The Greener Way

FS Sustainability
  • 5.0 (3)
  • Investing
  • Weekly

The Greener Way is your podcast for exploring the big environmental, social and governance questions. Each week, The Greener Way will focus on deep conversations with investment and corporate experts who are deeply engaged in managing the sustainability challenges facing our planet. From climate change to biodiversity, human rights and modern slavery to corporate purpose and governance, we tackle head-on the nuances and trade-offs of our complicated world. The Greener Way is the podcast of FS Sustainability, the premier weekly trade publication that covers how investors and companies are changing real world outcomes across environmental, social and governance issues. This podcast uses the following third-party services for analysis: OP3 - https://op3.dev/privacy

  1. 17h ago

    Powering the Transition

    🏗️ Where is energy transition money really going? ❓Question: As billions of dollars flow into the energy transition, where are investors putting their money, and which infrastructure assets could benefit most from the shift to a lower-carbon and more resilient economy? ✅ Answer: According to Nick Langley, head of real assets at ClearBridge Investments, the energy transition remains firmly on track, but investment priorities are evolving. Investors are moving beyond a narrow focus on green assets and subsidies and instead looking at how entire energy systems can become more reliable, affordable and resilient. Langley says the transition is driving significant investment into physical infrastructure such as electricity grids, power networks, water systems and other essential assets needed to support growing energy demand. Factors such as AI data centres, industrial electrification and renewable energy generation are creating new pressure points that require major infrastructure upgrades. Rather than focusing on individual assets, Langley advocates a systems-led approach to investing. This means identifying bottlenecks and critical infrastructure that can unlock broader economic benefits. While AI and digital technologies continue to attract attention, he believes the most durable opportunities may lie in the real assets that underpin economic activity and support the energy transition over the long term. 🌟 Key insights:🌟 The energy transition story remains intact, but investor priorities are shifting toward affordability and resilience. 🌟 Electricity grids, transmission networks, water infrastructure and other physical assets are attracting significant capital. 🌟 Rising demand from AI data centres is increasing the need for new power infrastructure. 🌟 Investors are increasingly adopting a systems-led approach that focuses on solving bottlenecks. 🌟 Listed infrastructure provides exposure to long-term energy transition themes with relatively stable return profiles. 🌟 Capital is becoming more selective, creating opportunities for higher returns in essential assets. 🚩 Risks:🚩 Rising capital costs could slow infrastructure development. 🚩 Energy demand forecasts may not align with actual technology adoption. 🚩 Policy and regulatory changes can affect infrastructure investment outcomes. 🚩 AI-related investments remain exposed to uncertainty around supply and demand. 🚩 Delays in grid upgrades could create constraints across the energy system. ⚠️ Things to watch:⚠️ Continued investment in power networks, transmission lines and grid modernisation. ⚠️ Growing electricity demand from AI data centres and digital infrastructure. ⚠️ The evolution of energy affordability as a key investment consideration. ⚠️ Increased private capital participation in infrastructure projects. ⚠️ The shift from efficiency-focused investing toward resilience-focused investing. 💡 Why it matters:The energy transition is no longer just about reducing emissions. It is increasingly about building the essential infrastructure needed to support economic growth, energy security and technological innovation. Understanding where capital is flowing can help investors identify opportunities in the assets that will underpin the next phase of the transition. 🎙️ Sources:Nick Langley – head of real assets, ClearBridge Investments Michelle Baltazar – Host, The Greener Way ⏱️ Timestamps:00:35 – Why investors are pouring billions into the energy transition 02:08 – Blackstone's $8.7 billion energy transition fund 03:15 – How the energy transition story is evolving 04:08 – The rise of systems-led investing 05:31 – Why physical assets are back in focus 06:05 – Investing in grids, poles, wires and pipes 07:05 – How data centres are influencing infrastructure spending 08:13 – Who benefits from growing electricity demand? 09:06 – Understanding infrastructure risk and return profiles 10:08 – Different ways to invest in the AI infrastructure boom 11:29 – AI tokenisation and virtual assets explained 12:20 – The supply and demand dynamics for AI tokens 13:10 – Why data centre growth remains a key theme 15:13 – Should investors stick with real assets? 15:30 – Finding bottlenecks and long-term opportunities 16:39 – The shift from efficiency to resilience 17:08 – Why investors are becoming more selective 🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present. This podcast uses the following third-party services for analysis: OP3 - https://op3.dev/privacy

