The Greener Way

FS Sustainability
  • 5.0 (3)
  • Investing
  • Updated 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. 4d ago

    🌿 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

  2. 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

  3. 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

  4. Sep 7

    Next wave in ocean investing

    🌿 Why investors may be overlooking one of the biggest risks in their portfolios ❓ Question: If the ocean underpins climate stability, food security, global trade and biodiversity, why has it remained largely absent from investment frameworks, and how can investors better account for ocean-related risks and opportunities in their portfolios? ✅ Answer: According to Sudip Hazra, director of the First Sentier MUFG Sustainable Investment Institute, the ocean is the world's largest natural asset class but remains one of the least understood by investors. Many investors already have significant exposure to ocean-related risks because industries across food production, tourism, shipping, infrastructure and consumer goods depend on healthy marine ecosystems. Hazra argues that oceans should be viewed as critical economic infrastructure rather than an environmental externality. By better understanding these dependencies, investors can improve risk management, identify new opportunities and support the transition to a more sustainable blue economy. 🌟 The ocean underpins far more of the economy than many investors realise Hazra explains that ocean health influences a wide range of industries, even those not traditionally associated with marine assets. Every diversified investment portfolio is likely to contain companies that depend on oceans, waterways and marine ecosystems. Rather than sitting outside portfolios as an environmental concern, ocean-related risks and opportunities are already embedded within many existing investments. 🌟 Natural marine assets deliver significant economic value The report highlights the Great Barrier Reef as an example of a natural asset that generates substantial economic activity. Beyond tourism, marine ecosystems such as coral reefs, mangroves and seagrass meadows provide coastal protection, support fisheries, store carbon and help sustain local economies. Hazra argues these assets should be recognised as economic infrastructure rather than simply environmental features. 🌟 Ocean exposure exists across unexpected sectors Investors often assume ocean-related risks are confined to fisheries or shipping. However, Hazra points to examples such as pet food manufacturers whose supply chains depend on healthy marine biodiversity. As a result, companies in seemingly unrelated sectors are increasingly recognising the business value of maintaining healthy ocean ecosystems. 🌟 Better frameworks can improve investment decision-making To help investors identify and manage ocean-related risks, the institute developed the Ocean Framework report. The framework is designed to help investors assess dependencies, evaluate risks, engage with portfolio companies and allocate capital more effectively. It includes engagement questions and sector-specific guidance for industries with significant ocean exposure. 🌟 Super funds can help close the blue finance funding gap Hazra believes Australian super funds have an important role to play in accelerating investment into ocean-related solutions. This includes supporting investment-ready projects, improving data quality and engaging with companies on practical sustainability issues that affect marine ecosystems. Effective engagement can also influence policy outcomes and drive behavioural change across industries. 🌟 Ocean investing is closely linked to climate, biodiversity and food security Rather than being a standalone sustainability theme, ocean health supports several of the most important long-term investment trends. Hazra argues that investors focused on climate resilience, biodiversity protection, food security and long-term value creation should also consider ocean-related risks because these challenges are deeply interconnected. 🚩 A lack of data continues to limit investment One of the biggest barriers to ocean investing is the absence of consistent data and widely adopted frameworks. Investors often struggle to quantify ocean-related risks, resulting in underpricing of environmental impacts and underinvestment in solutions. Closing these data gaps is essential to improving capital allocation. 🚩 Governance remains fragmented Unlike climate reporting, ocean-related regulation and disclosure frameworks remain relatively immature. Hundreds of overlapping policies and varying levels of enforcement can create uncertainty for investors seeking clarity around risks, standards and accountability. ⚠️ Ocean-related risks may emerge sooner than investors expect Hazra cautions that ocean-related issues should not be viewed solely as long-term concerns. Marine pollution, biodiversity loss and water contamination can create immediate financial, operational and reputational risks for companies. These risks may affect supply chains, product availability and business profitability far sooner than many investors anticipate. ⚠️ Pollution and legal liabilities can become financially material The interview highlights PFAS, or "forever chemicals", as an example of how poor environmental management can lead to significant litigation risks and financial impacts. Investors who fail to understand these exposures may underestimate potential liabilities within portfolios. 🌟 Looking ahead, oceans may become an increasingly important investment theme Hazra believes investors are beginning to recognise that ocean health is fundamental to long-term economic resilience. As understanding improves and frameworks mature, investors may increasingly integrate ocean considerations into portfolio construction, stewardship activities and risk management processes. He argues that healthy oceans are not merely an environmental goal but a prerequisite for sustainable economic growth. 💡 Why it matters: Ocean health supports critical economic systems including climate regulation, food production, global trade and biodiversity. Yet despite its importance, oceans remain underrepresented within traditional investment analysis. Hazra's research suggests investors may already be exposed to significant ocean-related risks without fully recognising them. As data improves and awareness grows, the ability to identify ocean dependencies and incorporate them into investment decisions could become an increasingly important part of managing risk, protecting long-term returns and supporting a more sustainable global economy. 🎙️ Sources: Sudip Hazra, director, First Sentier MUFG Sustainable Investment Institute Michelle Baltazar, host, The Greener Way ⏱️ Timestamps: 00:00 – Why oceans should be viewed as economic infrastructure 01:15 – Introducing the Ocean Framework report 02:00 – Why investors already have ocean exposure 04:23 – Examples of ocean assets hidden in portfolios 05:28 – Coral reefs, biodiversity and business dependency 07:00 – Why oceans have been overlooked by investors 08:51 – Understanding the blue finance funding gap 10:17 – Climate change, oceans and investment implications 11:28 – How super funds can help close the funding gap 13:00 – Policy engagement and reducing marine pollution 14:37 – Responding to short-term investment concerns 15:21 – The financial risks of marine pollution 17:00 – Where investors should start integrating ocean risks 18:15 – The Ocean Framework and engagement toolkit 20:15 – Final messages for investors and super funds 🌿 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

