What will I learn about: why traditional sustainable investing doesn't go far enough and how system-level investing actively strengthens the foundational social, financial, and environmental systems society depends on?

Discover why traditional sustainable investing doesn't go far enough and how system-level investing actively strengthens the foundational social, financial, and environmental systems society depends on.

What will I learn about: elevate your portfolio beyond simply holding socially conscious companies by campaigning for public policies, advocating for industry standards, and collaborating for systemic solutions?

Learn how to elevate your portfolio beyond simply holding socially conscious companies by campaigning for public policies, advocating for industry standards, and collaborating for systemic solutions.

What will I learn about: the art of targeting your investments effectively by choosing systemic issues that meet three crucial criteria: widespread consensus, financial relevance, and the realistic potential for your influence?

Master the art of targeting your investments effectively by choosing systemic issues that meet three crucial criteria: widespread consensus, financial relevance, and the realistic potential for your influence.

What will I learn about: why pursuing short-term financial gains at the expense of vital global systems, like climate stability and consumer safety, ultimately results in serious, long-term losses?

Understand why pursuing short-term financial gains at the expense of vital global systems, like climate stability and consumer safety, ultimately results in serious, long-term losses.

What will I learn about: how specific financial assets, such as green bonds and COVID bonds, can be strategically utilized to fund critical environmental projects and drive true systemic change?

Find out how specific financial assets, such as green bonds and COVID bonds, can be strategically utilized to fund critical environmental projects and drive true systemic change.

Theme Song

21st Century Investing

Redirecting Financial Strategies to Drive Systems Change

William Burckart and Steven D. Lydenberg

★ 3.4 / 5(204 ratings)

Start ListeningDownload QR code that opens AudiobookHub on the App Store

Try free on iPhoneScan to start in 5 seconds

Categories:

Money & Investments

If You're Curious About These Questions...

You should listen to this audiobook

💡Did you know that the secret to long-term wealth might have less to do with picking individual stocks and more to do with protecting the very systems that make markets possible?
💡Have you ever wondered how to reconcile your desire for high returns with the need for a more just and sustainable world?
💡What if you could move beyond simply managing risk and start using your investments to actually strengthen the social and environmental foundations of our economy?

Listen to 21st Century Investing — Free Audiobook

Loading player...

Key Takeaways from 21st Century Investing

✓Discover why traditional sustainable investing doesn't go far enough and how system-level investing actively strengthens the foundational social, financial, and environmental systems society depends on.
✓Learn how to elevate your portfolio beyond simply holding socially conscious companies by campaigning for public policies, advocating for industry standards, and collaborating for systemic solutions.
✓Master the art of targeting your investments effectively by choosing systemic issues that meet three crucial criteria: widespread consensus, financial relevance, and the realistic potential for your influence.
✓Understand why pursuing short-term financial gains at the expense of vital global systems, like climate stability and consumer safety, ultimately results in serious, long-term losses.
✓Find out how specific financial assets, such as green bonds and COVID bonds, can be strategically utilized to fund critical environmental projects and drive true systemic change.

Learning Tools

Reinforce what you learned from 21st Century Investing

Mind Map

21st Century Investing

The Core Philosophy+

Targeting Investments+

Leveraging Assets+

Repurposing Traditional Tools+

Driving Indirect Reform+

Evaluating Financial Managers+

Quiz — Test Your Understanding

Question 1 of 6

How does 'system-level investing' primarily differ from traditional sustainable investing, according to the text?

A. System-level investing focuses exclusively on maximizing short-term financial returns for clients.
B. System-level investing requires being a high-powered fund manager rather than an individual hobbyist.
C. System-level investors actively campaign for public policies, advocate for industry standards, and collaborate for broad systemic solutions.
D. System-level investing is solely concerned with divesting from fossil fuels to achieve a 'do-no-harm' portfolio.

Question 2 of 6

When deciding where to focus investments, the authors recommend using the criteria of consensus, relevance, and effectiveness. How is 'relevance' defined in this context?

A. Widespread public agreement that an issue is legitimate and important.
B. The potential of an issue to significantly affect diverse investments and various types of assets.
C. The likelihood that an individual investor can actually influence or create change regarding the issue.
D. The guarantee that an investment will yield positive short-term financial gains.

Question 3 of 6

How do system-level investors utilize bonds to drive systemic change?

A. By using them exclusively to balance out the risk profile of high-yield stock portfolios.
B. By investing in specialized bonds, such as green bonds or COVID bonds, that directly finance environmental and recovery projects.
C. By shorting government bonds to protest against poor environmental legislation.
D. By converting all their equity holdings into corporate bonds to avoid the volatility of the stock market.

Question 4 of 6

Why is an Investment Beliefs Statement (IBS) considered a valuable tool for a system-level investor?

A. It guarantees that a financial institution will deliver above-market financial returns.
B. It outlines the specific tax advantages of investing in socially responsible companies.
C. It clearly lays out a financial institution's investment philosophy, allowing investors to see if their values align.
D. It provides a legally binding contract that prevents a company from contributing to climate change.

Question 5 of 6

Which historical event is highlighted in the text as a successful example of investors using 'standards setting' to demand reform?

A. The 2007 financial crisis leading to the creation of green bonds.
B. Reverend Leon Sullivan's campaign to combat apartheid in South Africa by withholding capital from discriminatory companies.
C. The adoption of investment beliefs statements by the California retirement fund CalPERS.
D. The global divestment from fossil fuel companies to stabilize the literal climate.

Question 6 of 6

Why do the authors advise investors to critically question the conduct of financial managers who offer sustainable investing products?

A. Because most financial managers are legally prohibited from prioritizing systemic changes over financial returns.
B. Because traditional financial tools like portfolio construction cannot be used for systemic change.
C. Because the sudden popularity of sustainable investing makes it hard to distinguish true commitment from mere lip service.
D. Because financial managers typically charge higher fees for system-level investing than for conventional investing.

21st Century Investing — Full Chapter Overview

1Recommendation
21 — System-level investing reinforces the social, financial, and environmental systems society depends on.
32 — Target your investments using consensus, relevance, and effectiveness.
43 — Bonds can help finance systemic improvements.
54 — System-level investors should focus on portfolio construction and investment belief statements.
65 — Investors can use standard-setting to demand reform.
76 — Always question how financial managers behave.
87 — Final summary

21st Century Investing Summary & Overview

21st Century Investing (2021) is a guide to ethical and responsible investment strategies. Instead of making money at the expense of our fragile social and environmental systems, you can invest in ways that will actually strengthen them – ensuring societal stability and long-term returns.

Who Should Listen to 21st Century Investing?

Investors wondering how to square profitability with social justice
Anyone curious about the future of investment strategy
Savers hoping to future-proof their investments in an increasingly uncertain world

About the Author: William Burckart and Steven D. Lydenberg

William Burckart is COO and president of The Investment Integration Project (TIIP), a consulting services firm that advises organizations on systemic risks and opportunities. He coedited New Frontiers of Philanthropy, and his work has appeared in the Guardian and Forbes, among other publications.

Steven Lydenberg is a partner at Domini Impact Investments. He is also the founder and CEO of The Investment Integration Project (TIIP), as well as the founding director of the Initiative for Responsible Investment at Harvard University’s Kennedy School of Government. His publications include Corporations and the Public Interest and Dilemmas in Responsible Investment.