Understanding Esg Investing

It's been an incredible 2 years working alongside some phenomenal women I now get to call friends. The task was to unpack the challenges faced by high growth women-led businesses, of which there are many. I won't dive into that, because we all know them. I would like, instead, to focus on the recommendations. There are 7 and they are all achievable. Recommendation 1: Investors should better monitor the proportion of funding they invest in female founded businesses. The Taskforce believes that by encouraging more investors to collect data on the proportion of funding they allocate to female-led businesses they will better target action to increase it. Recommendation 2: Firms should set their own voluntary targets for the number of women in senior investment professional roles and report against them on their websites. The Taskforce’s view is that increasing diversity of senior investment professionals will help increase investment in women-led businesses - venture capital firms with a female partner are more than twice as likely as firms without to invest in a company with a woman on the management team. Recommendation 3: Increase signatories to the Investing in Women Code, particularly for private debt funds and Limited Partners, to boost investment in women-led enterprises. The Code is a voluntary commitment from financial services to support female entrepreneurship. The Taskforce recommends an increased push to get private debt funds and Limited Partners to sign up to the code to increase the flow of funding to female founded businesses. Recommendation 4: Drive inclusive behaviour in the investment ecosystem. The Taskforce has submitted a response to the Financial Conduct Authority’s consultation on diversity and inclusion in the financial sector which includes a call to reduce the threshold for companies below 251+ employees to incorporate venture capital firms (most of which are SMEs), to drive greater diversity in the companies and, thus, their decision making. Additionally they have called for the requirement for companies to have a carers’ leave policy in place, as they view this as an important factor in returning talent and retaining gender diversity at senior levels. Recommendation 5: Roll out Female Founder Growth Boards across England. Almost 46% of the UK’s high-growth enterprises are located in London. The Taskforce believes this is due to easier access to funding, connections, knowledge sharing, talent, and customer base. They have created a ‘blueprint’ for regions outside London to replicate that environment. Female Founders Growth Boards bring together public and private sector stakeholders to create a pool of resources. The blueprint also includes a dashboard, collating data to highlight opportunities and monitor progress. Taskforce member Zandra Moore has already set up a Female Founder Growth Board in Leeds. The aim is for the blueprint to be self-perpetuating, being replicated by more cities across England.  

🌍 World inequality: Visualizing the Disparity in Global #co2emissions in 2019 Data from the #Emissions Inequality Calculator by the SEI Africa – Stockholm Environment Institute 💰 Wealthier Families Amplify the #CarbonFootprint In 2019, the top 1% of the world's income earners contributed to a staggering 15% of global CO2 emissions. To put this in perspective, the emissions of this elite 1% eclipsed the carbon savings of one million onshore #windturbines. In stark contrast, the bottom 50% were responsible for a mere 8% of CO2 emissions. 🌐 Emissions Breakdown by Income Group (2019, in 2011 PPP USD): Top 1%: $310K (15%) Next 9%: $90K (34%) Middle 40%: $16K (43%) Bottom 50%: $2K (8%) The root of this inequality lies in consumption habits. High-income countries drive the demand for industries like #fashion, responsible for 2-8% of global carbon emissions, according to the United Nations. The transport sector, prevalent in developed countries, has seen a doubling of emissions since 1970, with 80% attributed to road vehicles. 🍽️ Food for Thought: Literally Higher-income families, spending more on food, inadvertently contribute to CO2 emissions. The production, transportation, and mishandling of food generate significant carbon footprints. This stark reality demands a collective recalibration of our consumption practices. It's a call to reconsider our choices, advocate for sustainable industries, and champion policies that bridge this alarming income-driven emissions gap. https://lnkd.in/ebe57TM3

🚨 This could be a real game changer : University of Cambridge and the United Nations Joint Staff Pension Fund (UNJSPF) have just announced they would invest $750m tracking a new climate-focused bond index. The methodology behind this index is groundbreaking. As someone working to stop the financial sector from fueling the climate crisis with Reclaim Finance - ONG, I see this as really good news for investors looking to align their funds with climate goals. Why? Because no other corporate bond index today directly tackles fossil fuel expansion, despite bonds being a key source of new financing for the companies driving this expansion. That’s a glaring gap – and this index is finally closing it. What makes it so impactful? The methodology will assess: 1️⃣ The actual plans and actions of oil & gas companies and especially if they are still undertaking expansion 2️⃣ The financing policies of major banks - i.e. do they still finance fossil fuel expansion  3️⃣ The underwriting practices of insurance companies - i.e. do they still insure fossil fuel expansion In other words, it looks at how the entire financial system is enabling fossil fuel expansion – and makes this red line the cornerstone of how the index is built. 💥 This is exactly the kind of tool we need if we’re serious about aligning finance with climate goals. 👉 A message to asset owners, especially #pension funds: it’s time to rethink your bond portfolios – not just in terms of ESG ratings, but in terms of how your index choices are automatically allocating (or not) capital to the very companies undermining the climate transition. Do you also think this new index could help making bond investments a part of the solution?

