Strategies For Sustainable Investing

There’s a missed opportunity in the investment world: over 95% of capital remains allocated to non-diverse funds. This leaves diverse-led funds undercapitalized, despite their proven ability to outperform. This disparity isn’t just about fairness — it’s about untapped potential. A report from the National Association of Investment Companies (NAIC) highlights systemic barriers: smaller commitments to diverse-managed funds, higher asset requirements and inconsistent support from corporate and union pension funds. These challenges restrict market growth and limit wealth creation in communities that could benefit most. Addressing these disparities is critical to building a more dynamic and equitable financial ecosystem. When diverse leaders manage funds, they bring unique perspectives, broader networks and innovative strategies that drive returns and create lasting economic impact. This mission is personal to me. Throughout my career, I’ve championed initiatives to expand opportunities for underrepresented entrepreneurs and fund managers. By supporting diverse leadership in finance, we not only unlock growth but also help close the #racialwealthgap and foster sustainable change. It’s time to reimagine how we allocate capital — embracing equality as both a value and a strategy. Together, we can fuel innovation, empower communities and strengthen our economy.

Over the past 15 years, only 24 stocks in the U.S. and Europe have increased in value by 100x or more. Surprisingly, the biggest winners were not famous tech giants like Netflix or NVIDIA. The top performer was XPEL, a Texas-based company that makes protective films for cars, returning over 118,000%. Second was Patrick Industries, which supplies parts for RVs and mobile homes, returning more than 65,000%. The broader point is that many of the best-performing long-term investments come from “boring” or overlooked industries rather than flashy, high-profile companies. These businesses are often run by disciplined founders who steadily compound value over many years without attracting much attention. The takeaway: true “100-bagger” stocks usually do not look extraordinary at first. They often appear to be small, unexciting companies that consistently execute well over long periods of time. Source: Thierry from arvy 🇨🇭 @ThierryBorgeat

SDGs as a framework for impact investment 🌎 The SDGs offer a universal reference point, but their utility for investors depends on how well they can be translated into actionable themes. Phenix Capital’s SDG–Impact Investing framework bridges this gap by mapping each goal to specific investment domains. This mapping reframes the SDGs not as abstract targets, but as investment-relevant categories — from financial inclusion and circular economy to clean transport and climate mitigation. It enables clearer capital deployment pathways within complex global agendas. Rather than treating all goals uniformly, the framework recognizes variance in capital flows. Goals such as SDG 7 (Clean Energy), SDG 9 (Industry & Innovation), and SDG 11 (Sustainable Cities) have attracted the largest volumes of committed capital, reflecting both maturity and scalability. Themes tied to social inclusion (e.g. access to education, gender lens investing, affordable housing) remain underfunded despite their structural relevance to long-term development and systemic resilience. Environmental goals are addressed through themes like ocean preservation, sustainable agriculture, water efficiency, and biodiversity — areas where alignment with regulatory and disclosure frameworks is increasingly critical. Blended finance and technical assistance (SDG 17) are positioned not as peripheral tools but as enablers to accelerate private capital participation in frontier markets and early-stage solutions. By aligning investments to themes rather than goals alone, the framework helps clarify intentionality, guide impact measurement, and strengthen portfolio coherence across multiple mandates. This approach is not just a classification exercise — it is a necessary step in moving from broad commitments to capital strategies that are both scalable and aligned with global outcomes. #sustainability #sustainable #business #esg #SDGs #impact #investment