    Powering the Transition

  2. Oct 26

    Championing First Nations Women

    👩🏽‍🦱 How First Nations women are building economic power for future generations ❓Question: How can investing in First Nations women help close Australia's prosperity gap and create stronger communities, businesses and future leaders? ✅ Answer: According to Rick Macourt, founder and managing director of First Nations Economics, First Nations women are often the backbone of their families, communities and local economies, making them critical drivers of long-term social and economic change. Macourt says one of the biggest lessons has been the importance of trust. Through programs such as the Leah Armstrong Scholarship, recipients receive flexible support that allows them to decide what they need most to succeed, whether that's childcare, living expenses, technology or study costs. The approach shifts decision-making power to the women themselves rather than imposing rigid funding rules. As Australia undergoes a major economic transformation through the clean energy transition, Macourt believes First Nations women are well positioned to play a greater role in shaping sustainable businesses, community development and future investment opportunities. He argues that empowering women today helps build stronger families, communities and intergenerational prosperity tomorrow. Key insights: 🌟 First Nations women are often key decision-makers within families and communities. 🌟 Ngarimili was designed to support women throughout multiple stages of life and career development. 🌟 Flexible scholarship funding gives recipients greater control over their own success. 🌟 Financial literacy and entrepreneurship are powerful tools for economic empowerment. 🌟 Investing in women can create benefits that extend across entire communities. 🌟 The renewable energy transition could create new opportunities for First Nations women leaders and entrepreneurs. 🚩 Risks: 🚩 Structural barriers continue to limit educational and economic opportunities. 🚩 Short-term funding models can restrict long-term impact. 🚩 Overly prescriptive scholarship programs may fail to meet recipients' real needs. 🚩 Economic gaps can persist across generations without targeted support. 🚩 Major economic transitions may overlook First Nations voices and leadership. ⚠️ Things to watch: ⚠️ Growing demand for programs designed specifically for First Nations women. ⚠️ New approaches to financial wellbeing and economic self-determination. ⚠️ Increasing focus on entrepreneurship and leadership development. ⚠️ Emerging opportunities linked to the clean energy transition. ⚠️ Greater recognition of First Nations women as drivers of community prosperity. 💡 Why it matters: Closing the First Nations prosperity gap requires more than policy change. It requires investment in the people already creating change within their communities. By supporting First Nations women through education, financial empowerment and leadership opportunities, organisations can help create lasting economic benefits that flow across generations. 🎙️ Sources: Rick Macourt – founder and managing director, First Nations Economics Michelle Baltazar – Host, The Greener Way ⏱️ Timestamps: 00:31 – Why empowering First Nations women matters 01:39 – Understanding the prosperity gap 03:25 – The story behind First Nations Economics 04:38 – Why women are central to community prosperity 05:13 – Introducing the Ngarimili ecosystem 06:25 – Supporting entrepreneurship and leadership 07:43 – Lessons from scholarship recipients 08:13 – Why trust matters more than red tape 09:04 – Rethinking how scholarships are delivered 10:35 – Financial literacy and economic empowerment 11:31 – Building intergenerational wealth 12:28 – Lessons from Indigenous economic models overseas 13:02 – Opportunities in the clean energy transition 13:34 – Sustainability through a First Nations lens 15:23 – Creating ownership, not dependency 16:00 – Building prosperity for future generations 🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present. This podcast uses the following third-party services for analysis: OP3 - https://op3.dev/privacy

    Championing First Nations Women

  3. Oct 19

    Urgent calls for deforestation-free lending

