Impact Investing - Green Prophet

Nobul’s Regan McGee on Shareholder Value: “Complacency Is the Silent Killer”

Bhok Thompson — Fri, 27 Mar 2026 09:18:25 +0000

Regan McGee of Nobul

Why the governance framework designed to protect shareholders so often fails them

There is a pattern Regan McGee has watched repeat itself across industries, company sizes, and market cycles. A business reaches a certain scale. The founding hunger fades. A professional management layer arrives. The board fills with credentialed names who attend meetings, approve budgets, and collect fees. Shareholder returns flatten. Then, quietly, they begin to erode.

McGee, founder and CEO of Nobul, has spent the better part of two decades working across capital markets, private equity, and technology. That experience has produced a view on corporate governance that most governance commentators would rather not engage with directly: the framework that is supposed to protect shareholders is often the very thing that guarantees their mediocrity.

“I think complacency is the silent killer,” McGee says. “It just takes a long time for the market to recognize it.”

The Complacency Premium

Research from Bain & Company found that founder-led S&P 500 companies performed 3.1 times better than all other S&P 500 companies over the 25-year period from 1990 to 2014.

That is not a marginal difference. That is a fundamentally different outcome for the people who own the shares.

The companies producing those returns include Amazon, Apple, Microsoft, Oracle, and Dell, which are precisely the ones that conventional governance frameworks have flagged most often for concentrated control, founders who resist ceding authority, and compensation structures that draw scrutiny. But by the metric that actually matters to the people who own the shares, they have been transformational.

A study by Professor Rüdiger Fahlenbrach of the Swiss Federal Technology Institute of Lausanne found that an investment strategy tracking founder-CEO firms from 1993 to 2002 would have earned a benchmark-adjusted return of 8.3% annually. After controlling for firm size, industry, and other variables, the abnormal outperformance held at 4.4% annually. The research also found that founder-CEO firms consistently outinvested their peers in R&D and capital expenditure.

Taken together, the data points to the same conclusion: the governance structures often celebrated by proxy advisors and institutional consultants don’t necessarily correlate with the best shareholder outcomes.

What distinguishes the outperforming companies is not luck or sector tailwinds alone. It is, as McGee describes it, a culture of hunger. A refusal to treat existing scale as a destination rather than a starting point. A willingness to make bold, sometimes uncomfortable decisions that a committee-driven board may have voted down.

“Once you get into so-called good governance,” McGee observes, “you’re going to perform at the same as the market, unfortunately.”

When Compensation Structure Isn’t Tied to Results

Before examining how boards fail quietly, it is worth examining a case where the failure was structural and precise.

McGee recalled a compensation arrangement where the incentive to underperform was not a side effect but a feature.

The CEO made himself the biggest shareholder in the company,” he explained. “The company had actually created his comps package so that the more he lowered the stock price, the more the company would control. He was actually incentivized to drive the stock price down.”

Pause on that for a moment. This was not a misaligned incentive that slipped through a governance gap. It was a structure that was reviewed, approved, and put in place by a board with full access to the terms. The CEO was not merely failing to grow shareholder value. He was being paid to shrink it. The board that existed to prevent exactly that outcome had instead encoded it into his contract.

The shareholders in this company woke up every day owning shares in a business whose leadership had a direct financial interest in those shares being worth less tomorrow than they were today. The board knew this. The compensation committee signed off on it. And the governance framework that was supposed to catch arrangements like this did not catch it. The boxes were checked, the committees were functioning, and nothing in the formal structure required anyone to ask whether the incentives actually pointed in the right direction.

That is not a governance failure in the abstract. It is a precise, documented betrayal of the people the board existed to protect.

How Boards Fail Without Anyone Noticing

The more insidious problem, in McGee’s view, is not the dramatic governance failure. It is the slow, entirely unremarkable kind that never makes headlines because nothing obviously wrong has occurred.

McGee identified a consistent set of early warning signs. The first: board members who confuse their own importance with actual value creation. Directors who treat their seats as status rather than responsibility.

The second is the rubber-stamp dynamic that emerges when boards defer entirely to advisors rather than applying independent judgment. The scale of that deference is significant: research published by Stanford’s Corporate Governance Research Initiative notes that a negative recommendation from proxy advisory firm ISS on a management proposal can sway as much as 20% of the vote on a given proposal.

But consider what that influence looks like when applied to a situation like the one McGee described above. A board presides over a company whose stock falls more than 99%. Management extracts millions in above-market compensation over the same period. The CEO’s incentive structure is explicitly designed to reward share price destruction. The assets of the company are systematically sold off. All of this is on the public record.

ISS reviewed that record and recommended the reelection of the board anyway, over a qualified turnaround slate that had the legal proxies to win.

That is not a structural critique of proxy advisory influence. It is an example of what that influence costs shareholders when it is applied without adequate judgment. The Stanford stat tells you how much power ISS has over a given vote. This tells you what happens when that power is exercised badly.

What Works

McGee’s prescription is specific and structural. Boards should be evaluated on what they produce, not on how they look. Executive compensation should be tied directly to total shareholder return over defined periods, not benchmarked to peer compensation regardless of outcomes. That single structural change would eliminate much of the incentive architecture that currently rewards underperformance.

Beyond compensation, he says the cultural standard matters as much as the structural one. The founder-led companies that have defined the modern economy did not get there by following every detail of the governance playbook. They got there by being relentlessly focused on growth, willing to be uncomfortable, and unwilling to let scale become an excuse for standing still. Replicating that culture, or protecting it where it exists, is not a governance question. It is a leadership one.

For McGee, there are clear solutions to the silent killer of complacency. Tie pay to outcomes. Put builders in the room. Keep the hunger that built the company from being managed away by the people who arrived after it was already worth protecting. The difficulty is not in understanding it. It is in maintaining it when institutional pressure is pushing in the other direction.

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M2PV Capital Targets the American Southwest as Its Launchpad for Off-Grid EV Growth

Bhok Thompson — Fri, 23 Jan 2026 05:52:49 +0000

Solar energy in the Mojave Desert. Credit: Ivanpah, supplied.