🌱 Most people think impact investing is about “doing well by doing good.” That’s an oversimplification. The real power of impact investing isn’t just in financial returns or social good—it’s in how it redefines capital itself. The smartest investors know this isn’t a trend. It’s a fundamental shift in how we allocate risk, value innovation, and build the next generation of economic powerhouses. Here’s what’s really happening beneath the surface: 1. Impact Investing is About Asymmetry, Not Altruism Forget philanthropy. The best impact investments operate in asymmetric markets—where risk is misunderstood, and opportunity is undervalued. ↳ Example: Some of the highest returns in emerging markets come from infrastructure, fintech, and healthtech—sectors traditional investors overlook because they misprice risk. 2. The Next Unicorns Won’t Just Be Tech—They’ll Be Impact-Driven Venture capital still chases SaaS and AI, but the next breakout businesses will be those solving fundamental human needs at scale. ↳ Example: Climate tech is already attracting record investment. Affordable housing startups are rethinking supply chains. These aren’t charity projects—they’re billion-dollar industries in the making. 3. Impact Metrics Are the New Alpha Traditional investors measure success in financial KPIs. The smartest ones are now tracking impact KPIs as leading indicators of financial growth. ↳ Example: Companies that score high on sustainability and governance metrics are statistically outperforming their industry peers on profitability and resilience. 4. Capital is Moving—And Fast Institutional investors aren’t dabbling in impact anymore. The shift toward ESG and impact mandates is accelerating, meaning money is moving whether you see it or not. ↳ Example: The world’s largest pension funds are restructuring portfolios around sustainability—not for ethical reasons, but because long-term risk exposure is too high to ignore. 5. The Winners in Impact Investment Won’t Be the Usual Suspects Legacy institutions are slow to move, but this is where nimble investors, family offices, and new fund managers are gaining ground. ↳ Example: Look at microfinance 15 years ago—dismissed as fringe, now a $100B+ industry. The same is happening across regenerative agriculture, circular economy, and inclusive fintech. Bottom Line: Impact investing isn’t a side trend—it’s a fundamental rethinking of risk, opportunity, and economic value. The best investors aren’t just funding change; they’re getting ahead of the market before everyone else catches up. So the real question is: Are you playing catch-up, or leading the shift? ♻️ Share with your network - let's spread inspiration far and wide! 👉 Follow Ben Botes for more insights on Leadership, Entrepreneurship and Impact Investment.

Today is the day! I'm delighted to share the launch of the Open For Business 'Investor Guide to LGBTQ+ Inclusion' at the World Economic Forum in Davos. This report is the culmination of six months of meticulous research with Jude Seimon and writing with Jon Miller. It explores the integration of LGBTQ+ inclusive policies and practices within ESG strategies. Our research, examining the 290 largest publicly listed companies in the USA, UK, Germany, and Australia, has led to some compelling insights: 1️⃣ Forget ‘Go Woke, Go Broke’: companies with the top 25 LGBTQ+ Transparency Scores are 2.3 times more profitable than the bottom 25. 2️⃣ DEI isn’t dead: 92% of companies now list DEI as a material issue. This means they believe that poor performance on DEI could threaten the long-term viability of their business and social license to operate. 3️⃣ Follow the money – global LGBTQ+ consumer spending power is growing and eclipses the GDP of many leading economies. 4️⃣ ESG isn’t a ‘fad’ – investor interest in LGBTQ+ inclusion is increasing. This report is a key resource for investors, corporate leaders, and policymakers, as well as civil society organisations seeking to understand and leverage the power of LGBTQ+ inclusion not just as a moral imperative but as a strategic business practice. https://lnkd.in/d7SY4tWg #LGBTQInclusion #ESG #BusinessPerformance #Davos #WEF #InvestorGuide #OpenForBusiness

We’re on track for a 40% global water shortfall by 2030 according to World Economic Forum, and water scarcity is not just a future problem. It’s already reshaping agriculture in drought-prone regions in the Western U.S., North Africa, southern Asia, and parts of Europe. We face three hard truths: 1. Current irrigation practices are draining groundwater reserves. 2. The only other water source we have—desalination—is expanding, but it’s costly and energy-intensive. 3. We’re running out of time and options. But smart investments now can turn the tide. It starts with a basic economic principle: the efficient use of scarce resources. Traditional flood, furrow, and broadcast sprinkler systems underutilize up to 50% of the water they distribute—eerily close to that projected 40% global water shortfall. Smarter irrigation tools already exist: 📡 Soil moisture sensors 🛰️ Satellite & drone-based monitoring 🌦️ Integrated local weather stations 💧 Precision drip systems 🤖 Smart controllers to make it all work These aren’t just sustainable—they’re profitable. Precision drip irrigation can cut water use by up to 80% compared to traditional methods. Building well-designed water reservoirs further reduces reliance on aquifers by enabling efficient surface water use. Together, these solutions lower water use per kilogram of produce while boosting yields and profits.  #AgTech investments reduce risk, improve yields, and future-proof food systems. And open field applications are just the beginning of what’s possible. Smart greenhouses and other controlled environments can deliver 50–90% greater water savings by minimizing evaporation. I’ll explore that next. But for now, let’s stop wasting water and start investing in conservation. #WaterCrisis #SustainableFarming #ClimateResilience #SmartIrrigation #FutureOfFood #SupplyChain