    🌳 Should banks stop financing deforestation in Australia? ❓ Question: What role do Australian banks play in deforestation, and how can financial institutions better manage nature-related risks within their lending portfolios? ✅ Answer: According to Max Hamra, corporate accountability analyst at the Australian Conservation Foundation (ACF), Australia's major banks are linked to significant deforestation activity through agricultural lending, highlighting the growing importance of nature-related financial risks. ACF's latest investigation identified more than 16,000 hectares of deforestation linked to properties financed by major lenders, with impacts including the loss of high-carbon forests and critical habitat for endangered species such as koalas and greater gliders. Hamra argues that banks should increasingly treat deforestation as a core risk management issue rather than solely a sustainability concern. He believes nature-related risks should be embedded within credit and lending processes, with leadership from boards, executives and risk teams helping drive action across institutions. Rather than demanding immediate deforestation-free commitments, ACF advocates a more practical approach. It wants banks to first build the data, systems and stakeholder engagement needed to understand the issue, establish clear pathways for improvement, and then introduce commitments that are achievable and measurable. Hamra says the goal is to align banking practices with Australia's broader environmental objectives, including global commitments to halt nature loss and deforestation by 2030. Key insights: 🌟 More than 16,000 hectares of deforestation were identified in the latest ACF investigation The report linked a significant number of deforestation cases to land with bank-financed mortgages, highlighting the scale of nature-related risks within agricultural lending portfolios. 🌟 All major Australian banks were linked to investigated cases 🌟 Nature risk is becoming a mainstream financial issue 🌟 Investor engagement is accelerating 🌟 Some Australian banks are beginning to develop frameworks 🌟 Strong leadership is critical 🚩 Risks: 🚩 Deforestation creates significant emissions 🚩 Biodiversity loss threatens ecosystems 🚩 Agricultural productivity may suffer over time 🚩 Banks face growing reputational and financial risk 🚩 Progress across the sector remains uneven ⚠️ Things to watch: ⚠️ Deforestation-free commitments require substantial preparation Banks need better data, systems and stakeholder engagement before they can confidently implement and monitor meaningful commitments. ⚠️ Most deforestation identified was linked to agricultural expansion The report found that approximately 99% of investigated clearing related to expanding agricultural activity rather than residential development. ⚠️ Global expectations are rising quickly International banks are increasingly making nature-related and deforestation-related commitments, potentially creating pressure on Australian institutions to follow. ⚠️ Nature loss is moving up the ESG agenda After years of focus on climate emissions, biodiversity and natural capital issues are emerging as major priorities for investors and financial institutions. 💡 Why it matters: As global commitments to halt nature loss by 2030 approach, financial institutions will face increasing pressure to understand how lending decisions impact ecosystems, biodiversity and long-term economic resilience. The debate is no longer whether nature matters to finance, but how quickly institutions can integrate it into decision-making. 🎙️ Sources: Max Hamra – corporate accountability analyst, Australian Conservation Foundation Michelle Baltazar – Host, The Greener Way ⏱️ Timestamps: 00:00 – Why ACF is focusing on banks and deforestation 01:05 – How the investigation was conducted 02:36 – Key findings from the latest report 04:13 – Emissions impact of deforestation 05:29 – What ACF wants banks to do next 07:07 – Why nature risk is rising up the agenda 07:43 – The role of banks' risk teams 09:36 – How Australian banks compare globally 11:50 – Are local banks falling behind? 12:00 – Investor engagement and shareholder pressure 4:22 – Housing, agriculture and land clearing debate 15:57 – Soil health and ecosystem degradation 16:43 – Common misconceptions about ACF's proposals 17:36 – Why commitments should follow preparation 18:16 – Balancing ambition with practical action 🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present. This podcast uses the following third-party services for analysis: OP3 - https://op3.dev/privacy