The American Southwest is where the EV transition faces its most unforgiving conditions. Extreme heat degrades EV batteries, causing range loss of 15% to over 30% when temperatures exceed 95°F to 100°F. Long travel corridors strain range limits of commuters and long-haul trucks. Grid access remains patchy across vast desert and rural zones. In much of Arizona, Nevada, New Mexico, West Texas, and inland California, electric mobility is not constrained by consumer interest, but by infrastructure reality. This is despite these regions being a hub for EV battery production to be close to the source of building lithium batteries.

This is the environment where M2PV Capital is building its business.

The company frames electric mobility infrastructure as requiring more than chargers. It argues that technical precision, grid independence, and operational excellence are essential in regions where traditional infrastructure does not exist. M2PV Capital develops, owns, and operates off-grid EV charging assets through an in-house technical model designed to bypass grid dependence entirely. Micro-grids are the key.

For Southwest communities and transport corridors, that approach addresses a core bottleneck: grid expansion timelines that stretch years beyond mobility demand. M2PV Capital’s strategy is structured around designing energy independence directly into each project.

The company positions its work around locations where conventional developers often hesitate to operate: desert regions, remote corridors, and underserved communities. Where the grid is absent or unreliable, its systems are designed to function independently and perform reliably for decades. This model reflects the Southwest’s physical realities. Solar resources are abundant. Population density is low. Travel distances are long and infrastructure must operate with minimal external support.

An endless American highway. Credit: Pete Alexopoulos

M2PV Capital is currently developing two primary business capabilities: Charging Plazas and power plant development. These projects are intended to demonstrate technical execution while establishing repeatable models for scalable deployment. In practical terms, this means EV charging stations paired with dedicated power assets, allowing each site to operate as an integrated energy system rather than a grid-dependent endpoint.

For Southwest planners and investors, the approach offers a potential blueprint for EV expansion without waiting for large-scale transmission upgrades. That balance is increasingly important as public agencies seek infrastructure models that align climate objectives with regional resilience and fiscal accountability.

M2PV Capital describes its role as building the infrastructure backbone for electric mobility in overlooked markets, combining technical depth, operational ownership, and long-term asset discipline to deliver predictable performance. Green Prophet speaks with M2PV Capital to learn more about opportunities as it tests the ground in the United States, bringing proof-of-concept for regions in Canada where extreme cold is the other side of the same coin, or the Middle East where thousands of miles of relentless desert could be charging station and energy opportunities as the world weans off oil and natural gas.

GREENPROPHET: What is M2PV Capital’s main focus?
M2PV Capital: We develop, own, and operate off-grid EV charging infrastructure in underserved and remote regions where traditional grid access is limited or nonexistent.

Why off-grid?
It allows us to deploy infrastructure where it’s needed most, without waiting for grid expansion. We engineer energy independence into every project.

What business capabilities are you building?
Two core businesses: Charging Plazas for public EV infrastructure and power plant development to generate the energy that powers them independently. Both demonstrate our technical execution and create scalable models.

Why focus on desert and underserved regions?
These areas lack infrastructure but have critical mobility needs. They also require sophisticated engineering—our core strength.

What makes your technical approach different?
Everything is in-house: feasibility analysis, system design, construction oversight, and operations. We control quality and performance at every stage.

How do you ensure long-term asset performance?
Through rigorous upfront planning, robust system design, and continuous operational management. Our assets are built to perform reliably for 20+ years.

What do investors and policymakers gain from this approach?
Confidence. Our projects are technically sound, operationally proven, and financially disciplined. They deliver infrastructure that works and returns that are predictable.

What is the core opportunity you see in the market right now?
We can build power plants rapidly, because we don’t have to wait for grid interconnection (we are off-grid).

This fund aims to reduce downside risk and capitalize on the accelerating EV market by acquiring prime land on which we build off-grid, clean-energy-powered EV charging stations, particularly in the rapidly appreciating desert Southwest. Our differentiation lies in our ability to bypass grid interconnection bottlenecks, enabling faster development and mitigating risks from grid instability, while having a clear path to funding subsequent EV station construction. Because we invest in Opportunity Zones, the gains can be tax free. Creating power generation facilities in areas where the grid is weak or has not reached yet enables industry to co-locate, further increasing the value of the land we invest in.

What types of assets and geographic markets will your fund focus on and why?
Our fund will focus on companies operating in the Southwest United States, specifically land in Opportunity Zones with access to water, highways, and data lines. The Southwest allows us to generate energy at a low cost due to low land cost and high solar irradiation.

How will your fund create value across its portfolio?
By investing in companies that start with low-cost greenfield land and develop energy and transportation infrastructure, we invest in land that increases in value rapidly. While competitors focus on areas with grid connection, our investments can operate slightly outside the range of the grid and generate their own electricity, avoiding competition with large corporations in the current land grab.

Our CEO has 30 years of experience in the solar industry, 10 years in power plant development, five years in batteries, and two years in EV charging stations. He has designed, procured, built, and developed gigawatts of power plants.

Our COO has a background in transportation and logistics as well as EV chargers. We know how to design and build power plants fast.

Our portfolio companies acquire low-cost land and raise its value by creating local infrastructure through EV charging stations for trucks and passenger vehicles. Our strength is the ability to build power infrastructure anywhere.

Why the Southwest comes first

M2PV Capital identifies the Southwest United States as its primary growth region because extreme climate conditions, long travel corridors, and limited grid access create a persistent EV infrastructure gap. While desert regions are a natural fit, the company’s focus extends to any underserved or infrastructure-constrained areas within the region.

Its target audience includes infrastructure- and energy-focused investors, government and regional development decision makers, and participants across the EV and clean energy ecosystem.

Although initial deployments are concentrated in the Southwest, the company’s technical and operational model is designed to be repeatable in similar climates globally. Regions such as the Middle East share many of the same challenges, including extreme heat, remote locations, and the need for energy independence. International markets are viewed as longer-term extensions of the platform rather than immediate priorities.

M2PV Capital frames its five-year outlook around disciplined execution, foundation building, and long-term profitable operation of EV assets.

To reach the company, drop them a line: mmesmer@m2pv.com

::M2PV Capital

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Nature as Capital at COP30 and how blended finance and debt-for-nature swaps work

Karin Kloosterman — Wed, 05 Nov 2025 09:05:14 +0000

Jubail mangrove wal in Abu Dhabi

Belém’s COP30 puts forests, freshwater and oceans at center stage. How are emerging markets treating nature as infrastructure— and plugging it into finance and trade. We know that the world has reached the coral tipping point, and as you are busy saving the trees and oceans, know how activists, locals, banks and business can work together. Learn the lingo of finance mechanisms to help save the planet.

