Today’s conventional investment strategies were developed in the 20th century and haven’t evolved substantially since then. Our financial markets can no longer grapple adequately with the pressing challenges of our times—such as climate change, income inequality, diversity, and the health of our oceans.
We need a 21st century approach to investment that can systematically address these and similar challenges and that creates value that will last. This book demonstrates how finance can make that transition. It tells the story of a what, why, and how of investments that intentionally support the social, economic, and environmental systems so crucial to our survival in the years to come.
William Burckart, Steve Lydenberg, and Jessica Ziegler provide a guide for investors—both concerned individuals and financial professionals as well as investment advisors—explaining why this investment approach is critical today and how it can be put into practice. It advocates for a system-level approach to investing, in which investors craft portfolios and related activities that positively impact those whole systems upon which they ultimately depend.
For example, a portfolio addressing climate change might include investments in companies advancing solar power, wind power, battery storage, energy efficiency, sustainable forests, regenerative agriculture, and the like, along with related activities that seek to influence corporate behavior and public policy. This system-level approach strengthens the foundations upon which long-term investment returns are based.
The authors have pioneered this approach through their work at The Investment Integration Project (TIIP). They explore how today’s investment practices can undercut and destabilize the very systems that investors rely upon for long-term wealth creation. And they equip investors with the tools to minimize systemic risks and maximize potential rewards through this investment approach.