Mútua compartilhou isso
We all know that we are facing a polycrisis threatening our future viability, but is capital stepping up? According to the GIIN (2022), there are $1.1 trillion in assets under management classified as impact investments. To qualify as such, investments needed to have a clearly stated intention for social or environmental benefits, as well as continuous measurement and management of their impact performance throughout the investment cycle. While this figure might initially seem substantial, it represents a mere 1% of total global assets under management. This brings to light a concerning truth: despite the escalating polycrisis and existential threats facing humanity, capital is significantly underutilized in preventing potential catastrophic events. Ironically, these very events have the potential to radically disrupt the capital markets themselves. It prompts one to question how long it will take for asset managers to integrate this scenario into their risk assessment models. "Here is Moloch", as Daniel Schmachtenberger says. However, there is a silver lining in this cloud. In the coming 25 years, we are on the brink of what has been called an “inheritocracy”, where an estimated $100 trillion is expected to shift from the baby boomer generation to their younger heirs, predominantly Millennials and Generation Z. Notably, these younger generations have consistently shown a greater concern for our future existence in various surveys. Simultaneously, many impact investment theses, traditionally perceived as yielding lower returns, are now emerging as highly attractive options for traditional investors. Notable examples of this shift include investments in carbon markets, electric vehicles, and renewable energy. This influx of capital into impact investments brings to the forefront the critical need for drastically upgrading investor's ability to understand societal challenges as complex and multi-faceted, moving from the project-by-project and SDG-flagging logic to a systemic, mission-oriented, polycapital and evidence-based investment approach. This requirement stands as a significant hurdle in the move towards investments that can effectively trigger systems change. At Mútua, we are working to address this challenge by creating the necessary technological infrastructure for a new systemic investment paradigm. If you are interested in this topic and looking for ways to contribute, please reach out to us.