Everyone will cover the headlines from the United Nation’s climate conference, this year called COP30 and which is in Belém, Brazil. Fewer will explain the mechanics of how nature becomes cashflow, trade leverage and resilience infrastructure—especially for the Global South. That’s the gap we’re filling. Green Prophet offers a practical question: what instruments exist right now to turn living systems into value chains that stand up to droughts, floods and supply-chain shocks? And how can MENA, Africa and Latin America lead instead of only react.

Know your terminology if you want to follow the conversations in the room

Blended Finance

Econcrete restores coastal habitats with low-cost concrete that mimics a natural shoreline.

Blended finance is the engine room. Public and philanthropic “first-loss” capital de-risks deals; commercial investors come in behind. The aim is to move beyond pilot projects into pipelines that pay for restoration at scale. The World Bank’s recent review shows a surprising depth of activity in nature-based infrastructure, with millions of people already benefiting from coastal and watershed projects that reduce disaster risk while growing local economies.

Let’s take an example we can get behind: Imagine there is huge project to fix a coastline that’s getting destroyed by storms over and over again. We know that planting mangrove trees and building natural barriers to protect homes and schools works. But who pays for this, especially in developing nations like Thailand, where government money might be tight, especially on small islands.

Thailand’s, and Saudi Arabian mangrove forests can help mitigate climate change by keeping rising tides and storms at bay

The problem is that it costs a lot to plant and maintain mangrove trees and natural barriers, and even less natural ones like the ones built by Eco-Concrete in costal areas of New York. There is a lot of good reasons why protecting coastlines are good: tourism, business and stability to invest in a region pay off in the long term.

So how does blended finance work? Big investors might not build a university or a business center in an at-risk area like Indonesia because its islands are at-risk from flooding. They watch as government and charities go first to build pilot projects. These groups take the first losses and are buffered to do so. When investors see a project or pilot is working, the investors and banks can join in.

The end result is that if it’s a project on island resilience, and it’s done well with the local community, the fishermen get more fish, the houses and infrastructure don’t flood, and tourism and businesses in the area improve. Now instead of the government or local municipality working to clean up new disasters as they happen, the community and investors protect a community and its economy.

Where this is doing well:
Indonesia: planting mangroves to protect coasts and create jobs, in Kenya where they are restoring forests to secure water for cities and farms and in Colombia, where they are rebuilding riversides to stop floods and boost tourism. The World Bank found millions of people already benefiting from nature-based projects like these. They’re not just experiments — but are becoming real business pipelines.

Debt for Nature Swaps

Debt-for-nature swaps are also keywords you will hear coming out of COP30 and debt-for-nature is having a moment. By refinancing sovereign debt of a nation and locking savings into conservation endowments, countries can protect mangroves, reefs and forests while improving fiscal stability.

The Bahamas’ swap—backed by private guarantees and insurers—unlocked roughly $124 million for ocean protection and mangrove recovery. Expect more hybrids like “blue bonds,” watershed bonds, and biodiversity-linked notes as COP30 pushes nature up the finance agenda.

Canada is beginning to explore similar nature-finance mechanisms. They are offering grants for businesses that support climate change initiatives. While small island nations pioneered debt-for-nature swaps, the logic applies anywhere natural assets protect economies. Take the St. Lawrence River and the Great Lakes Basin. This is a freshwater system worth trillions in trade, shipping, drinking water, hydropower, and fisheries — yet it faces rising storm surges, coastal erosion, surges in algae blooms, and biodiversity loss.

Imagine a Canadian “watershed bond” modelled on the Bahamas’ blue bond play: federal and provincial governments refinance aging municipal debt in water-adjacent cities like Toronto beaches, Kingston, Thunder Bay, and Windsor. Interest savings are then routed into a protected watershed fund to restore wetlands, rebuild fish nurseries, and reinforce natural floodplains that protect ports and neighborhoods.

Who backs it? Pension funds like CPP Investments, insurers hedging climate risk, and Indigenous-led stewardship trusts that secure long-term governance. Satellite and LiDAR data verify improved water quality, carbon storage, and flood protection — giving investors confidence that nature isn’t just a moral win, but a balance-sheet asset.

Nature Markets

Circle farming in Holland uses AI and nature together.

Nature markets are growing up fast — and not just carbon trading. Investors and governments are starting to put real contracts behind things like restoring habitats, protecting species, and improving fisheries. In the past, these ideas lived in Canva or PowerPoint presentations and pilot projects that didn’t go far beyond the anecdote stage. Today, they’re showing up in legal agreements, budgets, and deal pipelines.

What changed? Measurement tech and startups working in the impact space. We can now track how many fish return to a reef, how much flood damage is avoided when wetlands are restored, or how many species come back when forests regrow. When you can measure nature’s value, you can finance it. Also, investors found that impact companies can return significantly higher returns on investment.

The early winners will be projects that do more than one thing: reduce carbon, protect coasts, boost fishing incomes, create jobs, and improve water security. In short, projects and companies that score high in ESG. Instead of selling just one benefit, they’ll earn money from many revenue streams. The future natural economy isn’t supposed to be about charity — it’s revenue, resilience, and concepts like regenerative agriculture working together.

What to watch at COP30

A Brazil rainforest

Belém in Brazil may be remembered as the summit where nature moved from a side-event to system change. If you are there at the event, Look for bigger blended-finance vehicles for forests and watersheds, standardized biodiversity/ecosystem credit frameworks, clearer guidance on how trade tools like CBAM and deforestation-free rules interact with development and equity goals, and concrete deals in the Amazon and beyond that link restoration to export growth.

Media attention will swirl around politics, but the durable story is finance and how data can turn ecosystems, including jungles and seashore towns, into resilient value-chains.

Explore related coverage on Green Prophet

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Charitable Vehicles for Families: Foundations, Funds, and LLCs

Bhok Thompson — Thu, 17 Jul 2025 00:24:56 +0000

If you are running an impact charity or a small impact solar energy business, you need to know all the ins and outs of government compliance when you get those grants

Charitable giving isn’t just about dropping extra change in a donation jar or saying “yes” to a prompt at the cash register to tag on a dollar for a good cause. These practices are often categorized as “checkbook” philanthropy because they concern individuals writing a check, so to speak, after they’re prompted with an appeal for donations. This is a noble way for individuals to decide if some of their disposable income might find better use addressing an urgent cause.

