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Big fortunes will be made by investors that bankroll technologies to fast-track decarbonisation as pressures intensify on companies over net zero targets, according to the Australian-born global sustainability chief at one of the world’s biggest investment banks.
The Zurich-based James Gifford, one of the global pioneers of ESG (environmental, social and governance) investing, said Australian high net worth and institutional investors were increasingly pivoting to invest in technologies supporting sustainable and impact investing.
“If you’re an investor, you want to be where the growth is. Investors want to go where the future is, because (the present) is typically already priced in,” the global head of Credit Suisse’s sustainable and impact advisory said in a wide-ranging interview.
“We would never suggest that clients sacrifice returns just to make the world a better place. We believe that these companies are going to make a lot of money.
“Yes, you have to take risks when you back early stage companies. But this is where the world is heading,” he added.
“If fund managers do a good job at selecting companies and then backing those companies to help them grow, then there is going to be a lot of money to be made solving the world’s problems.” Dr Gifford works with Credit Suisse’s clients and advisers to mobilise capital into impact investing, which delivers both social and financial outcomes.
For the past seven years he has taught a program at Harvard and the University of Zurich on impact investing for the next generation of ultra-high net worth family members, that has mobilised billions of dollars into impact investing strategies.
Dr Gifford was last week briefing Credit Suisse clients in Sydney on strategies to decarbonise their portfolios, including investments in private equity and venture capital. The briefings continue in Melbourne this week.
His key claim to global fame was being the founding executive director – in 2003 – of the United Nations Principles for Responsible...