About Sustainable Investing
About Sustainable Investing
About Sustainable Investing
Delivering Net Zero isn’t just an imperative for society, it’s also the premier investment opportunity of our time.
“I get it: I need my portfolio to align with the values of the owner.
But unless I find the right positions, it’s all for naught.”
WHY SUSTAINABLE INVESTING?
We recognize that avoiding climate disaster is the greatest challenge of our generation & we must be part of the solution.
- Current trajectory is ruinous. 3° global temperature increase will raise the seas, cause more frequent, costly & deadly natural disasters, lead to food/water scarcity for half a billion people, make major cities in the equatorial band unliveable & drive hundreds of millions to migration. This could cost society 25% of global GDP by 2100.
- It’s already impacting every aspect of our world. Severe weather events have tripled in the last decade & insured losses have risen 8-fold. More than a quarter of our world has experienced moderate to severe land degradation.
- And it’s driving existential changes in our industry. ESG/values assets in ’20 surpassed 20% of total AUM in the US. Globally assets increased by 150%. Asset owners & managers with more than $40trn AUM are actively supporting net zero 2050.
We believe the greening of our economy can also be the most profitable investment opportunity any of us have ever seen.
- Our work: $120Trillion in necessary investments ~ one quarter of all capex FOR THIRTY YEARS
- Outsized returns will accrue to companies that contribute to the solution – many with new business models, & nascent technologies.
- We’re comfortable working with new and deep trends – it’s what we like most about thematic investing & we’ve been at it for 20years.
We think new skills are necessary: sustainable investing is vexingly complex – there is no simple algorithm.
- Demographics, technology, regulation, politics & societal attitudes will determine which pathways are investable.
- Forecasting becomes substantially more difficult when the future looks very different from the past.
- There is no perfect solution. Understanding the many trade-offs & time-frames of NZ50 is key.
- Together we have a unique skillset from having worked as civil engineers, consultants, investors, bankers & brokers.
We see tremendous risks too. There will negative returns in many legacy industries & mis-allocated capital in some new arenas.
- Companies will be forced to shoulder the entire cost of their impacts & adapt to new rules. Those that fail to evolve risk stranded assets & diminished returns at best.
- Moving regulatory & policy goal posts are further complexifiers for long term investors.
- Having worked through the internet bubble, the German solar bust & the Asian debt crisis, we’ve seen how hope/FOMO can overcome rational analysis.
We know asset owners & managers have a central role & want to work towards a solution to climate disaster.
- This time it’s different. Our clients are increasingly involved in engaging with companies to drive real change.
- Their challenges are real: providing a competitive return while aligning their portfolios with values.
- And it’s something we understand from having walked in their shoes & being in the same industry since the mid 90s.
And we believe strongly we can support them
- We are committed – leaving our previous careers behind & focusing solely on sustainable investing.
- We are putting our skills, values and diverse backgrounds to use – backed by 75 years of experience.
- We have the right balance of expertise – theme and valuation experience, a long term investing focus and a passion for sustainability
- We are independent, work exclusively for our clients and don’t do corporate deals - it’s the only way to avoid conflicts of interest.
After 10 years as a civil engineer, I spent 26 years working across finance, as a portfolio manager, a broker, managing debt books and in corporate finance and thematic analysis. I have come to realise that our industry must be part of the solution if our planet is to deliver net zero carbon and a greener economy. Many asset owners and portfolio managers want to make a difference, not just for value based reasons but also because it makes financial sense. But the tools we have to make our long term investment decisions are insufficient. There are no easy algorithms, but with proper analysis and information, we can make better investment choices. I have been shaped by growing up in New Zealand, the land of few people, lots of space, and incredibly beautiful landscapes. My small non-work contribution to our collective future is keeping bees – a sometimes frustrating experience but we cannot survive without them.
I’m using what I learned from 25 years on a trading desk for a new challenge – by far the biggest & most important I’ve seen: helping investors tackle climate change. We know our clients are integral to greening our economy & they’re passionate about it. Our job is to support them doing this profitably & sustainably while avoiding risks like stranded assets. Born & raised in Colorado, I grew up loving the outdoors. In my free time, I can be found hiking, biking or climbing with my family or camping with the scout troop.