Answering the Call
Recently, I was involved in a discussion about whether or not ESG and sustainable investing have become mainstream. My instant response was yes, it has. But after stopping to think it over a bit more, I realized that there is a more important question: Where are we in the battle for the livable future of our planet?
As a 25+ year veteran of Wall Street, capital markets and investment management, I certainly understand the motivation behind the question; the answer is critical to how the investment product is designed and marketed. And the tangential questions around how to measure the effectiveness and impact of these investment strategies are, of course, very important as well as are the challenges around often confusing and inconsistent language of the various flavors of SRI, ESG, Sustainable, and Impact investing. And finally, the data, methods and models can evolve and improve too if these investment products will be successful and live up to their potential. Great and worthy questions, all of them. Having said that, as a father of a four year old, and a longtime outdoorsman, I know there is no better time than now to narrow my focus and dig in, roll up my sleeves, and get to work on what I think are the most important questions of our lifetime: Where are we in the battle for the livable future of our planet? What will we do next? How can I contribute?
In a world that seems to have gone nuts, being concerned, recycling my waste, and occasionally using renewable power isn’t enough. While I do think sustainable investing is now mainstream, and that we have passed the tipping point, I want to understand where we go from here. To be certain, we are already fifty years into the battle of this multi-generational, secular shift. In historical context, Congress passed the Clean Air Act in 1970. The passing of this historic legislation perhaps marks the nadir of air quality in the US. Of course, this is not merely an American problem; it is global. Historical data isn’t great, but it is well documented that changes in our collective behavior have markedly improved air quality in the US since then. Also, to be sure ESG and sustainable frameworks are much more than clean air and emissions, including chemical, health and safety, regulatory, climate, data and methods and models, greener living, waste and water, and much more.
The point is: when measuring and judging (no small task in itself) where we are in this immensely important battle, it’s clear that we have substantial challenges ahead. The climate crisis makes it imperative that we quickly, consistently, and substantially reduce carbon if we are going to leave a livable planet to the next generation. As big a challenge as this is, I’m optimistic. I’m inspired. I see great minds, awesome businesses, and thriving nonprofits leading the way. The State of California has provided a great regulatory framework for an improved sustainable future. I have never witnessed a greater sea change than what I am observing now. I see push, pull, and demand for these positive changes in every industry. I see “animal spirits” awakened by the horrific wildfires in Australia, California, and elsewhere. One can only hope that these catastrophes and the tremendous loss of life they have caused serve as a useful, albeit sad, catalyst to change behavior, develop solutions, and shift the probability of a positive outcome to the favor of a very livable, healthy planet.
To all those thought leaders and scientists who have been hard at work for many years on solutions and answers to the questions: Where are we in the battle for the livable future of our planet? And, What will we do next? Thank you. Thank you. Thank you. I heard your call to action. You are the reason why SRI, ESG, Sustainable and Impact investing are now mainstream. Let's keep this discussion prominent and continue to answer that call. Every time someone joins, the effort grows and the call to action is amplified. It will take our collective effort, energies, and entrepreneurial zeal to make this happen.
Craig Sulzburgh - 14 January, 2020