Category: Joots

About This Episode

It’s probably fair to say that the finance industry has not traditionally been a hotbed of innovation.

For hundreds of years bankers and money managers have prioritised values of solidity and stability over thoughts of radicalism and experimentation.

No surprise, then, that amid the volatile and unpredictable disruption posed by climate change, the world of finance has struggled to rise to the challenge.

Thankfully that seems to be changing. The past few years has seen a rapid increase in the number of institutions and individuals joining the sustainability discourse. Some are drawn by the scent of opportunity and profit, others by a feeling of responsibility and stewardship.

Among the early movers was Munib Madni. After a successful career at Morgan Stanley Munib began to sense the tide was changing, personally and professionally. He began to immerse himself in sustainability science and theory, a process that would ultimately lead to the iteration of a new system of fund management. He called it “Panvesting”.

In this two-part conversation, Munib talks about the journey that led to the fresh perspectives and innovative systems that his new firm, Panarchy Partners, brings to the world of ESG and sustainability investing.

And in part two we address the cutting edge of this innovation – the Gigaton Coalition. It’s a strategy, a platform, a call to action that brings together investors, investees and solutions providers in a bid to reduce Asia’s overall greenhouse gas emissions by one gigaton.

About This Episode

So Black Rock has gone weak at the knees. Again.

Its recent decision to drop its focus on ESG investing in favour of a new strategy of “transition investing” seems to be another step backwards in its commitment to the green agenda.  

The decision follows the revelation, barely six months ago, that the world’s largest investor had sharply reduced its boardroom activism, and sharply dialled back its support for environmental and social-related motions at shareholder meetings.

But while the anti-everything-green activists cheer, it’s worth remembering that progress is never linear. Nor continuous. And good ideas rarely die, they just evolve.

Which is why it’s encouraging to see a new initiative out of Singapore that provides an interesting twist to the idea, and the goals, of shareholder activism.

The Panarchy Partners Gigaton Coalition wants to change corporate behaviour not by challenging the management and the board, but by helping them.

Taking the form of a non-profit foundation that brings together investors, companies and solutions providers, the coalition’s ambitious goal is to help companies in Asia accelerate their decarbonisation trajectories, and save a gigaton of carbon emissions along the way.

Oh, and the partnering Asia Gigaton Fund will allow investors to profit from the progress.

Panarchy Partners’ founder Munib Madni explains how.