    Next wave in ocean investing

  5. Aug 31

    Financial inclusion at a crossroad

    🌱 Financial inclusion in the age of AI: Why access matters more than ever ❓ Question: As artificial intelligence transforms financial services, how can the industry use technology to improve financial inclusion, and why should sustainability professionals view access to finance as a core sustainability issue? ✅ Answer: According to Stuart White, executive director of business development at Impax Asset Management, financial inclusion extends far beyond simply having a bank account. It encompasses access to affordable financial products and services, including savings, credit, insurance, investments and retirement solutions. While Australia has one of the world's highest rates of financial account ownership, significant challenges remain around financial literacy, affordable advice, retirement preparedness and access to suitable financial products. White argues that AI and technology could help narrow these gaps by making financial services more personalised, accessible and cost-effective. However, real progress will require strong governance, diversity of thought in AI development, and a greater focus on what he calls "human sustainability" alongside environmental sustainability. 🌟 Financial inclusion goes far beyond banking White says financial inclusion is about ensuring people can access affordable financial products throughout their lives. That includes bank accounts, savings products, fair-priced credit, insurance, investments and retirement savings solutions. Importantly, financial inclusion also involves education and helping people better understand increasingly complex financial decisions. 🌟 Australia remains a global leader in retirement savings Drawing on his experience with the UK's pension system, White points to Australia's compulsory superannuation framework as a leading example of long-term financial inclusion. While the UK has made significant progress through auto-enrolment pension schemes, Australia continues to demonstrate how consistent retirement contributions can improve financial outcomes across generations. 🌟 AI could dramatically lower the cost of financial advice One of the biggest opportunities presented by AI is the potential to make financial guidance accessible to more people. White notes that hybrid and technology-enabled advice models have already significantly reduced costs compared with traditional financial advice. As AI tools become more sophisticated, consumers may gain access to personalised financial support at a fraction of today's cost. 🌟 Personalisation could improve access to financial products AI has the potential to create more accurate credit assessments and better match people with suitable financial products. From lending and mortgages to savings and investment solutions, technology may help providers deliver services tailored to individual needs rather than relying on broad demographic assumptions. 🌟 Governance and safeguards remain critical While AI creates opportunities, White cautions that risks are growing at the same time. Cybercrime, deepfakes, scams and algorithmic bias all present challenges that must be addressed through strong governance frameworks. He argues that human oversight remains essential to ensure AI systems operate fairly and responsibly. 🌟 Diversity helps reduce bias in financial technology White is a strong advocate for diversity and inclusion across financial services. When designing AI systems, he believes diverse teams are better positioned to identify blind spots and reduce unconscious bias in algorithms. Diversity of thought, experience and backgrounds plays an important role in creating financial products that better serve society as a whole. 🌟 Financial inclusion supports economic growth Greater access to financial services benefits not only individuals but entire economies. White argues that helping more people save, invest and build financial resilience creates stronger communities, improves intergenerational wealth transfer and contributes to long-term economic prosperity. 🌟 The investment industry can play a larger role Institutional investors are increasingly recognising financial inclusion as part of a broader sustainability agenda. White says access to finance is one of the key sustainability themes considered by Impax Asset Management and should be viewed both as a societal opportunity and an investment consideration. 🌟 Sustainability is becoming more pragmatic and commercial White believes sustainability is entering a new phase. Rather than being driven primarily by ideology, sustainability is increasingly being linked to practical concerns such as energy security, economic resilience, supply chains and financial wellbeing. This pragmatic approach is helping organisations connect sustainability outcomes with commercial value creation. 💡 Why it matters: Much of the sustainability conversation focuses on climate change, biodiversity and decarbonisation. However, financial inclusion is equally important for creating resilient communities and sustainable economies. As AI reshapes financial services, organisations have an opportunity to improve access to affordable advice, credit, savings and retirement solutions. For sustainability professionals, the challenge is ensuring new technologies are designed responsibly and deliver benefits fairly across society. White argues that "human sustainability" should become a permanent part of boardroom discussions, sitting alongside environmental priorities as a core pillar of long-term value creation. 🎙️ Sources: Stuart White, executive director of business development, Impax Asset ManagementMichelle Baltazar, host, The Greener WayImpax Asset ManagementNest (National Employment Savings Trust) ⏱️ Timestamps: 00:24 Introduction to Stuart White and financial inclusion 03:00 Defining financial inclusion beyond bank accounts 04:35 The biggest global financial inclusion gaps 06:31 How AI can improve access to financial services 08:13 Governance, cybersecurity and AI risks 09:30 Diversity and bias in AI development 11:40 How financial inclusion benefits economies 13:33 Creating jobs and investing for future prosperity 15:11 Practical lessons for sustainability professionals 16:29 Why sustainability is becoming more commercial and pragmatic 18:40 The case for human sustainability 🌿 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