Just when you think you’ve got all your #sustainability  focus areas humming along nicely, you read a report by The Carbon Bankroll. That was our team last year when we learned how many tech companies' liquid assets are held in emissions-heavy investment vehicles and in some cases, the investments are contributing to emissions that exceed the company’s scope 1-3 emissions combined. Talk about a wake-up call. “Financial supply chain” emissions have historically been considered immaterial for the tech sector, but we didn't want to ignore them. This realization led Atlassian to examine our own financial supply chain, and we found that some of our investments didn't line up with what we were learning about the Net Zero transition and climate related financial risk. So we collaborated with the finance team to ensure we were taking a long term view. For example, we no longer use investment vehicles involving companies that get more than 10% of revenue from fossil fuel extraction or development. We're aiming for better ROI for the company *and* the climate. This is just a start and there’s more we can do. Here’s the best part, though: what began as curiosity has turned into another avenue for building a more sustainable business. Sometimes subtle really can be thrilling. More details in our “Don’t #@!% the Planet” guide if you want to go deeper: https://lnkd.in/gqEppj6H

We are too many people on Earth anyways... Really? Think twice. The top 10% of the world's population is actually responsible for 50% of the emissions. So if you think you are a drop in the ocean. You matter MUCH MORE than you think. In the media, we often hear the claim that there are too many people on Earth. However, the shocking reality is that the emissions from the bottom 50% of the population are almost negligible. The distribution of emissions is far from equal. While it is common to attribute the responsibility to fast-growing emerging nations and their desire to burn coal for rapid development, the truth is that this is not the most significant issue today. Here’s a breakdown of the massive impact of the top 10% on climate: 💥Between 1990 and 2019, they were responsible for using up 40% of the emissions 💥On average, they emit 24 tonnes of CO2 annually, which is 8.5 times the amount needed in 2030 to stay below the safe limit of 1.5°C 💥Of the emissions of the global top 10%, 60% come from high-income countries. 💥The largest share of emissions among high-income groups is from transport, mostly from frequent flying. The top 10% and particularly the super-rich dictate the climate story in three ways: 🔴 Daily Emissions 🔴 Financial Interests - their investments and shareholdings in heavily-polluting industries 🔴 Societal Authority - their outsized influence on media, economy, and politics But WE can change this narrative. Here’s why the top 10% are important in the climate fight: 🟢Their political voice and economic power are important in securing the change in politics and economics we need to see 🟢 Even with a global redistribution of incomes to raise everyone to the World Bank’s proposed prosperity line, the global richest 10% will still have an average annual income of around US$47,000 while reducing 10% global emissions. And the three main things we need to focus on: ✅ A radical increase in equality through policies that close the wide wealth gap ✅ A swift and equitable transition away from fossil fuels. We need to exert pressure on banks to cease subsidies and completely divest. ✅ A new purpose for a new age by focusing on well-being and planetary health and rejecting perpetual growth economics Oxfam and SEI — Stockholm Environment Institute put out a fascinating report. Link in the comments👇 ——————— 💚 Join 2,000+ Climate Insiders in my newsletter. Receive 1 actionable tip every Saturday in your inbox to boost the growth of your Climate Fund, Startup, and Career. Sign up here 👉 https://lnkd.in/ektv3C_s

Climate adaptation will not scale until we stop treating women as invisible collateral. For years, global finance has obsessed over mitigation—over carbon credits, over tech innovation, over glossy green transitions. Meanwhile, climate adaptation—the stuff that protects people, communities, and lives from what’s already here—gets left behind. Why? Because it’s “messy”. It’s local. And because it's overwhelmingly about women in the Global South—women whom capital markets have always seen as too poor, too risky, too small to matter. That’s exactly what we set out to challenge with the Women’s Livelihood Bond™ Series, and particularly WLB5—the world’s first Orange Bond. In this recent feature by GIZ and the World Economic Forum, WLB5 is recognized as a model for how gender-lens investing can reduce risk, boost resilience, and build inclusive economies in climate-vulnerable countries like Indonesia. But WLB5 wasn’t designed to be a one-off innovation. It was structured to demonstrate that investing in women is not only just—it’s investable. With a portfolio of women-focused enterprises, a tiered risk structure, and guarantees from DFC and SIDA, WLB5 showed how blended capital and gender-intentionality can work together to create a resilient, scalable asset class. This isn’t about another product. It’s about redefining the core architecture of climate finance—and making sure the people most affected by the crisis are also the ones shaping and benefiting from the solutions. Big thank you to the brilliant writers behind this piece: Sandeep Bhattacharya and Sourajit Aiyer at Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and World Economic Forum for the feature! https://lnkd.in/g-HFdG5e