But there’s another kind of philanthropy that’s more organized, strategic, and impactful, one that involves choosing a vehicle through which charitable activity is conducted. In this guide, we’ll take a look at three common charitable vehicles, weighing the benefits and tradeoffs of each—private family foundations, donor-advised funds (DAF), and limited liability companies (LLCs) used for philanthropic purposes—so you can determine which vehicle is best suited to put your family’s values into action and build a legacy.

Private Family Foundations

Private foundations are nongovernmental, nonprofit organizations often funded by a single source—typically an individual, family, or corporation. They’re tax-exempt under Section 501(c)(3). The Council on Foundations (CoF) reports that around two-thirds of all private foundations are family-managed. This is what people mean when they say “private family foundation,” which isn’t a distinct legal entity from a private foundation, but rather a way a private foundation is managed.

For instance, a private family foundation would be funded by members of one family and remain under the management of at least one family member. According to the CoF, “in many cases, second- and third-generation descendants of the original donors manage the foundation.” This makes the private foundation an ideal charitable vehicle for families who want to make a long-term philanthropic commitment with a deep involvement in how their charitable dollars are spent.

What makes private foundations attractive is the high level of control they offer. Families can define the mission, decide where grants go, hire staff, and manage investments. As for responsibilities, private foundations must distribute at least 5% of their assets annually to charitable purposes. They also must fulfill their administrative requirements, like filing IRS Form 990-PF each year and paying an excise tax on investment income.

Pros:

Control: Full authority over investments, grantmaking, staffing, and mission. Families can determine how assets are managed, what causes to support, and who is involved in the decision-making.
Legacy: Designed for long-term, multi-generational involvement. Successors can be named and integrated into the foundation’s governance, creating continuity between your family’s values and future generations.
Versatility: Foundations support a relatively wide range of charitable activities, including international giving. Private foundations can also run their own programs directly.

Cons:

Cost and Complexity: High upfront costs and ongoing expenses must be expected in private foundations, as well as legal, accounting, and administrative requirements.
Regulatory Burden: Annual filings, detailed reporting, and compliance with distribution rules may become burdensome.
Excise Tax: A 1.39% tax on investment income reduces total funds available for grantmaking. It’s minor, but worth factoring in for long-term planning.

Common Misconception: “Private foundations are a way to shield wealth from taxes indefinitely.” Not quite. Private foundations have to distribute at least 5% of their assets annually and pay an excise tax on investment income. They’re subject to strict IRS regulations, and they’re monitored for compliance.

Donor-Advised Funds (DAFs)

A donor-advised fund (DAF) is a great choice for families who aren’t interested in the administrative and managerial responsibilities of a private foundation. A DAF is an account that allows donors to contribute assets and recommend grants, while the fund is ultimately managed by a sponsoring charity (often a financial institution). In other words, the donor retains advisory power, while the sponsor retains control of the fund.

DAFs are a good fit for families of donors that are looking for simplicity, streamlined recordkeeping (since you don’t need to keep track of every gift acknowledgement), and tax efficiency without losing say in how their contributions could be used. For instance, you could recommend that your donations be used as a source of long-term funding for any IRS-qualified public charity.

Some people enjoy the anonymity that DAFs make possible while donating to causes, but DAFs can also be established in your family’s name. To that end, you can recommend successors to build and maintain a legacy of giving while the sponsoring charity handles all compliance, investments, and distribution. Once a contribution is made to a DAF, you receive an immediate tax deduction.

Pros:

Immediate Tax Deduction: Contributions are deductible in the year they’re made, even if grants are distributed later. That timing flexibility makes DAFs a useful year-end tax planning tool.
Low Maintenance: The sponsoring organization manages compliance, accounting, and investments, which means families don’t have to. There’s also no need to form a separate legal entity or file annual tax returns. It’s as close to hassle-free philanthropy as you can get.
Tax-Free Growth: Assets in a DAF can grow without being taxed, increasing the pool of funds available for future grants.

Cons:

Limited Control: As a donor, you only have advisory power over a DAF. Final decision power rests with the sponsoring charity. Typically, donor recommendations are approved, but there’s no legal guarantee.
No Mandatory Payout: Unlike private foundations, there’s no minimum annual distribution requirement. Funds can sit idle for years unless the donor takes initiative. This makes it easier to delay or avoid actual charitable activity.

Common Misconception: “Aren’t donor-advised funds just tax shelters without any oversight?” DAFs are regulated by the IRS and managed by sponsoring organizations. While donors recommend grants, the charity holds ultimate control over funds, ensuring they’re directed to charitable causes.

LLCs Used for Philanthropic Purposes

Unlike foundations and DAFs, LLCs that are used for philanthropic purposes are not tax-exempt entities. They’re for-profit limited liability structures that some families and high-net-worth individuals use to pursue their goals, like grantmaking, political advocacy, and impact investing, without the constraints of traditional nonprofits. While sometimes informally referred to as “charitable LLCs,” this is a bit misleading—these entities aren’t charities in a legal or tax-exempt sense. What distinguishes them is their ability to blend financial returns with social goals in one flexible platform.

The primary appeal is control and range. LLCs can make grants to nonprofits, fund political campaigns, lobby lawmakers, and make equity investments—all under the same structure. These activities are more constrained under a 501(c)(3) foundation. As such, LLCs are often used by high-net-worth individuals or families who want to engage in more nontraditional and flexible forms of philanthropy.

But this flexibility comes at a tax cost. LLCs are typically taxed as “pass-through” entities, meaning any income the LLC generates is passed directly to owners, shareholders, or investors and reported on the members’ personal tax returns, regardless of whether that income is actually distributed. Likewise, LLCs don’t offer the same upfront tax deductions as the other models. Deductions would only apply if the LLC itself donated to a qualifying charity, not if a contribution was made to the LLC.

