Sustainable Investing must still generate a financial return. Without this, the required capital to deliver net zero 2050 and a greener economy will not flow. This requires us to add new skills onto traditional financial analysis, around theme progression, competitive advantage and value creation.
To keep global warming to only 1.5-2.0° (Net Zero 2050), we need to mobilise vast amounts of private sector capital – up to $120 trillion. This investment must be financially as well as socially viable. Popular tools such as ESG scoring, and measuring company exposures to the UN SDG’s, are largely silent on the key question … “does this make a good investment”.