𝐍𝐁𝐈𝐌’𝐬 𝐄𝐒𝐆 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲: 𝐒𝐦𝐚𝐫𝐭 𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠, 𝐍𝐨𝐭 𝐏𝐨𝐥𝐢𝐭𝐢𝐜𝐬 𝐚𝐧𝐝 𝐩𝐫𝐨𝐭𝐞𝐜𝐭𝐢𝐧𝐠 𝐥𝐨𝐧𝐠-𝐭𝐞𝐫𝐦 𝐯𝐚𝐥𝐮𝐞. I’ve been following Norges Bank Investment Management (NBIM) closely, and their approach to #ESG is a masterclass in long-term, risk-based investing. Managing $1.7 trillion, they don’t see ESG as a "nice-to-have,” they see it as a financial necessity. 🔹 1. 𝑬𝑺𝑮 𝒂𝒔 𝑹𝒊𝒔𝒌 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕 NBIM holds 1.5% of global equities, meaning their returns are directly tied to how well the world economy handles #climatechange, #biodiversity loss, and #social #inequality. If companies ignore these risks, their valuations—and NBIM’s investments—suffer. 🔹2. 𝑪𝒍𝒊𝒎𝒂𝒕𝒆 𝑨𝒄𝒕𝒊𝒐𝒏 𝑷𝒍𝒂𝒏 (2022-2025) Their strategy is crystal clear: ✅ Push for net-zero by 2050 ✅ Engage with the 170 biggest emitters (responsible for 70% of portfolio emissions) ✅ Advocate for stronger climate policies 🔹 3. 𝑬𝒏𝒈𝒂𝒈𝒆𝒎𝒆𝒏𝒕 𝑶𝒗𝒆𝒓 𝑫𝒊𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕 NBIM doesn’t just walk away from high-emission industries. Instead, they push for real change, meeting with 3,000+ companies in 2023 alone. But they’re not afraid to cut ties—150 companies have been dropped due to unsustainable business models. 🔹 4. 𝑨𝒄𝒕𝒊𝒗𝒆 𝑶𝒘𝒏𝒆𝒓𝒔𝒉𝒊𝒑 & 𝑪𝒍𝒊𝒎𝒂𝒕𝒆 𝑰𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕 They’re using their influence to: 📌 Vote on climate resolutions 📌 Push for science-based targets 📌 Invest in renewables & low-carbon tech 💡 While some investors shy away from ESG, NBIM is doubling down—because this isn’t about ideology, it’s about financial resilience. ❓ 𝖶𝗁𝖺𝗍 𝖽𝗈 𝗒𝗈𝗎 𝗍𝗁𝗂𝗇𝗄 𝗌𝗁𝗈𝗎𝗅𝖽 𝗂𝗇𝗏𝖾𝗌𝗍𝗈𝗋𝗌 𝗉𝗋𝗂𝗈𝗋𝗂𝗍𝗂𝗓𝖾 𝖾𝗇𝗀𝖺𝗀𝖾𝗆𝖾𝗇𝗍 𝗈𝗋 𝖽𝗂𝗏𝖾𝗌𝗍𝗆𝖾𝗇𝗍 𝗐𝗁𝖾𝗇 𝗍𝖺𝖼𝗄𝗅𝗂𝗇𝗀 𝖤𝖲𝖦 𝗋𝗂𝗌𝗄𝗌? 𝖫𝖾𝗍’𝗌 𝖽𝗂𝗌𝖼𝗎𝗌𝗌. 👇

The climate is changing faster than many business models are built to handle. But for those looking ahead, climate adaptation is emerging not just as a necessity — but as one of the most significant financial opportunities of the coming decades. According to a new report by GIC, Singapore’s sovereign wealth fund, and Bain & Company, climate adaptation solutions could generate $4 trillion in annual revenue by 2050 — with $2 trillion of that growth driven directly by global warming. The market value of companies offering adaptation products and services is expected to climb from $2 trillion today to $9 trillion, representing a major investment opportunity across industries. What exactly does adaptation mean for business? Unlike mitigation, which targets the reduction of emissions, adaptation focuses on protecting systems, infrastructure and people from the physical impacts of climate change. This includes flood protection, wildfire response, drought-resilient agriculture, backup energy systems, heat-resistant building materials and precision weather forecasting. The investment case for adaptation is resilient across all climate pathways, with less than 4% variation in market value projections even under different warming scenarios. This makes adaptation a strategically sound long-term investment — relatively insulated from the political and regulatory uncertainties that can impact mitigation-focused ventures. Critically, the report finds that current market forecasts may significantly undervalue the future revenue potential of adaptation, suggesting that investors could benefit from upside surprises as awareness and demand accelerate. Growth will come from both emerging technologies and scaled deployment of proven solutions. For businesses, this means both innovation and implementation will drive returns — whether through the development of next-generation cooling systems or the mass rollout of flood defences in vulnerable regions. With the world likely to overshoot the 1.5°C target, adaptation is no longer optional. It is becoming integral to business continuity, supply chain resilience and long-term value creation. Yet adaptation finance still lags, attracting only a fraction of the capital required to meet projected needs. For companies and investors willing to act now, this gap represents both a responsibility and an opportunity — to lead in building resilience while capturing a share of one of the defining growth markets of the 21st century. Have a read through the report: https://lnkd.in/duuvbeTC #gic #singapore #climateadaptation #climate #decarbonisation #revenue #growth #business