Pros:

Flexibility: LLCs aren’t bound by nonprofit restrictions and can engage in lobbying, for-profit investing, and political giving. That makes them a powerful tool for donors who want to influence systems to address philanthropic and business concerns.
Control: Owners retain full operational control without oversight from a board or nonprofit regulator.
Privacy: LLCs don’t have to file public disclosures like Form 990. Salaries, grants, and investments can be kept private, which may appeal to families who value privacy.
Tax Strategy: While not tax-exempt, LLCs offer flexibility in how losses and gains are handled. Impact investment losses can be used to offset other income, while profits can be recycled into future projects.

Cons:

No Upfront Tax Deduction: Donors only receive deductions when the LLC gives to a qualifying 501(c)(3), which adds a step and limits immediate tax benefits. This may be a concern for families with near-term planning needs.
Tax Exposure: Income from the LLC flows through to members and is taxable, even if it isn’t distributed. That means donors could face tax bills on earnings they don’t actually receive.

Common Misconception: “LLCs can’t serve charitable purposes.” They can, just not in the conventional, tax-exempt sense. For philanthropists seeking charitable and commercial impact, the LLC may be the only model that offers both.

Choosing the Right Structure

There’s no “best” charitable vehicle—it depends on your family’s goals, tax situation, and appetite for control and complexity. Private foundations are ideal for families who want to be hands-on, create a lasting legacy, and directly shape how charitable funds are used, but they do require significant administrative work and costs. Donor-advised funds are streamlined, cost-effective, and tax-efficient, but they offer less control and may require donor initiative to maximize charitable outcomes. LLCs offer maximum flexibility and privacy, but they don’t provide the same tax benefits and require more coordination to be effective.

Families often combine structures to meet their needs. For instance, a DAF can support regular grantmaking with minimal effort, while an LLC can handle impact investing or other activities that a traditional nonprofit can’t. As your charitable vision grows or as your interests shift, the vehicles you use can shift too.

Common Misconception: “Once you choose a charitable structure, you’re locked in.” You’re not. Structures can be reconfigured, expanded, or adapted over time to align with new goals or tax strategies.

About the Author

Bo Parfet is Head of Growth at DLP Capital, a 5+ billion-dollar company, and a 3X author, speaker, and mountaineer. He received his MBA from the Kellogg School of Management at Northwestern and a Master’s Degree in Economics from the University of Michigan. Among his mountaineering adventures, he’s climbed the Seven Summits and K2, and is embarking on an endeavor to ski down Mount Everest to raise money to bring eyesight to 100,000 blind people. He lives with his wife and two sons in Boulder, CO. You can find him on other social media platforms @boparfet.

Disclaimer: Statements are those of Bo Parfet only and are not guaranteed, nor should such statements be relied upon. Forward-looking statements are expressions and beliefs of Bo Parfet and should not be relied upon.

Past performance is not a guarantee or indicator of future results. The information provided is for informational purposes only and does not constitute a recommendation, an offer to sell, or a solicitation to buy. Investment decisions should be made based on your individual financial situation and objectives. Please consult your attorney, tax advisor, or financial professional before making any investment.

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Werner Lanthaler Reveals Why Wlanholding Avoids Traditional VC Models

Bhok Thompson — Tue, 17 Jun 2025 04:55:04 +0000

Most life sciences investors follow predictable patterns: raise funds from limited partners, deploy capital across portfolio companies within defined timeframes, and exit investments to generate returns for fund investors. Werner Lanthaler has deliberately constructed Wlanholding GmbH to operate outside these conventional frameworks, creating what amounts to an alternative approach to biotechnology investment.

As founder and CEO of Wlanholding, a family office focused on life sciences and high-tech sustainability investments, Lanthaler has designed his investment platform to prioritize long-term value creation over the rapid return cycles that characterize traditional venture capital. This approach reflects the lessons he learned during his tenure as CEO of Evotec SE, where he experienced firsthand how external investor timelines can sometimes conflict with the lengthy development periods necessary for pioneering biotechnology innovation.

The contrast becomes apparent when examining Wlanholding’s portfolio companies: Proxygen GmbH developing molecular glue degraders, Cerabyte GmbH creating ceramic-based data storage solutions, Solgate GmbH targeting complex protein families, Planet Pure GmbH producing organic consumer products, and Cyment developing sustainable building materials. Each represents ambitious science that benefits from patient capital rather than pressure to achieve rapid milestones for fund reporting purposes.

Family Office Structure Creates Different Investment Dynamics

Wlanholding operates as a family office rather than a traditional venture capital fund, creating fundamentally different relationships between the investment platform and portfolio companies. This structure eliminates many of the tensions between investor reporting requirements and company development needs that can complicate traditional VC relationships.

Family office investment decisions can focus on scientific merit and long-term market potential rather than fund marketing requirements or limited partner expectations. This freedom allows Wlanholding to invest in companies that traditional VC funds might consider too early-stage, too technically complex, or too specialized for their portfolio construction needs.

The family office structure also enables more flexible deal terms and ongoing support arrangements. Without pressure to demonstrate rapid progress to external fund investors, Wlanholding can provide sustained support through the inevitable setbacks and strategic pivots that characterize biotechnology development. This stability often proves crucial for companies developing novel technologies that don’t follow predictable development timelines.

The operational implications extend to board participation and strategic guidance. Rather than managing relationships with dozens of portfolio companies to satisfy fund diversification requirements, the family office structure enables deeper engagement with a more concentrated portfolio of companies where meaningful value creation support is possible.

Extended Investment Timelines Enable Ambitious Science

Traditional venture capital funds typically operate on 7-10 year cycles with pressure to generate returns within predetermined timeframes. Wlanholding operates without these artificial constraints, enabling investment in companies pursuing scientific objectives that may require extended development periods to reach their full potential.

This extended timeline approach proves particularly valuable for companies that are developing platform technologies rather than single-product applications. Solgate’s focus on solute carrier proteins is an example of the kind of ambitious science that benefits from patient capital. These proteins represent a large class of therapeutic targets that have been historically challenging to address, requiring sustained research efforts and iterative development approaches that don’t fit neatly into traditional VC timelines.

The patient capital philosophy extends to supporting companies through multiple development phases and market applications. Rather than pressuring portfolio companies to pursue exits at the first viable opportunity, Wlanholding evaluates whether continued investment and support can create significantly greater long-term value by enabling companies to capture larger market opportunities or develop additional applications for their core technologies.