    Urgent calls for deforestation-free lending

  4. Oct 12

    690 start-ups: climate tech in action

    🌏 Is climate tech the next big investment opportunity in Asia-Pacific? ❓ Question: Why are investors increasingly looking at climate technology, and what should Australian investors consider when assessing climate tech opportunities across Asia-Pacific? ✅ Answer: According to Ayush Kapila, co-founder and operating partner of Vitality Capital Partners, climate technology is becoming a major investment theme because many of the technologies needed to achieve net zero have not yet been fully developed or commercialised. He argues that around 30% to 40% of the technologies required for net zero remain in the prototype stage, creating significant opportunities for investors willing to back innovation. Kapila believes the greatest opportunity sits in Asia-Pacific, which accounts for more than half of global emissions and a large share of future energy demand growth. Rather than viewing climate tech as a niche sustainability investment, he sees it as a broad opportunity to support commercially viable businesses solving everyday problems across energy, transport, food systems, agriculture, water, industry and the circular economy. For investors, success depends not only on the environmental benefits of a technology, but whether it can deliver efficiency gains, competitive costs and strong commercial returns. 🌟 Asia-Pacific is one of the world's largest climate tech opportunities More than half of global emissions originate from the Asia-Pacific region, creating a significant need for technologies that can support decarbonisation while meeting growing energy and infrastructure demand. 🌟 Many net-zero technologies are still being developed Kapila estimates that 30% to 40% of the technologies needed to achieve global net-zero targets remain in the prototype or development stage, creating opportunities for venture capital and private market investors. 🌟 Climate tech extends far beyond renewable energy The sector includes innovations across sustainable aviation fuel, water treatment, food systems, transport, industrial efficiency, circular economy solutions, agriculture and blue economy technologies. 🌟 Cost competitiveness is critical for success Technologies that reduce costs and improve efficiency are more likely to gain widespread adoption than those requiring customers to pay a "green premium." 🌟 Australia's climate tech ecosystem is growing rapidly Vitality Capital Partners identified approximately 690 climate tech companies headquartered in Australia, with a median founding year of 2021, highlighting the sector's strong recent growth. 🌟 Commercial returns remain the priority Kapila argues that climate tech investing does not require sacrificing returns and should be viewed as a commercial growth opportunity rather than solely an impact investment. 🌟 Strong founders often emerge from established industries Many successful climate tech founders have backgrounds in banking, funds management, large corporates and institutional organisations, bringing industry expertise to emerging challenges. 🌟 New capital structures are emerging Initiatives involving institutional investors, government-backed organisations and structured finance are helping bridge funding gaps for climate-related businesses. 🚩 Early-stage investing remains high risk Many climate technologies are still relatively young businesses and face significant execution, commercialisation and scaling challenges. 🚩 Fund size mismatches can limit institutional participation Many climate venture funds are smaller than the typical allocation size required by large superannuation funds, making it difficult for institutions to deploy meaningful amounts of capital. 🚩 Liquidity remains a challenge Venture capital investments often take longer to realise returns, creating potential conflicts with institutional investors' liquidity requirements. 🚩 First-of-a-kind projects carry significant execution risk Capital-intensive projects and emerging technologies require experienced managers and operators to successfully scale businesses. 🚩 Market conditions remain difficult Fundraising for early-stage ventures has become more challenging in recent years, creating additional pressure on managers and founders. ⚠️ Not every climate solution becomes a successful investment Strong environmental credentials alone do not guarantee commercial success. Investors must assess revenue opportunities, scalability and market demand. ⚠️ Technology development timelines remain uncertain Many solutions essential to future decarbonisation pathways have yet to reach commercial maturity. ⚠️ Investor expectations may not align with venture timelines Climate technology investments often require longer holding periods before achieving exits or generating returns. ⚠️ Public perceptions can create barriers Terms such as "climate", "impact" and "sustainability" can attract political or ideological debate despite underlying commercial opportunities. 💡 Why it matters: Climate technology is emerging as one of the most significant investment themes of the net-zero transition. As governments, companies and consumers seek solutions to reduce emissions while maintaining economic growth, investors are increasingly looking at businesses that can deliver both sustainability outcomes and commercial returns. For Australian investors, the rapid expansion of climate tech across Asia-Pacific presents opportunities to access innovation in sectors ranging from energy and transport to food, water and industrial efficiency. However, the sector's early-stage nature means careful manager selection, diversification and risk assessment remain critical. 🎙️ Sources: Ayush Kapila, co-founder and operating partner, Vitality Capital Partners Michelle Baltazar, host, The Greener Way ⏱️ Timestamps: 00:00 – Why climate tech matters for net zero 01:12 – The origins of Vitality Capital Partners 02:00 – Climate tech companies in the portfolio 03:00 – Climate tech's role in an investment portfolio 04:03 – Why emerging technologies matter 05:00 – Australia's 690 climate tech companies 06:09 – Assessing climate tech investment opportunities 07:20 – Commercial demand, regulation and execution risk 07:33 – Who builds successful climate tech businesses? 08:37 – Why more superannuation money isn't flowing into climate tech 09:27 – Fund size and capital allocation challenges 10:34 – Liquidity and exit challenges 11:05 – Emerging investment solutions and structures 12:16 – The biggest misconceptions about climate tech 13:04 – Climate tech as a commercial investment opportunity 13:44 – The future of Vitality Capital Partners 🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present. This podcast uses the following third-party services for analysis: OP3 - https://op3.dev/privacy

