Corporate Social Responsibility

Triodos Bank just launched a €300 million fund that treats nature as a profitable asset class. Not a charity. Not an offset. A return. This has been years in the making. In 2024, Triodos Bank and Fondaction - a Canadian investment fund - announced a partnership with the explicit intention to jointly accelerate positive change in global finance. The goal was clear from day one: close the finance gap for biodiversity and natural capital in developed markets. Last month, that partnership became a fund. Triodos Investment Management and Fondaction Asset Management have launched Value Nature Fund I - a closed-end natural capital fund targeting €300 million, aimed at transitioning farmland and forests to regenerative, closer-to-nature practices across North America and Europe. The fund brings together Fondaction's expertise in impact-driven investments in North American environmental markets. And Triodos's track record in European sustainable food and agriculture systems. Two complementary networks. Two continents. One investment thesis. The financial case is explicit: The firms say the fund comes at a moment of unmatched opportunity - creating value from the transition towards sustainable food and timber supply chains, hedging portfolios against volatility and inflationary pressures, and enhancing the resilience of critical economic sectors. This is not the language of philanthropy. It is the language of a portfolio manager. The fund intends to classify as SFDR Article 9 - the EU's most stringent sustainable finance label - with measurable impact KPIs across biodiversity and ecosystem services, climate mitigation and adaptation, and social wellbeing. Performance is tracked and outcomes are reported. Jonathan Coupland, Portfolio Manager at Fondaction, put it plainly: "Natural capital represents a structural response to ecosystem degradation, helping institutional investors address financial risks that can no longer be overlooked." That sentence matters. Not a values statement. A risk statement. The partnership's founding ambition was to demonstrate the scalability of solutions that address the dual climate and biodiversity crises with integrity - and that can achieve both financial performance and positive outcomes for nature. Value Nature Fund I is that demonstration. At €300 million scale. The question for every institutional investor watching: if Triodos and Fondaction see unmatched opportunity in natural capital and can build the vehicle for it - why not you too?

This visual helps explain 3 concepts that A LOT of people forget about solar☀️   Solar energy’s fuel (sunshine) is free and delivered daily.   Therefore, electricity from solar does not include the cost of each marginal unit of fuel. That makes sense to people.   But the full implications of an energy system built upon a zero-cost, abundant fuel source are often still dramatically underestimated.   There are three other kinds of savings that solar provides:    Infrastructure Savings – As shown in the graphic, the world spends billions of dollars every year extracting oil, gas, and coal and transporting to the places it will be burned. The infrastructure to mine, refine, and move these fuels from point A to point B, whether by boat, rail, or pipeline, requires regular maintenance and TONS of investment. With solar, the sun does it all for us, delivering usable photons every morning.   Predictability Savings – When you’re relying on a globally traded commodity to produce electricity, the final cost of each gigawatt can fluctuate with the current price of oil and coal. Market uncertainty can send the price of these commodities (and the final price for electricity) soaring on a whim. But it doesn’t need to be this way. Once a solar farm is installed, the cost of each unit of electricity is basically fixed. This helps utilities better predict their costs and that’s a huge benefit to consumers.   Energy Independence Savings – Because oil, gas, and coal rely on complex international supply chains and lots of global infrastructure, there is a lot more that can go wrong. Geopolitical shocks, natural disasters, port congestion, and accidents (remember the Suez Canal blockage?) can all impact the predictability and reliability of coal and gas generation. No one can embargo the sun or interrupt its delivery to us, so solar energy is fundamentally more local and more independent.   I think it’s important to explain these hidden savings when talking to naysayers because, while they may understand that free sunshine = free fuel, they may not understand just how much they’re paying for the infrastructure, uncertainty, and volatility of fossil fuels.

