Review of 21st Century Investing

– “21st Century Investing: Redirecting Financial Strategies to Drive Systems Change” by William Burckart and Steve Lydenberg explores the concept of system-level investing, where investors consider nonfinancial factors in addition to risk and return.
– System-level investors set explicit goals for their impact on systems, such as social, financial, and environmental issues.
– The book emphasizes the importance of systemic issues in investment returns, citing examples like social unrest and climate change.
– The authors provide a roadmap for becoming a system-level investor, including leveraging advanced techniques.
– Practical case studies are presented to illustrate how investors focus on long-term value creation, ESG integration, and influencing public policy.
– The book lacks references to governance, raising questions about the assurance of social and environmental commitments.
– There is a lack of hard data on the size of the sustainable and system-level investing universe, despite its significant presence in global markets.
– System-level investing shares similarities with impact investing and utilizes techniques found in the ESG toolbox.
– The book acknowledges challenges faced by sustainable investors, such as data inconsistency and greenwashing.
– Overall, “21st Century Investing” offers valuable insights and tools for investors looking to incorporate nonfinancial considerations into their strategies and make a positive impact in the world.