    690 start-ups: climate tech in action

  5. Oct 5

    Healthcare's war on waste

    ⚕️ Can hospitals cut emissions by 44%? The surprising case for reusing "single-use" medical devices ❓ Question: How can remanufacturing single-use medical devices help reduce healthcare waste, improve supply chain resilience and lower emissions without compromising patient safety? ✅ Answer: According to Daniel Vukelich, president of the Association of Medical Device Reprocessors (AMDR), healthcare's reliance on single-use medical devices has created significant waste, emissions and supply chain vulnerabilities. While many devices are labelled for single use, remanufacturing companies can clean, validate, test and sterilise eligible products so they can be safely used again. Vukelich argues that remanufacturing offers a practical circular economy solution that reduces costs, cuts healthcare emissions, improves supply chain resilience and recovers valuable materials that would otherwise be discarded. With healthcare accounting for around 5% of global emissions and increasing pressure on global supply chains following COVID-19 and geopolitical disruptions, he believes circular healthcare models will become increasingly important for hospitals, policymakers and investors. 🌟 Healthcare is a major contributor to global emissions If healthcare were a country, it would rank among the world's largest emitters. Healthcare-related activities account for approximately 5% of global emissions, making decarbonisation a growing priority for the sector. 🌟 Circular healthcare can reduce dependence on fragile supply chains COVID-19 exposed vulnerabilities in global medical supply chains. Remanufacturing enables hospitals to extend the life of existing devices and reduces dependence on imported products and raw materials. 🌟 Valuable materials can be recovered and reused Many medical devices contain microchips, rare earth metals, gold and other valuable materials. Remanufacturing helps recover these resources rather than sending them to landfill or incineration. 🌟 Hospitals can significantly reduce procurement costs The remanufacturing industry has delivered substantial savings to healthcare systems by allowing eligible devices to be safely reused rather than constantly replaced with new products. 🌟 Emissions can be reduced by remanufacturing devices closer to home Lifecycle assessments suggest remanufacturing can reduce emissions by around 44% compared with manufacturing entirely new devices because fewer raw materials need to be extracted, processed and transported. 🌟 Scope 3 emissions present a major opportunity Around 70% of hospital emissions originate from supply chains rather than hospital operations. Addressing procurement and medical device lifecycles could have a larger impact than operational changes alone. 🌟 Australia is moving closer to developing a remanufacturing sector Several companies have announced plans to invest in Australian remanufacturing capability, while regulators continue to assess the appropriate framework for medical device reuse and remanufacturing. 🌟 Circular business models could become a competitive advantage Vukelich believes medical technology companies that extend product lifecycles and offer circular solutions are likely to be better positioned as healthcare systems focus more on sustainability and resilience. 🚩 Regulatory frameworks are still evolving Australia is still developing the regulatory settings required to support a larger remanufacturing industry while maintaining patient safety and clinical confidence. 🚩 Existing healthcare procurement models favour single-use products Many purchasing decisions remain focused on upfront unit costs rather than whole-of-life costs, supply chain security and environmental impacts. 🚩 Established business models may resist change Manufacturers that rely on selling new devices may be reluctant to adopt circular approaches that extend product lifespans and reduce replacement rates. 🚩 Clinical participation is critical Remanufacturing programs depend on hospitals consistently collecting and separating eligible devices for reuse. Without clinician engagement, significant benefits can be lost. ⚠️ Healthcare's environmental footprint is larger than many realise Despite healthcare's mission to improve health outcomes, the sector remains a significant source of waste and carbon emissions. ⚠️ Supply chain disruptions are becoming a strategic risk Pandemics, trade tensions, tariffs and geopolitical conflicts continue to create uncertainty in healthcare supply chains, increasing costs and reducing resilience. ⚠️ Sustainability alone will not drive change Vukelich argues that adoption must be supported by strong business and financial cases, not environmental benefits alone. ⚠️ Procurement practices may determine the pace of adoption Unless healthcare buyers actively reward sustainable and circular solutions, progress towards circular healthcare models may remain slow. 💡 Why it matters: Healthcare is increasingly being viewed through both a sustainability and supply chain lens. As hospitals seek to reduce costs, improve resilience and cut emissions, circular approaches such as medical device remanufacturing are attracting greater attention globally. For investors, healthcare providers and policymakers, the transition from a linear "take-make-waste" model to a circular healthcare system could create new commercial opportunities while helping address waste, carbon emissions and resource constraints. 🎙️ Sources: Daniel Vukelich, president, Association of Medical Device Reprocessors (AMDR) Michelle Baltazar, host, The Greener Way ⏱️ Timestamps: 00:00 – Why healthcare emissions matter 01:25 – What circular healthcare means 01:49 – The rise of single-use medical devices 02:35 – What remanufacturing and reprocessing involve 03:34 – Common misconceptions about reuse and recycling 04:15 – How COVID changed the conversation 05:00 – Types of devices that can be remanufactured 06:12 – Cost savings and supply chain resilience 07:33 – Australia's emerging remanufacturing opportunity 08:40 – The emissions benefits of remanufacturing 09:37 – Healthcare's carbon footprint and Scope 3 emissions 10:26 – Barriers and industry resistance 11:49 – Regulation, procurement and policy priorities 12:49 – The future of circular healthcare 13:36 – Potential benefits for developing countries 14:09 – Sustainability, business and healthcare waste reduction 🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present. This podcast uses the following third-party services for analysis: OP3 - https://op3.dev/privacy