The stark contrast in per-capita consumption-based carbon emissions between countries in the Global North and the Global South. This disparity underscores a fundamental inequity: nations that contribute the least to global #greenhousegasemissions often bear the brunt of #climatechange's adverse effects. The graph shows the consumption-based emissions, carbon emissions to the country where goods and services are consumed rather than where they are produced. This methodology reveals the true carbon footprint of a nation's lifestyle. Wealthier nations have higher consumption patterns, leading to more significant emissions. This is not just due to industrial activities but also because of the demand for goods and services that have high carbon footprints. Many developed countries have shifted manufacturing and production to developing nations. While this move reduces their production-based emissions, their consumption-based emissions remain high because they still consume these goods. Developed countries have historically contributed the most to cumulative global emissions due to early industrialization. This historical context adds another layer to the injustice, as past emissions continue to affect the current climate. As we lead to the next round of negotiations at #COP29 we must recognise that those who contribute most to emissions have a greater responsibility to lead in mitigation efforts and provide financial and technological aid to countries in the Global South to help them adapt to climate impacts and develop sustainably.

🌍 We Can’t Afford to Get Climate Policy Wrong—A Look at the Data Behind What Really Works 🌍 In the race against time to combat climate change, bold promises are everywhere. But here’s the critical question: Are the policies being implemented actually reducing emissions at the scale we need? A groundbreaking study published in Science, cuts through the noise and delivers the insights we desperately need. Evaluating 1,500 climate policies from around the world, the research identifies the 63 most effective ones—policies that have delivered tangible, significant reductions in emissions. What’s striking is that the most successful strategies often involve combinations of policies, rather than single initiatives. Think of it as the ultimate teamwork: when policies like carbon pricing, renewable energy mandates, and efficiency standards are combined thoughtfully, the impact is far greater than any one policy could achieve on its own. It’s a powerful reminder that for climate solutions the whole is indeed greater than the sum of its parts. Moreover, the study’s use of counterfactual emissions pathways is a game changer. By showing what would have happened without these policies, it provides a clear, quantifiable measure of their effectiveness. This is exactly the kind of rigorous evaluation we need to ensure that every policy counts, especially when we’re working against the clock. If we’re serious about meeting the Paris Agreement’s targets, we need to focus on what works—and this research offers a clear roadmap. Let’s champion policies that have proven to make a difference, because we don’t have time to waste on anything less. 🔗 Full study in the comments #ClimateAction #Sustainability #PolicyEffectiveness #ParisAgreement #NetZero #ClimateScience

♻️ Recycling, reimagined. I came across Ameru’s AI Smart Bin — and it made me realize something we rarely talk about in sustainability: We don’t fail to recycle because we don’t care. We fail because the friction is too high. This bin doesn’t just collect waste. It sees what you throw, sorts it automatically, and even gives you real-time feedback. The results? ✅ 95%+ sorting accuracy ✅ Analytics that show you how to reduce waste ✅ ROI in under 2 years 👉 Here’s the hidden insight: Let’s be honest: recycling is broken. Most of us want to recycle, but the system is designed for failure — too much friction, too many rules. The real innovation isn’t in AI or edge computing. It’s in making sustainability invisible. No guilt, no extra steps — just default behavior upgraded. 💡 Actionable thought: Whether you’re building tech, a product, or even a habit, ask yourself — how can I make the right choice feel effortless? Because effort scales linearly. But effortlessness? That scales exponentially. PS: Imagine when every trash bin becomes a data point in the circular economy. 👉 Do you think this kind of “invisible innovation” could transform how we recycle at home and at work? #GreenTech #AI #Innovation #Sustainability #CircularEconomy

