The Shifting Paradigm in Responsible Investing
Carolyn Kissane, Associate Dean of the NYU SPS Center for Global Affairs and the Founding Director of the NYU SPS Energy, Climate Justice and Sustainability Lab, is highlighted on Fast Company for a panel on ESG’s impact of responsible investing.
“ESG-focused investment must reckon with the Improvers, those companies — from sectors like fossil fuels, mining, and utilities — that (like it or not) will power the world for decades to come. Underestimating the critical role of these Improvers in driving sustainable development means investors could miss out on opportunities. “I’m a little opposed to this idea of excluding entire industries,” said Kissane. “Once you understand our very complex energy system, it’s hard to say there shouldn’t be any investment in particular types of industry.”
These “dirty”-but-necessary companies face risks as the world transitions. Therefore, this Improvers category focuses on those companies that can change with the times. Companies building resilience for the future — whether adapting to new regulations or changes in consumer behavior — should, in theory, outperform those that aren’t, Kissane explained. “And companies striving for improvements typically don’t just improve on one dimension, but on multiple dimensions,” she added. “This makes them very good long-term investment opportunities.”