    Healthcare's war on waste

  6. Sep 28

    🌿 The climate capital Australia can't afford to lose

    🌿 Australia's climate capital challenge: Why investors want to spend billions but can't find enough opportunities ❓ Question: Why are Australia's largest investors struggling to deploy more climate capital locally, and what needs to change to attract the investment required for the country's net-zero transition? ✅ Answer: According to Rebecca Mikula-Wright, chief executive of the Investor Group on Climate Change (IGCC), institutional investors remain highly committed to climate-related investing despite geopolitical uncertainty, energy security concerns and market volatility. Australia's superannuation funds and institutional investors increasingly view climate change as both a financial risk and a major investment opportunity. However, while investor appetite for climate solutions continues to grow, there remains a shortage of investable opportunities that meet required risk and return thresholds. Mikula-Wright argues the challenge is not a lack of capital but a lack of policy certainty, project readiness and market signals that allow large-scale investment to flow efficiently. With Australia's super funds managing approximately $4.5 trillion and the nation requiring up to $630 billion of investment to meet its 2035 climate targets, she says getting policy settings right will determine whether that capital stays in Australia or moves elsewhere. 🌟 Clean energy remains the dominant climate investment theme Renewable energy generation, transmission infrastructure and energy storage continue to attract the strongest investor interest. These sectors are viewed as critical to both emissions reduction and future energy security. 🌟 Climate adaptation is emerging as a major opportunity Investors are increasingly moving beyond mitigation and emissions reduction to focus on adaptation and resilience. Around a third of investors now view climate adaptation as an investment opportunity rather than simply a risk that must be managed. 🌟 Asia is becoming more attractive for climate capital Investor interest in climate opportunities across Asia is growing rapidly. As Australia competes for global capital, investors are increasingly evaluating overseas markets that offer stronger policy certainty and larger investment pipelines. 🌟 Energy security is reshaping investment decisions Geopolitical tensions and concerns about energy supply are reinforcing support for electrification, renewable infrastructure and low-carbon fuels. Climate investment is increasingly being viewed through a national security lens. 🌟 Climate risks are being integrated into mainstream portfolios Rather than limiting sustainability considerations to dedicated ethical funds, investors are increasingly embedding climate risks and opportunities across their entire portfolios and investment processes. 🌟 Climate adaptation finance could become a significant new asset class Historically, governments have funded adaptation projects. As private investment markets mature, opportunities are emerging in infrastructure, resilience solutions and technologies designed to address physical climate risks. 🌟 Stewardship remains a key tool for investors Shareholder engagement, voting and corporate stewardship continue to play an important role in influencing company behaviour. However, investors increasingly recognise that broader policy and market reforms are needed to drive system-wide change. 🌟 Mandatory climate reporting could improve investment decisions As climate disclosure frameworks develop, investors expect to gain better visibility into how companies identify, manage and prepare for climate-related risks and opportunities. 🚩 A shortage of investment-ready projects remains a major barrier Many investors say they want to allocate more capital but cannot find enough climate-aligned investments with suitable risk-return characteristics. This remains one of the biggest obstacles to scaling climate finance. 🚩 Policy uncertainty continues to slow capital deployment Investors remain concerned about whether climate and energy policies will remain consistent across political cycles. Without long-term certainty, capital can remain on the sidelines or move overseas. 🚩 Slow approvals and regulatory bottlenecks are creating delays Project approval processes, tax uncertainties and outdated regulatory frameworks are slowing the development of climate-related infrastructure and reducing the number of investable opportunities. 🚩 Australia faces growing competition for global capital Investors have choices about where to deploy funds. If Australia cannot create an attractive investment environment, climate capital may increasingly flow to other regions. ⚠️ Capital availability does not guarantee investment Mikula-Wright stresses that having trillions of dollars available for investment does not automatically mean that funds will be deployed. Effective policy design and implementation remain critical. ⚠️ Weak demand signals can undermine climate investment Current market incentives are not always strong enough to stimulate demand for climate solutions, making it harder for projects to achieve commercial viability. ⚠️ Delays to the energy transition could impact long-term competitiveness Failure to accelerate decarbonisation, clean energy deployment and climate adaptation may weaken Australia's ability to compete for future investment and trade opportunities. 💡 Why it matters: Climate investing is moving from a niche sustainability strategy to a mainstream capital allocation issue. Australia's largest institutional investors are signalling that significant amounts of money are available for clean energy, climate adaptation and decarbonisation projects, but that capital needs investment-ready opportunities and stable policy settings. As Australia works toward its 2035 climate goals, the ability to attract and deploy climate capital may play a crucial role in determining the country's economic competitiveness, energy security and long-term prosperity. 🎙️ Sources: Rebecca Mikula-Wright, chief executive, Investor Group on Climate Change (IGCC) Riddhima Talwani, host, The Greener Way ⏱️ Timestamps: 00:00 – Why Australia needs climate investment capital 01:03 – Where climate sits among investor priorities 02:38 – Major climate investment themes driving capital 03:13 – Growth in clean energy and adaptation investing 04:04 – Why investors are looking increasingly towards Asia 05:00 – The gap between investor appetite and available opportunities 06:02 – Policy certainty and barriers to capital deployment 07:13 – How investors are engaging with policymakers 08:16 – The shift from ethical funds to portfolio-wide ESG integration 10:02 – Stewardship, shareholder voting and climate engagement 11:42 – What investors want from mandatory climate reporting 13:10 – IGCC's policy priorities and climate agenda 14:03 – National adaptation planning and climate finance 15:08 – Clean energy, low-carbon fuels and industrial decarbonisation 16:00 – Australia's role in supporting Asia's transition 16:35 – Why policy settings will determine where capital flows 17:08 – IGCC Summit and final remarks FS Sustainability is a media partner of the IGCC Summit 2026 to be held on the 24-25 November at Ilumina Sydney. To register, click here. 🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present. This podcast uses the following third-party services for analysis: OP3 - https://op3.dev/privacy