    Financial inclusion at a crossroad

  6. Aug 24

    When energy security is the new currency

    🔥 Climate Investors Have a New Obsession: Energy Security ❓ Question: As geopolitical tensions rise, physical climate risks intensify and energy systems undergo rapid transformation, how are institutional investors approaching climate investing in 2026, and where do they see the biggest opportunities and challenges ahead? ✅ Answer: According to Lucian Peppelenbos, climate and biodiversity strategist at Robeco, institutional investors remain committed to climate investing, but their motivations are evolving. While climate change remains an important consideration, investors are increasingly focused on performance, energy security and managing physical climate risks rather than pursuing net-zero objectives for their own sake. The findings come from Robeco's 2026 Global Climate Investing Survey, which surveyed 300 institutional investors representing US$35 trillion in assets. Peppelenbos argues that climate investing is entering a more mature phase. Rather than being driven primarily by ambition and commitments, investors are now concentrating on practical investment opportunities created by the energy transition, particularly in renewable energy, energy infrastructure, electricity grids and battery storage. At the same time, they are becoming more aware of the financial consequences of climate-related physical risks, including floods, bushfires and extreme weather events. 🌟 Climate investing may have moved beyond the hype cycle One of the survey's most notable findings is that investor enthusiasm for climate investing appears to have stabilised after several years of decline. Peppelenbos describes this as a "net-zero hype cycle". Investor support reached very high levels several years ago before falling as the realities and complexities of the transition became clearer. The latest survey suggests that downturn may have bottomed out, with investors expecting climate considerations to become increasingly important again over the coming years. 🌟 Energy security is becoming a powerful investment driver While climate policy remains important, many investors now view energy security as an equally compelling reason to invest in the transition. Peppelenbos says ongoing geopolitical tensions, including disruptions to global energy markets, have strengthened the case for domestic renewable energy generation. Renewable energy is increasingly being viewed not only as a decarbonisation solution but also as a way to reduce exposure to geopolitical risks associated with fossil fuel dependence. 🌟 Renewables, electricity grids and batteries remain investment favourites Institutional investors continue to see attractive opportunities in renewable energy, electricity grids and related infrastructure. However, battery storage is emerging as an increasingly important theme. As renewable generation grows, storage solutions are becoming critical for balancing electricity supply and demand. Peppelenbos says investors are paying closer attention to batteries because they help support more resilient and secure energy systems. 🌟 Investors expect a disorderly climate transition The survey found that many investors do not expect an orderly path to net zero. Instead, an overwhelming majority anticipate a future characterised by both significant transition risks and increasing physical climate risks. In other words, investors expect climate action to occur too slowly to fully avoid the consequences of global warming, creating challenges on multiple fronts for economies, businesses and portfolios. 🌟 AI and data centres are being viewed as long-term sustainability enablers Artificial intelligence and expanding data centre infrastructure are often criticised for increasing energy and water consumption. However, investors generally believe the long-term benefits will outweigh the short-term costs. Peppelenbos says many respondents view AI as creating upfront resource demands that could ultimately lead to a more efficient economy with lower emissions and better resource utilisation over time. 