Concentrated Portfolio Approach Over Diversification Models

Traditional venture capital follows portfolio construction models designed to generate returns through a small number of highly successful investments that compensate for multiple failures or modest successes. This approach requires VCs to make numerous investments with limited resources available for deep engagement with individual companies.

Werner Lanthaler has built Wlanholding around a concentrated portfolio approach that enables deeper engagement with each investment. Rather than spreading capital across dozens of companies with limited attention available for each, the concentrated approach enables meaningful partnership relationships that can significantly influence company development outcomes.

This concentrated investment strategy requires higher conviction in investment decisions but creates opportunities for more substantial support during critical development phases. The approach aligns well with the complex, relationship-intensive nature of biotechnology innovation, where strategic partnerships and deep domain expertise often determine success more than capital availability alone.

The concentrated approach also enables better integration between portfolio companies, facilitating knowledge sharing and collaborative development opportunities that larger, more diversified portfolios cannot easily coordinate. Companies like Proxygen and Cerabyte can benefit from shared insights and complementary expertise that emerge from closer portfolio integration.

Active Partnership Beyond Financial Investment

Traditional venture capital relationships often involve providing capital in exchange for board representation and periodic monitoring, with limited operational involvement beyond major strategic decisions. Wlanholding’s approach emphasizes active partnership and operational support that leverages Lanthaler’s extensive industry experience and professional network.

This active partnership approach draws on his experience building Evotec from approximately 200 employees to over 5,000 while expanding revenue from €40 million to €800 million. Portfolio companies benefit from strategic guidance based on direct experience with scaling biotechnology companies, navigating regulatory processes, and developing strategic partnerships with pharmaceutical companies and academic institutions.

The active partnership involves hands-on problem-solving during critical development phases. Rather than simply monitoring progress through board meetings and investor updates, Wlanholding engages directly with portfolio companies to overcome technical challenges, navigate regulatory complexities, and develop strategic partnerships. This level of involvement often proves essential for companies developing breakthrough technologies that require specialized expertise and industry relationships.

Long-Term Value Creation Over Rapid Exit Strategies

Traditional VC models prioritize generating returns within fund timelines, creating pressure for portfolio companies to pursue exit opportunities that may not optimize long-term value creation. Wlanholding’s approach emphasizes building sustainable competitive advantages and market positions that create lasting value, even if this requires longer development timelines.

This long-term orientation allows portfolio companies to build robust scientific foundations, develop multiple product applications, and establish market positions that support sustained growth rather than optimizing for quick exits. Cerabyte’s development of revolutionary data storage technology exemplifies this approach, pursuing ambitious technical objectives that may take years to fully commercialize but could create substantial long-term value.

The long-term approach extends to supporting companies through multiple growth phases and market expansions. Rather than exiting when companies achieve initial success, Wlanholding evaluates whether continued investment can enable companies to capture significantly larger opportunities by expanding into adjacent markets or developing additional applications for their core technologies.

Scientific Expertise Drives Investment Decisions

Traditional venture capital often relies on pattern recognition and financial analysis to evaluate investment opportunities, with limited deep scientific expertise in specific technology areas. However, Werner Lanthaler brings extensive domain knowledge from his experience in biotechnology development, enabling more sophisticated technical evaluation of investment opportunities.

This scientific expertise allows Wlanholding to identify promising opportunities that traditional VCs might overlook due to technical complexity or unfamiliarity with specific scientific domains. Companies developing advanced platform technologies, addressing difficult biological targets, or pursuing novel therapeutic approaches benefit from investors who understand the technical merits and development challenges rather than relying primarily on market comparisons.

The scientific expertise also enables more effective ongoing support and strategic guidance. Lanthaler can provide insights based on direct experience with similar technical challenges, regulatory requirements, and commercial development pathways rather than generic business development advice that characterizes many traditional VC relationships.

Risk Management Through Deep Domain Understanding

Rather than managing investment risk through portfolio diversification alone, Wlanholding’s approach emphasizes a deep understanding of the scientific and technical risks associated with each investment. This domain expertise enables more accurate risk assessment and more effective risk mitigation strategies than traditional portfolio construction approaches.

The risk management approach considers the specific technical challenges, regulatory pathways, and market development requirements associated with each company’s approach. Rather than applying generic risk models across diverse investments, the deep domain understanding enables tailored support strategies that address the most critical success factors for each portfolio company.

This sophisticated risk assessment extends to strategic partnership development and competitive analysis. Understanding the technical differentiation and competitive advantages of portfolio companies enables more effective positioning for strategic partnerships, acquisition opportunities, and market development initiatives.

Through his alternative approach to biotechnology investment, Werner Lanthaler has created an investment platform that is uniquely positioned to support the most ambitious scientific innovations while generating sustainable returns for all stakeholders. Wlanholding’s model shows how alternative investment structures can better serve both entrepreneurs and investors in complex, technology-intensive industries that require patient capital and deep domain expertise.

The success of this approach suggests opportunities for evolution in how life sciences innovation is funded and supported, moving beyond standardized VC models towards more flexible structures that align investor capabilities with the specific requirements of breakthrough biotechnology development.

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AI and the Accelerate 2050 conference

Julie Steinbeck — Sun, 23 Feb 2025 07:40:39 +0000

Singapore’s Super Tree Grove at Gardens by the Bay. Is this the future of cities?

Artificial Intelligence, or AI, has the power to transform our world, helping farmers plant seeds and water plants at the right time. It can help develop solutions in renewable energy so we can scale climate solutions that help wean the world off oil and plastics. But when it comes to AI, we need some kind of global consensus on a couple of things: what do we define is “good” for the planet, and what do we want the future to look like? Global leaders are coming together these questions and fresh challenges and opportunities in AI.

This event announcement comes off the heels of an AI and the planet UN project that includes 193 UNESCO signatories –– with some of the countries being the most violent on earth. Now is the time to wake up stakeholders to build the foundations of AI so we can truly use it for good.

The Accelerate 2050 conference in Brindisi, Italy, brings together visionaries, innovators, and leaders to address global challenges in AI. One of the key focus areas is AI for Good, leveraging artificial intelligence to solve pressing societal and environmental issues. This initiative is not just about technology but about creating a positive impact on humanity and the planet.

The conferences bring together experts from various sectors—including investors, companies, consultants, non-profits, and government officials—to discuss and promote sustainable practices and innovations.