    🌿 The climate capital Australia can't afford to lose

  7. Sep 21

    Ethinvest on impact and shareholder activism

    🔥 Ethinvest: A call to make impact investing accessible for everyday Australians ❓ Question: Impact investing has matured significantly over the past decade, but many of the most attractive opportunities remain out of reach for everyday investors. What is changing in the impact investing landscape, and how can investors use both their capital and their shareholder influence to create positive environmental and social outcomes? ✅ Answer: According to Trevor Thomas, managing director of Ethinvest, impact investing is evolving from a niche market into an increasingly sophisticated asset class that is attracting institutional-grade fund managers and larger pools of capital. While impact investing has traditionally been dominated by wholesale investors, efforts are underway to make high-quality impact opportunities more accessible to retail investors. Thomas explains that true impact investing differs from simply buying shares in companies with positive environmental or social credentials. Impact investments are intentionally designed to address a specific problem, measure the outcomes achieved and provide capital directly to projects that generate positive change. This can include renewable energy, affordable housing, environmental restoration and social impact initiatives. Alongside capital allocation, Thomas argues investors should not underestimate the power of shareholder engagement. Over the past decade, shareholder activism and engagement campaigns have helped drive change across issues including climate disclosure, gambling, plastic waste, deforestation and biodiversity protection. Investors increasingly have two powerful tools available: where they invest their money and how they use their voice as shareholders. 🌟 Impact investing is becoming more institutional and mainstream The first generation of impact investments was often innovative but relatively small in scale. Today, institutional fund managers are launching larger, more diversified impact funds with the potential to deliver market-like returns while creating measurable environmental and social outcomes. 🌟 True impact investing goes beyond buying ethical shares Thomas distinguishes impact investing from traditional share investing. When investors purchase listed shares, the money typically goes to another shareholder. Impact investments, by contrast, direct capital towards creating new projects, assets and solutions that address social or environmental challenges. 🌟 Renewable energy and environmental infrastructure remain major themes Some of the most prominent opportunities today include renewable energy infrastructure, battery storage, environmental water projects and decarbonisation initiatives. These investments are attracting increasing interest as governments, institutions and investors seek practical solutions to sustainability challenges. 🌟 Democratising impact investing remains a key goal One of the biggest challenges facing the sector is accessibility. Many of the highest-quality impact funds remain restricted to wholesale investors. Thomas says efforts are underway to create investment vehicles that combine leading impact funds into structures that retail investors can access more easily. 🌟 Superannuation funds could play a larger role Large super funds are increasingly allocating capital towards impact investments and are becoming more active participants in addressing challenges such as climate transition, clean technology development and affordable housing at scale. 🌟 Shareholder activism can drive meaningful change Investor engagement has played a significant role in influencing corporate behaviour. Thomas highlights campaigns involving climate change, banking policies, biodiversity protection, plastic reduction and gambling exposure, demonstrating that investors can create change even when shareholder resolutions do not ultimately succeed. 🌟 Success is not always measured by winning the vote Some engagement campaigns fail to achieve immediate outcomes but still generate important progress. Thomas points to climate-related shareholder advocacy that led companies to improve transparency and disclose previously unavailable information, helping investors better understand risks and corporate strategies. 🚩 Retail investors still face access barriers Many impact investments involve long investment horizons of seven to ten years. These illiquid structures can be difficult for retail investors to access, creating a gap between investor demand and available products. 🚩 Patience is often required Unlike publicly traded shares, many impact investments require investors to commit capital for extended periods before outcomes and returns are realised. This remains one of the sector's biggest structural challenges. ⚠️ Not every impact investment succeeds While many impact investments have generated positive outcomes and competitive returns, others have faced challenges. Some projects were disrupted by external events such as COVID-19, highlighting the importance of diversification and careful manager selection. ⚠️ Impact measurement remains critical As the sector grows, investors need confidence that managers are measuring and reporting outcomes consistently. Intentionality, measurable impact and additionality remain key characteristics that distinguish genuine impact investments from broader sustainability strategies. 🌟 Investors no longer need to sacrifice returns Thomas believes one of the industry's biggest misconceptions is that ethical and impact investing inevitably leads to weaker financial performance. In most asset classes, investors can now access strategies that seek both commercial returns and measurable impact outcomes. 💡 Why it matters: Impact investing is moving beyond its early experimental phase and becoming a more established part of the investment landscape. As institutional managers bring larger, more sophisticated products to market, access is gradually expanding and the opportunity set is widening. At the same time, investors are increasingly recognising that creating impact is not just about where money is invested, but also how shareholder rights are exercised. Understanding both capital allocation and engagement strategies may become increasingly important as investors seek to balance financial outcomes with positive environmental and social change. 🎙️ Sources: Trevor Thomas, managing director, Ethinvest Michelle Baltazar, host, The Greener Way ⏱️ Timestamps: 00:00 – Why impact investing needs to be democratised 00:17 – The evolution of impact investing 01:33 – What makes an investment a true impact investment 03:02 – Standout impact funds and recent opportunities 04:02 – The challenge of retail investor access 05:00 – Wholesale versus retail impact investing 06:38 – The role of super funds in driving impact 07:23 – Shareholder activism and investor influence 08:41 – Using shareholder resolutions to create change 10:07 – Lessons from climate engagement campaigns 11:00 – Biodiversity and salmon farming advocacy 11:49 – Impact investment performance and outcomes 12:37 – Why scale matters in impact investing 13:29 – The myth that impact investing underperforms 14:08 – Final thoughts and key takeaways 🌿 We record on Gadigal Land and pay our respects to the traditional custodians of country and elders past and present. This podcast uses the following third-party services for analysis: OP3 - https://op3.dev/privacy

