Presentation setting out the urgent need for a ‘Second Deep Transition’ to a more sustainable and just society.
The authors argue we are at a watershed moment, where investors have a crucial role to play. Investing in system optimisation will not be sufficient to address the complex, interconnected challenges of climate change, biodiversity loss, and inequality. Instead, this Deep Transition requires Transformative Investment that goes beyond traditional ESG or impact investing by explicitly aiming to catalyse systemic change.
The slides address:
- why existing investment approaches are no longer fit for purpose;
- the foundations of Deep Transitions thinking, which explains how change unfolded in the past in order to help us shape the future;
- the journey towards a philosophy for transformative investment, which promotes investments that are orientated towards the long term, can cope with radical uncertainty, and can induce a Second Deep Transition;
- twelve principles for Transformative Investment, to aid investors in orientating strategies toward systemic change; and
- the role of the Deep Transitions Lab in supporting research, experimentation and learning to shape a more sustainable and just future.
Citation
Keesman, S., Schot, J. and Laurence, N. (2024). Slides: introducing the Deep Transitions Lab. Deep Transitions Lab. Available at: https://www.tipresourcelab.net/resource/slides-introducing-the-deep-transitions-lab
Reflections on use
‘Impact and ESG investment practices are bringing positive developments to the industry. However, certain dominant practices often favour system optimisation rather than deeper and more fundamental societal transformations. These include, for example, short-term focus, narrow interpretation of fiduciary duty, rigid asset class distinctions, backward-looking risk management, and incentives structures. To support global net-zero targets or the trajectory stipulated in the Sustainable Development Goals, we need to change the way we invest. Investments need to contribute to long-term system change.’
— Roberta Benedetti del Rio, impact investor