Key Features of Accelerate 2050 Conferences:

The conferences cover a range of topics such as climate technology, renewable energy, carbon markets, biodiversity, impact investing, and the role of artificial intelligence in promoting sustainability. Events have been held in multiple locations, including New York City and Santa Monica, California. For instance, the New York event took place on May 8-9, 2024, at the New York Society for Ethical Culture Building. The Santa Monica event was held on November 6-7, 2024, at the Expert Dojo.

One of the topics is AI for Good which refers to the ethical and responsible use of artificial intelligence to tackle challenges like climate change, poverty, healthcare accessibility, and more. It emphasizes using AI not just for profit but to improve lives and promote sustainability. This includes:

Environmental Conservation: AI models to monitor biodiversity and carbon emissions.
Social Impact: Enhancing education, healthcare, and community development.
Ethical AI: Ensuring transparency, fairness, and accountability in AI systems.

How Other Generations and Skill Sets Can Contribute

AI for Good isn’t just for the tech-savvy; it requires diverse experiences and interdisciplinary approaches. Here’s how people from different generations and backgrounds can participate:

Mentoring and Leadership:Experienced professionals can mentor young AI enthusiasts, guiding them on ethical considerations and societal impacts.

Policy and Ethics:Those with backgrounds in law, sociology, or public policy can contribute to creating ethical frameworks and guidelines for AI deployment.

Creatives and Communicators: Designers, writers, and educators are needed to make AI solutions accessible and understandable to non-technical audiences. Storytelling and communication strategies can help raise awareness about the impact of AI for Good.

The meeting provides a great chance to network with people in AI who share similar goals. Some of the confirmed speakers include:

Vanessa Adams – Level4International
A consultant service that focuses on international development, aiming to drive social impact and sustainability.
Saeed Al Dhaheri – AI UNESCO / AI Ethicist
Specializes in AI ethics, ensuring responsible AI deployment globally.
Niclas Andersson – Untap
A water from air business.
Fiona Banister – Decarbonized.org
Advocates for environmental sustainability through decarbonization initiatives.
Brian Bartholomeusz – Stanford – TomKat Center
Leads efforts in energy innovation and tech transfer at Stanford University.
Karl Burkart – One Earth (Invited)
Focuses on environmental sustainability, leveraging technology for conservation.
Michael Capponi – GEM
Leads global empowerment and humanitarian aid initiatives. Global Empowerment Mission was formed in response to the 2010 Haiti Earthquake to deliver the most amount of aid, to the most amount of people in need, in the shortest amount of time and with the least amount of costs to donors.
Claudia D’Andrea – Tetra Tech
Tetra Tech is a global consulting and engineering services firm that provides a wide range of services related to environmental, infrastructure, and energy sectors.
Edivando Vitor do Couto – Alteromani
Focuses on renewable energy and sustainable solutions.
Jillian Dyszynski – American Forest Foundation
Works on environmental conservation and forestry initiatives.
Gene Eidelman – Azure Printed Homes
Pioneers sustainable housing solutions using advanced manufacturing techniques.
Brian Fairhurst – Anthropogenic
Utilizes advanced impact intelligence to address environmental challenges.

For more information about upcoming events, speakers, and registration details, you can visit the official Accelerate 2050 website.

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How the mobility scooter industry is tackling carbon emissions

Bhok Thompson — Fri, 21 Feb 2025 13:17:27 +0000

Mooncool electric trike for seniors and people who need the stability of 3 wheels

The mobility scooter market is increasingly focused on addressing carbon emissions and enhancing environmental sustainability. As the demand for mobility solutions grows, especially among the ageing population, the industry is taking steps to minimise its environmental impact. Here we provide a breakdown of how the mobility scooter market is tackling carbon emissions.

Electric Power and Zero Emissions

Electric-Only Operation: Mobility scooters are predominantly electric, meaning they produce zero exhaust emissions during use. This is a major advantage over fossil fuel-powered vehicles, contributing to reduced air pollution in urban areas.
Battery Advancements: The shift from traditional lead-acid batteries to more efficient lithium-ion batteries is underway. Lithium-ion batteries offer better energy density, longer life cycles and faster charging times, which collectively reduce the environmental footprint by enhancing energy efficiency and reducing waste.

Sustainable Manufacturing Practices

Eco-Friendly Materials: Manufacturers are increasingly using sustainable materials in scooter production. This includes recyclable plastics and metals, which help lower the environmental impact associated with raw material extraction and processing.
Energy-Efficient Production: Efforts are being made to adopt energy-efficient manufacturing processes, which can significantly reduce carbon emissions. This includes optimising supply chains, reducing waste and implementing cleaner production technologies.

Lifecycle Emissions and Recycling

Comprehensive Emissions Assessment: To fully understand the carbon footprint of mobility scooters, it is important to consider lifecycle emissions, which include emissions from manufacturing, operation and disposal. The industry is working towards minimising emissions at each stage of the lifecycle.
Battery Recycling Initiatives: Proper recycling and disposal of batteries are crucial for reducing lifecycle emissions. Manufacturers are developing return initiatives and recycling schemes to ensure that batteries and other components are disposed of responsibly and materials are reused where possible.

Renewable Energy Integration

Solar Charging Solutions: Some mobility scooters are being designed with solar charging capabilities, allowing users to harness renewable energy. This reduces reliance on grid electricity and promotes the use of clean energy sources.
Green Energy Partnership: Manufacturers are exploring partnerships with renewable energy providers to offer green charging solutions, further reducing the carbon footprint associated with electricity consumption.

Regulatory and Market Drivers

Government Incentives: The UK government is offering incentives for the development and adoption of low-emission technologies. This includes grants, tax breaks and subsidies for manufacturers and consumers, encouraging the production and purchase of environmentally friendly mobility scooters.
Consumer Demand: As consumers become more environmentally conscious, there is growing demand for sustainable mobility solutions. This market pressure is driving manufacturers to innovate and prioritise carbon reduction in their product offerings.

Urban Infrastructure and Integration

Smart City Initiatives: As part of wider smart city initiatives, the UK is investing in infrastructure that supports electric mobility, including charging stations and dedicated lanes for mobility scooters. This integration helps reduce emissions by promoting the use of electric vehicles over traditional ones.