🚩 Physical climate risks are moving into investment decision-making Investors are becoming increasingly concerned about the direct impact of extreme weather events on asset prices. According to the survey, many respondents expect physical climate risks to influence asset valuations within the next five years. As a result, investors are adapting portfolio construction, strategic asset allocation and stock selection processes to better account for these risks. 🚩 Data challenges remain a major obstacle Despite growing awareness, incorporating physical climate risk into investment decisions remains difficult. Peppelenbos explains that climate-risk modelling has traditionally been used within risk-management teams rather than investment teams. The challenge now is converting climate scenarios and risk analysis into practical inputs that can be incorporated into investment decisions and asset valuation frameworks. ⚠️ Insurance markets may face increasing pressure Climate risk is creating both opportunities and concerns for insurers. Demand for insurance, reinsurance and catastrophe-related products is growing, but there are also concerns about whether some risks will remain insurable. Peppelenbos points to instances where insurers have retreated from high-risk regions, potentially exposing homeowners and creating longer-term implications for property values and market stability. ⚠️ Regional approaches to climate investing remain very different The survey highlights significant regional differences in investor sentiment. European and Asia-Pacific investors continue to place greater emphasis on climate investing than their US counterparts. While enthusiasm in Europe has moderated since its peak, Asia-Pacific investors have remained relatively consistent in their approach, suggesting that climate investing continues to evolve differently across regions. 🌟 The next phase of climate investing may be more pragmatic Peppelenbos believes the future of climate investing will be less ideological and more commercially focused. Investors are still pursuing renewable energy and climate-related opportunities, but increasingly because they see strong long-term economic fundamentals and attractive investment outcomes rather than simply because they align with net-zero goals. 💡 Why it matters: Climate investing is no longer just about emissions targets and sustainability commitments. Institutional investors are increasingly approaching the transition through the lens of energy security, economic resilience and risk management. The growing focus on batteries, electricity infrastructure, renewable energy and physical climate risks suggests that climate-related investing is becoming more integrated into mainstream portfolio construction. For investors and asset owners, understanding these changing priorities may help identify where capital flows, opportunities and risks are likely to emerge over the next decade. 🎙️ Sources: Lucian Peppelenbos, climate & biodiversity strategist, RobecoMichelle Baltazar, host, The Greener WayRobeco 2026 Global Climate Investing Survey ⏱️ Timestamps: 00:00 – Investors expect a "too little, too late" climate transition 00:13 – Introduction to Robeco's 2026 Climate Investing Survey 01:10 – Who participated in the survey and why it matters 02:01 – Climate investing's hype cycle and changing priorities 04:00 – Regional differences between Europe, Asia-Pacific and the US 05:27 – Why investors expect both transition and physical risks 06:15 – Energy security's growing influence on investment decisions 08:07 – Renewable energy, grids and battery storage opportunities 09:01 – AI, data centres and sustainability impacts 10:42 – Net-zero goals versus investment performance 12:22 – Physical climate risks and asset pricing implications 14:25 – Insurance markets and climate-related challenges 15:39 – Key investment takeaways from the survey 🌿 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