People sometimes see Acumen raising large amounts of commercial capital and assume we no longer need philanthropy. No sooner had we announced $250M for our Hardest-to-Reach fund — to bring off-grid light and electricity to 70 million people across 17 of Africa’s most challenging markets — than some concluded Acumen must be set. In fact, the opposite is true. First, let me acknowledge how tough this fundraising environment is. I couldn’t be prouder of the team and partners who made our Hardest-to-Reach announcement possible after 2.5 years of relentless effort. And yet it’s worth underscoring: none of this would have been possible without philanthropy. Philanthropy is the first mover. It allows us to place early bets in fragile markets like Malawi and Benin, cover the development costs needed to structure and raise investment across the capital spectrum and provide the technical assistance that builds capacity. To put a finer point on it: of the nearly $250M raised for Hardest-to-Reach, more than $80M is philanthropic. That risk-taking anchor made it possible to prove new models — and ultimately unlock institutional investment. During Climate Week last month, I met philanthropists who see this as the time to pivot from grantmaking toward impact investing. While I understand the instinct, I want to offer a reframing: it’s not either/or. If you want your capital to have lasting impact, there may be no better use than catalytic philanthropy — especially when deployed through blended finance models like Hardest-to-Reach. Philanthropy cannot see itself at the margins. It is catalytic capital — risk-taking, patient, and unabashedly impact-first — creating the conditions for commercial capital to follow. And it's more important now than ever as traditional aid shrinks and many governments shift from grants to investment approaches. At Acumen, philanthropy from donors at all levels remains our bedrock. It enables us to reach the hardest-to-reach, build inclusive markets where none exist, and keep social impact at the center of everything we do. And because solving problems of poverty is Acumen’s mission, raising philanthropic capital will remain essential to our work.

We’ve called efficiency the unsung hero of the energy transition in the past. While the energy transition will happen first through the transition of energy usages, like the shift with transport, from internal combustion engines to electric vehicles, or from fuel or gas boilers to heat pumps, we cannot ignore the utmost priority of the energy transition: efficiency. Efficiency is the greatest path to reduce our energy use, our impact on the world’s climate through CO2 emission reduction, and very importantly, the best way to make solid and practical savings. In its most historical form, energy efficiency is about better insulation, to reduce heating (or cooling) loss in buildings like family homes, warehouses, office high rises, and shopping malls. This is useful, but expensive and tedious to realize on existing installations. Digitizing home, buildings, industries and infrastructure brings similar benefits at a much lower cost and a much higher economic return. The combination of IoT, big data, software and AI can significantly reduce energy use and waste by detecting leaky valves, or automatically adjusting heating, lighting, processes and other systems to the number of people present at any given time, using real-time data analysis. It also allows owners to measure precisely progress, report automatically on their energy and sustainability parameters, and benefit from new services through smart grid interaction. And this is just the energy benefit. Automation and digital tools also optimize the processes, safety, reliability, and uptime leading to greater productivity and performance.

Wheel for Sustainable Business Innovation 🌎 The sustainability landscape is evolving rapidly, and businesses are increasingly expected to integrate environmental and social considerations into their innovation processes. However, traditional innovation frameworks often fall short by focusing solely on customer needs, financial returns, and technical feasibility, leaving critical planetary challenges unaddressed. A more comprehensive approach is needed—one that embeds sustainability at the core of value creation. The 130+ Value Proposition Types Wheel is a practical tool that helps organizations frame innovation efforts across four key dimensions: People, Planet, Profit, and Progress. It provides over 130 value types that businesses can leverage to ensure their projects contribute meaningful solutions to global challenges such as climate action, resource efficiency, social inclusion, and technological advancement. This approach shifts the focus beyond immediate customer needs to include long-term sustainability impacts across entire ecosystems. By using structured frameworks like this, companies can link their innovation projects directly to UN Sustainable Development Goals (SDGs), addressing critical issues such as climate resilience, biodiversity, and social equity. The tool also encourages the use of metrics to track progress, making sustainability-driven innovation more actionable and measurable across industries. It helps businesses unlock new forms of value while addressing both environmental risks and opportunities. The tool is adaptable to different phases of the innovation process, from identifying unmet needs to scaling solutions in the market. It guides organizations in understanding how their innovations create value in areas such as climate action, circularity, supply chain management, and stakeholder engagement. This makes it relevant for both B2B and B2C companies aiming to enhance their impact while future-proofing their operations. Originally developed by Explorer Labs, this tool has been referenced in the past and continues to remain highly useful as businesses advance their sustainability journeys. As 2025 begins, leveraging tools like this can help organizations move from incremental improvements to transformative solutions, embedding sustainability into innovation processes that deliver lasting value. #sustainability #sustainable #business #esg #climatechange #innovation #SDGs