Want to know the worst kept secret in angel investing? Since 2008, investing in all women teams has remained at 2% of capital, at least in the US according to PitchBook. That is a terrible statistic. Yet, it does reveal opportunities and potential that can give us hope that we can move the dial in significant way. While that data is true, during the same time period, the number of deals for women only team went from 3.7% to 6.4%. The number of women co-founded deals went from 8.5% to 18.7%. The amount of capital for women co-led ventures went 7.1% to 20.8% - an almost tripling of dollars. During this period, more capital has flowed to women co-led ventures with more deals being presented, so how can we leverage this momentum to scale even farther. It's important to note another trend - the support for early stage women led ventures has been scaling dramatically in recent years. In Canada alone, organizations like The51, BDC Thrive Fund, Women's Equity Lab, SheBoot, The Firehood, Accelia Capital, Sandpiper Ventures, MaRS Discovery District, and Spring Collective have been capacity building women founders, women investors, and deploying capital into the ecosystems. Much of this work has been at pre-seed and seed stages. This has fuelled a significant number of ventures at the early stages, and this has been filling the top of the funnel for VC rounds. So, what steps can we take. First, track the data. It's critical to ensure that women led and co-lead deals are tracked and reported. All angels, angel groups, and ventures should ensure that this data is captured via Pitchbook, NACO Canada, Angel Capital Association, and Crunchbase to ensure that the stats, and the momentum, is being tracked. This is captured, for the most part, but we need to ensure all deals are captured. Second, tell the stories. These founders are doing incredible work, so we need to share their vision, their work, and their progress. The more these stories are told, the more we are able to mainstream the perceptions of women led ventures as being investment ready and, in many cases, venture scale. Today, some of these stories are told but so many more can be shared and amplified. Third, provide Support to A Round. This is, in my opinion, the greatest need and opportunity. If more women led and co-led ventures are being funded at pre-seed and seed stages, then we should be moving the dial at VC led A rounds, but we're not seeing the stats move. One contributing element will be to create more intention and structure for post pre-seed and seed stage rounds to help these founders and companies get across to A round. From market expansion to product roadmap to team and leadership, this can be the greatest single opportunity we have in the next 1-3 years. #investinginwomen #genderlensinvesting #angelinvesting #venturecapital #movingthedial #businessforgood #techforgood https://lnkd.in/giZUqVgM

How can we mobilize capital for climate action while addressing local challenges? Brazil and Ecuador offer powerful examples of how innovative financial mechanisms can drive sustainability. Blended finance combines concessional and market-rate capital to reduce risks and attract private investment for high-impact projects. This bridges financing gaps while aligning financial institutions with international sustainability standards, enabling them to address critical issues such as decarbonization and gender diversity. Here are two outstanding examples of successful blended finance in Latin America: Brazil – Sicredi's Solar Energy Initiative - Sicredi, Brazil's largest cooperative financial institution, allocated over BRL 433 million to solar energy projects, financing 7,090 initiatives with a total capacity of 115 MW. - These projects help avoid over 9,000 tonnes of CO₂ emissions each year. - Beyond green finance, Sicredi also addressed gender diversity by increasing female board representation and tackling pay gaps through tailored HR policies. Ecuador – Produbanco's Green Bonds - Produbanco issued Ecuador’s first sustainability bond, valued at $50 million, focusing on decarbonization and green lending. - The initiative aims to grow its green lending portfolio to $75 million, while aligning with international standards like the Task Force on Climate-Related Financial Disclosures (TCFD). - With a clear decarbonization roadmap, Produbanco is on track to reduce emissions across key sectors, including agriculture, fisheries, and energy. This report, published by the Climate Investment Funds (CIF) and IDB Invest, provides deeper insights into the transformative role of financial institutions in advancing sustainability. #blendedfinance #impactinvesting #brasil #ecuador #energytransition