    When energy security is the new currency

  7. Aug 17

    Leading the battery storage race

    🌿 Why are batteries becoming one of Australia's most attractive renewable energy investments? ❓ Question: As governments introduce more supportive energy storage policies and Australia's electricity system continues to transition away from coal, what role do batteries play in renewable energy investing, and why are institutional investors paying closer attention to the sector? ✅ Answer: According to Sonia Teitel, co-managing director of renewables at Octopus Australia, batteries are becoming a critical part of Australia's energy transition because they help solve one of the biggest challenges facing renewable energy: reliability. While solar and wind generation depend on weather conditions, batteries can store excess energy and release it when demand rises, helping create a more stable and flexible electricity system. Teitel argues that supportive government policies, strong market fundamentals, growing electricity demand and Australia's stable regulatory environment are strengthening the investment case for battery infrastructure and renewable energy portfolios. 🌟 Battery storage is becoming essential to the energy transition Teitel explains that batteries play a vital role in transforming intermittent renewable energy into a more dependable energy source. They can absorb excess electricity generated during periods of strong solar output and release it during evening demand peaks. This ability to provide "firmed" renewable energy helps replicate some of the reliability traditionally delivered by coal-fired power stations, making batteries an increasingly important complement to wind and solar assets. 🌟 Australia is emerging as a global leader in battery deployment While many investors often look overseas for examples of energy innovation, Teitel argues that Australia is setting the benchmark for large-scale battery deployment and optimisation. She believes international markets are increasingly studying Australia's approach to battery storage, particularly the way batteries are used to provide network support services and improve electricity system performance. 🌟 Institutional investors are attracted to strong long-term fundamentals A key factor supporting investment is the retirement of Australia's ageing coal-fired power stations. As coal generation exits the market, new energy infrastructure must replace lost supply. Teitel says this transition creates a compelling long-term investment opportunity, supported by government policies aimed at reducing carbon emissions while maintaining energy reliability. Australia's political stability and regulatory certainty further strengthen its attractiveness to institutional investors. 🌟 Battery projects generate value in multiple ways Beyond storing electricity, batteries can create several revenue streams. They enhance renewable energy projects by helping deliver power when customers need it, they perform energy arbitrage by storing low-cost electricity and selling it during peak demand periods, and they provide ancillary services that support transmission network stability. These multiple revenue sources can improve investment outcomes and increase the attractiveness of battery assets within diversified portfolios. 🌟 AI and data centres are creating new demand for renewable energy Teitel highlights the growing influence of artificial intelligence and data centres on Australia's energy landscape. As large technology companies expand their infrastructure requirements, demand for reliable electricity is expected to increase significantly. Government plans requiring some data centre developments to secure firmed renewable energy contracts before receiving approval could further support investment in renewable generation and battery storage assets. 🌟 Diversified renewable portfolios may deliver stronger outcomes Rather than viewing battery, wind and solar projects as separate investment opportunities, Teitel advocates for a portfolio approach. Combining multiple technologies across different regions can help manage risk, improve reliability and better align electricity supply with customer demand. She argues that this integrated approach may be more effective at generating long-term investment returns than relying on individual asset types. 🚩 Infrastructure development remains complex and execution-focused Building large-scale renewable and battery infrastructure requires significant expertise. Teitel notes that investors need to assess whether project developers have the capability to manage construction, secure transmission access, negotiate offtake agreements and operate assets effectively. Transmission capacity constraints can also influence project economics and investment outcomes. 🚩 Choosing the right portfolio matters more than selecting individual technologies Teitel cautions against focusing too heavily on whether a single wind, solar or battery project will outperform another. Instead, investors should evaluate how assets work together within a broader portfolio to provide customers with reliable electricity and generate sustainable long-term returns. ⚠️ Australia still needs significantly more renewable energy infrastructure Despite favourable policy settings, Teitel believes renewable energy deployment is not yet occurring at the pace required to support future electricity demand. Coal generation is steadily leaving the system while AI-driven demand growth continues to emerge. Failure to accelerate renewable and storage investment could place additional pressure on energy supply and affordability. ⚠️ Network constraints can affect project viability Battery and renewable projects depend on access to transmission infrastructure. Investors who overlook network limitations and grid connection challenges may face delays, increased costs or reduced returns. Understanding where projects are located and how they connect to the electricity system remains an important part of investment due diligence. 🌟 Looking ahead, Australia could be entering a major growth phase for renewable investment Teitel believes the combination of supportive government policy, rising electricity demand from AI and data centres, the retirement of coal generation and growing investor interest is creating favourable conditions for renewable energy investment. She argues that investors entering the sector today have an opportunity to participate in what could be a decades-long period of energy infrastructure growth and transformation. 💡 Why it matters: Battery storage is rapidly moving from a niche technology to a core component of Australia's electricity system. As governments pursue decarbonisation goals and demand for electricity continues to rise, investors are increasingly looking at how batteries, wind and solar assets can work together to deliver reliable energy. Teitel's insights highlight how the investment discussion is evolving beyond renewable generation alone toward building integrated energy systems capable of supporting future economic growth. For institutional investors, battery storage may become one of the defining infrastructure opportunities of Australia's energy transition. 🎙️ Sources: • Sonia Teitel, co-managing director, renewables, Octopus Australia • Michelle Baltazar, host, The Greener Way ⏱️ Timestamps: 00:00 – Why Australia is leading battery deployment 00:18 – Introduction and Chris Bowen's battery storage comments 01:33 – Octopus Australia's renewable energy portfolio 03:00 – How government policy influences investment decisions 04:18 – Australia's growing battery storage market 05:00 – How battery assets create value for investors 06:20 – Network support and ancillary services 06:39 – Why other markets are learning from Australia 07:33 – AI, data centres and future energy demand 08:38 – Risks investors should understand 10:00 – Why portfolio construction matters 10:47 – Investment opportunities over the next decade 11:42 – Balancing long-term returns and energy transition goals 12:02 – Key messages for superannuation investors 12:34 – Why now may be the opportunity to invest 13:05 – Final reflections on Australia's renewable energy future 🌿 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