What version of impact investing do we want to build by 2040? For me, it’s one that has Consequences. That was the provocation I shared during the The Global Impact Investing Network Forum session on The Future of Financial Markets. Impact investing emerged from the uncertainty of the post-financial-crisis era as a way to reimagine how private capital could deliver public good. 15+ years later, we’re again in a period of progress, volatility, and skepticism. 💡 The latest Annual Survey highlights a paradox. Impact washing is overwhelmingly the top concern. Yet only 1% of investors say they’re dissatisfied with their own impact performance. That can’t be right. It’s implausible that nearly everyone is performing well on impact, yet impact washing is the pressing issue for the industry - but not for individual organizations. 💡 As a provocation, today I think it’s too easy to call yourself an impact investor, and that is a problem in two ways. Those doing this well aren’t always rewarded in cost of capital or influence. Those who exaggerate or selectively report don't always bear the costs. That imbalance threatens the credibility of the field. Reflecting on the ambition we need, I highlighted 3 types of consequences. 🎯 Impact Performance We reward financial performance every day; rewarding impact performance should be just as normal. We’ve recently seen more adoption of impact-linked finance for transactions, and impact-linked compensation for funds and asset owners. By 2040, this shouldn’t be innovative; it should be standard. Every investor or fund claiming to target impact should be transparent about what happens in cases of expected performance, outperformance, or underperformance. 🎯 Impact Governance Accountability for impact can’t remain a management or reporting issue; it has to sit within governance. Boards, ICs, and fiduciaries should approach impact performance, risk, and alignment with the same seriousness as financial aspects. By 2040, that should be the expectation, not the exception. It means that governing bodies have the competence and oversight to weigh impact trade-offs and impact risks. 🎯 Aggregate Outcomes Impact investing must prove that it made a real difference. We’ve built frameworks, standards, reporting - but still don’t connect the capital deployed with the scale and nature of realized outcomes. By 2040, alongside every AUM figure, we should have credible evidence of both direct and indirect effects at the industry level. That’s how we retain trust in the label of impact investing. 🎯 Why Now If we’ve learned anything from ESG and climate finance, it’s that growth without integrity is fragile. This isn’t about making impact investing harder - it’s about making it distinctive, accountable, and enduring. 🙏 I’m grateful for this kind of discussion at the GIIN Forum, with thanks for Dean Hand, Maddie Ulanow, Blair R., Dimple Sahni, John Goldstein, and our highly engaged audience!

There hasn't been a single announcement. No coordinated plan. No public agreement. Yet across different industries, a similar pattern has emerged. Bill Gates has invested heavily in farmland, where productivity often depends on reliable water access. Nestlé has continued expanding its bottled water business while managing water sources through long-term permits and licenses. BlackRock has increased investments in infrastructure, utilities, and resource-related assets that include water systems alongside energy and transportation. On the surface, these investments seem unrelated. Agriculture. Consumer products. Asset management. But they all intersect with one increasingly important resource. Water. As populations grow, climate patterns shift, and demand for food and industry increases, access to reliable water is becoming a bigger economic consideration. For farmland, water availability can directly affect land values and crop production. For infrastructure investors, modern water treatment and distribution systems represent long-term assets that communities will continue to need. For consumer companies, securing sustainable water supplies is essential for future operations. This doesn't prove a coordinated strategy between these organizations. Each company is pursuing its own business objectives. But together, their investments highlight a broader trend. Water is becoming an increasingly valuable strategic asset, not because someone "owns all the water," but because managing, distributing, and protecting it will play a larger role in the global economy for decades to come. The biggest shifts often happen quietly. Long before they become obvious to everyone else. Source BlackRock annual reports, Gates Foundation and Gates investment disclosures, Cascade Investment filings, Nestlé annual reports, World Bank, United Nations water reports.