Global sales of EVs and hybrid vehicles hit 1.2 million units in February 2025. That's a massive 50% jump compared to last year. But get this: China accounted for nearly 75% of those sales! I've posted before about the pace in China, and it just keeps accelerating. EV sales there are up 76% year-on-year. Brands like BYD, Xiaomi, Xpeng, and Zeekr are launching new models at lightning speed, moving from plug-in hybrids to fully electric in record time. In Europe, the race is still on. Volkswagen boosted BEV sales by 180%, BMW overtook Tesla, and Chinese-owned brands reportedly outsold Tesla in Europe for the first time. Meanwhile, Tesla's EU market share hit a five-year low. But what I still can't get over is the insane pace in China! I recently drove a Xiaomi EV in Shanghai that felt like a one-to-one copy of the Porsche Taycan for $40,000. Incredible materials, smooth drive, and great steering. Even my engineer, who was with me, was impressed. And this is just four years after Xiaomi said, "Let's make cars." Now, they're producing 100,000 a year. Also extremely interesting is that 20% of the car's cost is subsidised. That kind of scale-up is of course possible based on massive government backing. On the autonomous side, I've experienced Waymo in San Francisco and Hyundai's lidar-based system in Shanghai: fully self-driving, even in chaotic traffic. The future is already here. And I've become a real fan, especially when I need to work between meetings or get to the airport. Same as Vay for teledriven car sharing. There’s so much going on! Has Europe lost the race? No! Not yet. But we're under pressure. And we need to move faster. The future is 100% electric: that's crystal clear to me. Hybrids may be an important bridge, but the long-term path is electrification, enabled by renewables. So the real question is: Can Europe match China's speed, scale, and tech leadership? Or are we looking at a permanent power shift in the EV industry?  I'd love to hear your thoughts in the comments. #EV #ElectricVehicles #Mobility #Innovation #ChinaEV #EuropeEV #Automotive

New paper, "Sustainable Investing: Evidence From the Field" (with Tom Gosling and Dirk Jenter). We survey 509 equity portfolio managers, of both traditional and sustainable funds, on whether, why, and how they incorporate firms’ environmental and social performance into investment decisions. 1. Both traditional and sustainable funds rank ES last out of six drivers of long-term value: below strategy, operational performance, governance, culture, and capital structure in that order. Clients interested in financial returns should not overweight a fund's ES credentials above its ability to assess these other factors. 2. This low relative ranking doesn't mean that ES is immaterial in absolute terms. Indeed, 73% of sustainable and even 45% of traditional investors expect ES leaders to deliver positive alpha. Unexpectedly, the most popular reason is that ES is a signal for other important value drivers rather than mattering directly. As I wrote in "The End of ESG", ES is "extremely important and nothing special". 3. ES performance influences stock selection, engagement, and voting for 77% of investors (66% traditional, 91% sustainable). Calls to "ban ES" make little sense as many traditional investors voluntarily incorporate it. 4. Only 24% of traditional and 30% of sustainable investors would sacrificing even 1bp of annual return for ES, citing fiduciary duty concerns. Policymakers and the public need to have realistic expectations of the asset management industry's likely ES impact. It will incorporate financially material ES factors, but it won't subsidize ES investments that offer below-market returns. That’s not because fund managers are greenwashing, but because they are fund managers. Their fiduciary duty is to their clients, whose goals are often financial. 5. But non-financial goals can be pursued through ES constraints such as fund mandates. 71% (61% traditional, 84% sustainable) report that ES constraints required them to make different investment decisions. These constraints sometimes reduced the very ES impact they aim to achieve, for example by preventing funds from investing in ES laggards whose performance they could have improved. 6. Overall, traditional and sustainable investors are more similar than commonly believed. Sustainable investors recognise fiduciary duty and are unwilling to sacrifice financial returns for ES. Traditional investors view ES as material and face ES constraints (firmwide policies, client wishes) preventing investment in "unsustainable" stocks. While some clients are attracted by sustainability labels, many traditional funds invest sustainably and many sustainable ones don't - and chasing a label can prevent true sustainable investing. Big thanks to the those who filled in the survey, beta-tested it, distributed it, and were interviewed. We hope that by directly involving practitioners, we can increase the relevance of academic research. https://lnkd.in/eGzRzE5t