    Leading the battery storage race

  8. Aug 10

    Why ESG matters for this $22bn fund manager

    🌿 How are ESG fund managers using sustainability to make better investment decisions? ❓ Question: As ESG investing faces increasing scrutiny and evolving reporting requirements, how do professional fund managers integrate sustainability considerations into investment decisions without sacrificing returns? ✅ Answer: According to Mans Carlsson, head of ESG and co-portfolio manager at Australian fund manager Ausbil Investment Management, ESG integration is fundamentally about making better-informed investment decisions. Rather than focusing on ideology, Carlsson argues that ESG research helps investors identify risks, assess management quality, evaluate stakeholder relationships and uncover long-term opportunities that traditional financial analysis may overlook. Through proprietary ESG research, company engagement and on-the-ground investigation, investors can better understand which companies are managing risks effectively and which may face future reputational, regulatory or operational challenges. 🌟 One of Carlsson's key messages is that ESG investing does not necessarily require investors to sacrifice returns. He challenges the long-standing perception that excluding companies on sustainability grounds automatically reduces performance, arguing that ESG analysis helps investors avoid poorly managed companies while identifying businesses that are improving governance, risk management and stakeholder relationships. In his view, these factors can contribute to stronger valuations over time. 🌟 Ausbil's investment process combines traditional financial research with proprietary ESG analysis. The firm's ESG team continuously assesses ASX 200 companies and works closely with portfolio managers and analysts. Engagement with companies is a core part of the process, with more than 200 ESG-related company meetings conducted annually. These engagements are often used to encourage companies to adopt best-practice approaches to issues such as climate change, responsible sourcing, corporate governance and workforce management. 🌟 Direct engagement and field research remain critical despite advances in artificial intelligence. Carlsson argues that while AI can assist with data collection and summarisation, ESG analysis involves qualitative judgement that cannot easily be automated. Understanding how seriously a company manages risks, responds to challenges and implements policies still requires human expertise, experience and direct interaction with management teams and stakeholders. 🌟 Supply chain transparency is becoming an increasingly important area of ESG analysis. Carlsson described how technology now allows companies to trace the origins of commodities and products with greater accuracy. Businesses that invest in supply chain visibility can reduce the risk of reputational damage, particularly as regulators, investors and consumers pay closer attention to issues such as modern slavery and responsible sourcing. 🌟 ESG analysis can identify risks before they become widely known. Carlsson shared an example of avoiding an investment in a high-profile company after proprietary research uncovered allegations of worker underpayment. Once the issue became public, the company's share price fell significantly. He argues that this demonstrates the value of conducting independent research rather than relying solely on company disclosures. 🌟 Sustainability reporting requirements are improving the quality of information available to investors, particularly around climate risk. Carlsson highlighted climate-related disclosure frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD) as useful because they encourage companies to examine future risks and opportunities rather than simply reporting historical emissions data. He believes forward-looking climate assessments provide a more complete picture of potential investment risks. 🚩 One challenge is that ESG data alone does not provide investment answers. Carlsson cautions against overreliance on datasets and reporting frameworks, arguing that the value lies in interpreting the data and understanding how it affects a company's future prospects. Investors still need analytical judgement to separate meaningful signals from noise. 