Countries are off track on the 2030 Agenda for Sustainable Development, with around half of the 140 Sustainable Development Goal (SDG) targets for which sufficient data is available deviating from the required path. On a “business-as-usual” pathway, where social, economic and technological trends do not shift markedly from historical patterns, the SDGs as a whole would remain out of reach even in 2050. The latest 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠 𝐟𝐨𝐫 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐥𝐞 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 𝐑𝐞𝐩𝐨𝐫𝐭 (https://lnkd.in/eykeRr8Z) reveals a critical funding gap of USD $4 trillion annually (pre-COVID $2.5 trillion, see figure 👇 ), primarily affecting developing nations. As we stand at a pivotal moment, it's clear that traditional funding methods are insufficient to meet these escalating needs, especially in the face of global challenges like climate change, inequality, and economic instability. As high as financing gap estimates are, they pale in comparison to the costs of inaction. The cumulative additional economic and social costs incurred from climate change under a business-as-usual scenario through 2050 are estimated to be almost five times larger than the climate finance needed to limit temperature increases to 1.5 degrees Celsius. Every dollar invested in risk reduction and prevention can save up to 15 dollars in post-disaster recovery efforts. 🔑 Key Insights: 🔹 Developing countries face steeper financing costs, severely hampering their sustainable development goals (SDGs). 🔹 Part of the gap is still the huge amount of (implicit) subsidies going to fossil fuels (7% of GDP 👇...this is already more than the $4 trillion that is needed) 🔹 The Role of Private Finance: Private finance emerges as a pivotal player. However, to truly make an impact, it must align more closely with sustainable development goals. It is clear that the largest part of sustainable finance is nothing else than risk mitigation (see figure 👇) 🔹 How to get better finance: ◼ Innovative Financing: Leveraging tools like green bonds and social impact investing to direct funds where they are most needed. ◼ Reforming Financial Systems: Enhancing the capacity of financial institutions to support sustainable projects through improved regulatory frameworks. ◼ Encouraging Public-Private Partnerships: These can mobilize significant resources, combining the agility of private sector innovation with the authoritative backing of public entities. As the 2025 International Conference on Financing for Development in Spain approaches, there's a collective urgency to reform our global financial systems. This is crucial not only for bridging the finance gap but also for ensuring that investments are both impactful and aligned with the global sustainable agenda.

Have you ever wondered how the world’s wealthiest families are using their resources to create meaningful change? Family Offices are leading the way by using their wealth to support ventures and philanthropy. Their investments target critical issues such as healthcare, education, and climate change. At the heart of it, Family Offices manage the wealth of ultra-high-net-worth families. Here’s a quick breakdown of the main types: • Single-Family Offices (SFOs): Manage the wealth of one family, focusing on long-term planning and philanthropy. • Multi-Family Offices (MFOs): Serve several families, offering more efficient wealth management. • Family Foundations: Focus primarily on philanthropy and charitable giving. • Asset Managers: Preserve and grow family wealth, often with an emphasis on impact-driven strategies. Impact investing—where financial returns meet social and environmental goals—is at the heart of many Family Offices' strategies. From renewable energy to healthcare access, these families often align their investments with the United Nations Sustainable Development Goals (SDGs). They’re ideally positioned to invest in projects like clean energy and healthcare, contributing to global progress while ensuring financial growth. A generational shift is also influencing Family Offices. Millennials and Gen Z are prioritizing impact over wealth preservation. Younger leaders are steering investments toward sustainability and social justice, redefining what it means to manage family wealth. Women are playing a critical role in leading Family Offices and driving impactful investments. Leaders like Liesel Pritzker Simmons, Abigail Disney, and Arlene Rockefeller are focusing on issues like gender equality, healthcare, and education—proving that thoughtful investing can create real change. Family Offices are successfully blending philanthropy with financial returns by adopting holistic investment strategies that align wealth with their core values. Advisors are helping these offices balance financial goals with social impact, ensuring that their investments not only grow wealth but also contribute to a better world. The takeaway for Family Offices is clear: aligning financial strategies with personal values is key to creating sustainable investments that drive meaningful change. By building relationships with like-minded investors and collaborating with advisors, Family Offices can make impactful investments while preserving their wealth for future generations. Looking ahead, Family Offices have a unique ability to balance financial success with purpose. Their thoughtful investments are shaping the future, creating lasting legacies that contribute to both financial growth and global change. 💬↓ #familyoffices #familyoffice