    Ethinvest on impact and shareholder activism

  8. Sep 14

    🌡️ Super El Niño: Winners and losers

    ☀️ Super El Niño, AI and water scarcity: The investment trends that could reshape the ASX ❓ Question: How could a potential Super El Niño, rising temperatures and the rapid expansion of AI data centres create new investment opportunities and risks for investors over the coming decade? ✅ Answer: According to Claudia Kwan, managing partner and portfolio manager at North Star, investors are entering an unprecedented period where climate change, extreme weather patterns and AI-driven infrastructure demand are colliding. A potential Super El Niño could affect water availability, energy demand, supply chains, commodity prices and capital allocation decisions across the economy. Kwan believes investors who understand these interconnected trends will be better positioned to identify the next generation of winners, while those relying solely on traditional investment metrics may miss significant opportunities. 🌟 Investors are facing a climate event without historical precedent While Super El Niño events have occurred before, Kwan notes that they have never occurred alongside today's backdrop of rising global temperatures and accelerating climate change. This makes forecasting more difficult and increases uncertainty for investors. 🌟 AI data centres are becoming a major economic force The surge in AI adoption is driving unprecedented demand for data centres, placing increasing pressure on energy systems, infrastructure and water resources. This is creating new investment themes that extend well beyond the technology sector. 🌟 Water may become one of the most valuable investment themes Kwan argues that water remains overlooked compared with energy and electrification. Changing rainfall patterns, droughts and flooding could create both risks and opportunities across industries, making water-related infrastructure and solutions increasingly important. 🌟 Supply chain disruptions are becoming more frequent Extreme weather events such as cyclones are already affecting manufacturing and logistics networks. Investors can no longer view climate disruptions as isolated events because their impacts are spreading across global supply chains. 🌟 Climate adaptation is creating new commercial opportunities As businesses adapt to changing environmental conditions, demand is increasing for technologies and services that improve efficiency, resilience and resource management. Companies providing these solutions may benefit from long-term structural growth. 🌟 Rising commodity prices are helping circular economy businesses Higher resource prices are improving the economics of recycling, reprocessing and waste recovery. Activities that were previously uneconomic are becoming commercially viable as demand for critical materials increases. 🌟 Investors may need to rethink how they value growth companies Traditional measures such as earnings, free cash flow and balance sheet strength remain important, but Kwan believes investors should also evaluate market size, adoption potential and unit economics when analysing emerging industries. 🌟 The next decade could create entirely new market leaders Kwan expects many future ASX success stories to come from sectors linked to electrification, climate adaptation, digital infrastructure and resource efficiency. She believes the composition of the ASX 200 could look very different by 2035. 🚩 Funding the transition remains a major challenge The enormous investment required for energy infrastructure, data centres and climate adaptation will require substantial capital. Investors need to pay close attention to funding sources and the cost of capital. 🚩 Volatility is likely to increase More extreme weather events and shifting climate patterns may result in greater uncertainty across financial markets, creating both opportunities and downside risks. 🚩 Climate risks now affect almost every sector From supply chains and insurance costs to resource availability and consumer spending, climate-related impacts are becoming embedded across the broader economy rather than affecting individual industries. ⚠️ Black swan events may become more common Kwan warns that investors should prepare for unexpected climate-related and capital-market shocks. Events previously considered rare could occur more frequently in a world shaped by climate change and rapid technological transformation. ⚠️ Investors who ignore emerging data could fall behind As climate, weather and infrastructure data become increasingly important drivers of performance, investors who fail to monitor these developments risk mispricing opportunities and threats. 💡 Why it matters: Climate change is no longer simply an environmental issue. It is becoming a powerful investment driver that influences energy demand, water resources, supply chains, capital flows and market valuations. Kwan's research suggests that understanding the interaction between Super El Niño, AI infrastructure growth and climate adaptation could help investors identify future winners while better managing long-term portfolio risks. 🎙️ Sources: Claudia Kwan, managing partner and portfolio manager, North Star Michelle Baltazar, host, The Greener Way ⏱️ Timestamps: 00:00 – How Super El Niño could reshape investment markets 00:45 – Introducing North Star and impact investing 01:44 – What defines a Super El Niño? 02:34 – Why investors should pay attention now 04:04 – Climate adaptation and investment opportunities 05:05 – Why water is an overlooked investment theme 05:45 – AI infrastructure and supply chain impacts 06:46 – Commodity prices and circular economy opportunities 07:26 – Rethinking traditional investment metrics 08:55 – Evaluating growth opportunities in emerging industries 09:52 – M&A activity and industry consolidation 11:40 – Claudia's prediction for the ASX in 2035 12:04 – Funding challenges and key investment risks 13:37 – Black swan risks and increasing volatility 14:55 – Final investor takeaways 🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present. https://www.fssustainability.com.au/ This podcast uses the following third-party services for analysis: OP3 - https://op3.dev/privacy

    🌡️ Super El Niño: Winners and losers
See All (223)

Trailer

5
out of 5
3 Ratings

About

The Greener Way is your podcast for exploring the big environmental, social and governance questions. Each week, The Greener Way will focus on deep conversations with investment and corporate experts who are deeply engaged in managing the sustainability challenges facing our planet. From climate change to biodiversity, human rights and modern slavery to corporate purpose and governance, we tackle head-on the nuances and trade-offs of our complicated world. The Greener Way is the podcast of FS Sustainability, the premier weekly trade publication that covers how investors and companies are changing real world outcomes across environmental, social and governance issues. This podcast uses the following third-party services for analysis: OP3 - https://op3.dev/privacy

Information

  • Creator
    FS Sustainability
  • Years Active
    2022 - 2026
  • Episodes
    223
  • Rating
    Clean
  • Copyright
    © Copyright 2026 FS Sustainability
  • Show Website
    The Greener Way

You Might Also Like