🚩 The transition to a lower-emissions economy is proving more complicated than many anticipated. Carlsson noted that rising energy demand, slower-than-expected commercialisation of some decarbonisation technologies and increasing demand from AI-powered data centres are creating challenges for the energy transition. He argues the discussion is increasingly shifting from "energy transition" to "energy addition" because overall energy demand continues to grow. ⚠️ Modern slavery and supply chain risks are likely to face greater regulatory scrutiny in coming years. Carlsson points to emerging international regulations, particularly in Europe, that could impose stricter due diligence requirements and restrictions on goods linked to forced labour. Companies that fail to understand and monitor their supply chains may face operational, legal and reputational risks. ⚠️ Reputational damage can emerge rapidly when supply chain issues become public. Carlsson believes advances in traceability technology mean companies will face increasing expectations to verify where materials and products originate. Organisations that fail to invest in transparency could find themselves exposed as external scrutiny intensifies. 🌟 Looking ahead, Carlsson expects ESG investing to become more focused on financial materiality. Rather than broad ideological debates, he believes the future of responsible investing will centre on identifying sustainability issues that have direct implications for company performance, risk management and long-term shareholder value. For active managers, this means maintaining a disciplined focus on material ESG factors that influence investment outcomes. 💡 Why it matters: As sustainability disclosure requirements expand and ESG investing continues to evolve, investors face growing pressure to separate meaningful sustainability risks from superficial reporting. Carlsson's approach highlights a broader shift taking place across the investment industry: ESG is increasingly being treated as a tool for risk management and company analysis rather than a standalone investment philosophy. Issues such as supply chain transparency, climate resilience, workforce management and corporate governance are becoming material financial considerations that can influence company valuations and long-term performance. For investors, understanding these factors may prove increasingly important as regulations tighten, stakeholder expectations rise and new technologies expose risks that were previously difficult to detect. 🎙️ Sources: Mans Carlsson, head of ESG and co-portfolio manager, Ausbil Investment Management Michelle Baltazar, host, The Greener Way ⏱️ Timestamps: 00:00 – Why supply chain transparency is becoming critical 00:19 – Introduction to Ausbil and ESG investing 01:14 – Ausbil's investment approach and ESG capability 02:31 – Proprietary ESG research and company engagement 03:20 – ESG field trips and responsible sourcing insights 04:01 – Encouraging companies to adopt best practice 04:44 – Can AI replace ESG research? 06:04 – The biggest myths about ESG investing 07:00 – How ESG factors influence company value 08:07 – Sustainability reporting and climate disclosure 09:15 – Climate risk versus emissions reporting 10:05 – Examples of ESG leaders and laggards 11:09 – Supply chain traceability and modern slavery 12:28 – Decarbonisation, AI and energy demand growth 14:21 – The future of ESG investing 15:21 – Why financial materiality matters 15:45 – Modern slavery regulation and supply chain due diligence 16:14 – The broader benefits of supply chain scrutiny 16:37 – Final reflections on ESG and responsible investing 🌿 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

    Why ESG matters for this $22bn fund manager
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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
    218
  • Rating
    Clean
  • Copyright
    © Copyright 2026 FS Sustainability
  • Show Website
    The Greener Way

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