“There are no side effects – just effects… [Side effects] are just a sign that the boundaries of our mental models are too narrow, our time horizons too short” – Professor John Sterman, Director of MIT System Dynamics Group.
Sustainability is becoming an ever-more-important theme for the investment industry – indeed, the ‘slow but unstoppable’ sustainability train has now left the station, and is picking up speed. Sustainability is a subject close to the heart of the Thinking Ahead Institute and we have worked on a number of related initiatives since our beginnings in 2015. Much of our work focuses on equipping investment organisations to have a holistic and actionable understanding of sustainable investing and how they create value for wider stakeholders such as society and the planet. We do this through providing easy to navigate tools and guidelines, enabling better alignment of mission and broadening the focus of measurement.
Duty of ownership
A conversation with Lucy Thomas, Head of Investment Stewardship at TCorp and Leon Kamhi, Executive Director: Head of Responsibility at Hermes.
A conversation with John Green, Co-CEO of Investec Asset Management and Liza McDonald, Head of Responsible Investment for First State Super.
A conversation with Diandra Soobiah, Head of Responsible Investment at Nest, and Matt Christensen, Global Head of Impact and Responsible Investment at AXA IM.
We hosted a webinar on 9 May 2019 which looked at purpose and value creation in the investment industry.
Marisa Hall shares an overview of research into purpose and value creation in the investment industry.
Sustainability and investments
Our planet’s life supporting system is the ultimate complex system that matters to every one of us. In addressing the challenge of climate change, investors are facing immense levels of uncertainty, compounded by a long time horizon.
A set of strong investment beliefs acts as a long-term compass to guide investment decisions in such an environment.
An investors guide to communicating value created
Featuring case studies from seven global investment organisations, this paper provides practical guidelines to help organisations define purpose and document beliefs; measure impact; and communicate the value created for stakeholders.
Exploring the purpose of the investment industry and the agents within it, and how the industry’s value proposition to end savers can be developed and improved.
We propose a vision of what the investment industry should be, and the duty it should take on, and call more stakeholders to the value creation boundary – in particular the planet, and ideally wider society too.
Aiming to help asset owners develop fully-rounded beliefs on sustainability, we include a survey to test benchmark the strength of their beliefs against peers to see if and where they can create an investment edge.
This paper focuses on sustainability risk management and portfolio construction, which are the parts investors tend to struggle to apply the most.
A series of case studies from the sustainability portfolio construction working group.