The mobility scooter market is actively working to reduce carbon emissions through advancements in electric power, sustainable manufacturing practices and renewable energy integration. By focusing on lifecycle emissions and responding to regulatory and market drivers, the industry aims to provide environmentally friendly mobility solutions that meet the needs of users while contributing to a more sustainable future. As these efforts continue, mobility scooters will play an increasingly important role in reducing urban carbon emissions and promoting cleaner, greener transportation options in the UK.

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Why Neobanks Are the Future of Sustainable Finance

Bhok Thompson — Mon, 17 Feb 2025 14:39:49 +0000

In an era where sustainability is no longer just a buzzword but a business imperative, neobanks—digital-only banks—are emerging as an eco-friendly alternative to traditional banking institutions. With their paperless operations, reduced carbon footprints, and commitment to ethical investing, neobanks are redefining the financial industry by aligning with the values of environmentally-conscious consumers.

The Environmental Toll of Traditional Banking

Brick-and-mortar banks have long been part of the global financial landscape, and there is comfort meeting with bank tellers here and there especially if you are about to sign on for a 25-year mortgage, but their environmental impact is significant. And you don’t need one most of the time. From energy-intensive office buildings to paper-heavy processes, traditional banks leave a substantial carbon footprint.

According to estimates, the global banking sector contributes significantly to emissions due to:

Branch Operations: Large physical branches require energy for lighting, heating, and cooling, adding to carbon emissions.

Paper Usage: Traditional banks still rely on paper for contracts, statements, and application forms, leading to deforestation.

Fossil Fuel Investments: Many large banks finance industries with high carbon emissions, including oil, gas, and mining.

Neobanks: A Digital-First, Eco-Friendly Alternative

Unlike conventional banks, neobanks operate entirely online or via mobile apps. This shift eliminates the need for physical branches, reducing energy consumption and real estate-related emissions. Here’s how they contribute to sustainability:

Paperless Banking

Neobanks replace paper-based processes with digital documentation. Account opening, statements, and transactions occur within apps, reducing paper waste and cutting down on deforestation.

Lower Energy Consumption

Since neobanks lack physical locations, they do not require office buildings, ATMs, or large-scale data centers. Instead, they rely on cloud computing, which, when optimized, is significantly more energy-efficient than maintaining bank branches across multiple cities.

Ethical and Green Investing

Many neobanks differentiate themselves by offering ethical banking options, refusing to fund fossil fuel projects, and investing in sustainable industries. For example, banks like Aspiration and Tomorrow Bank pledge to fund renewable energy projects and plant trees based on user transactions.

Carbon Footprint Transparency

Some neobanks go beyond being neutral and actively encourage customers to make eco-friendly financial choices. Apps like Bunq and Revolut provide carbon footprint tracking for purchases, enabling users to see how their spending habits impact the planet.

Incentivizing Sustainable Purchases

Neobanks often partner with green businesses to offer rewards for eco-friendly spending. Cashback incentives for shopping at sustainable brands or donations to environmental causes with every transaction make green choices more appealing.

The Future of Green Banking

As consumers grow increasingly concerned about sustainability, the banking sector is shifting toward greener banking alternatives. Neobanks are leading this charge by leveraging technology, reducing waste, and aligning their investments with environmentally responsible initiatives. Their success signals a broader movement where financial institutions are expected to be as conscious of their impact on the planet as they are about their bottom line.

By choosing a neobank, consumers are not only simplifying their financial lives but also making a direct contribution to a more sustainable future. The next era of banking isn’t just digital—it’s green.

Neobanks may be useful for some people at some periods of their lives but as children happen and investing becomes part of a household, regular brick and mortar banks have their place. Perhaps some hybrid of both forms will form the future of banking.

Some successful neobanks in the U.S. include:

Chime – One of the most popular neobanks, known for its no-fee banking, early paycheck access, and automatic savings features.
Varo Bank – The first U.S. neobank to receive a national bank charter, offering high-yield savings and no overdraft fees.
Aspiration – A sustainability-focused neobank that funds reforestation projects and avoids fossil fuel investments.
Current – Focuses on faster direct deposits, cashback rewards, and budgeting tools.
SoFi – Originally a student loan refinancing company, SoFi now offers banking services with high-yield savings and investment options.

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Why ESG Investing and Green Forex Are the Future of Finance

Bhok Thompson — Wed, 12 Feb 2025 11:46:30 +0000

Saudi Aramco is building a mile-long futuristic “sustainable” city built with billions in investment. Is it sustainable though?

Discover how sustainable investing and Green Forex can transform finance. Learn how ESG factors influence currency stability for a greener future.

Sustainable investing, which was once a niche concept, has now become a mainstream financial strategy. Today’s investors understand and value environmental, social, and governance (ESG) factors more than ever, making them key considerations in allocating their assets. This change comes from two main factors: clients increasingly want their investments to align with their values, and there’s growing recognition that sustainable practices can lead to better long-term financial results.

What Are Sustainable Investing and Green Forex Strategies?

Sustainable investing means investing in companies that follow ethical and responsible practices, which helps them operate more environmentally and socially consciously. The fundamental purpose behind sustainable investing revolves around using financial resources to drive positive societal changes and benefits. Investors have various options, including buying shares in companies producing solar panels or biofuels or joining community loan funds.

The three main subheadings under sustainable investing represent various investment areas in this field.

Environmental investments evaluate companies’ management of non-renewable resources and their approach to climate issues and clean energy transitions.
The social component of sustainable investing examines initiatives that address human rights issues and diversity concerns. These topics cover both gender equality and support for underprivileged communities.
The governance element of sustainable investing evaluates companies that promote business ethics alongside trust, transparency, and marketplace compliance. These businesses prioritize ethical practices above all else while treating profits as a secondary goal within their organizational structure.

Sustainable investment has also influenced the forex market by creating “Green Forex.” This foreign exchange form is growing on MT4 trading platforms. Why? Investors now assess ESG factors when evaluating currency strength because countries with eco-friendly policies often experience improved currency stability.

According to an IISD publication by David Uzsoki, in 2036, nearly all global assets under management could incorporate ESG principles. Sustainable investing and Green Forex could play a pivotal role in the future of finance. Let’s find out more.

Invest in agriculture

The Rise of Sustainable Investing, Market Expansion, and Growth Trends

According to MSCI, ESG Investing began back in the 1960s. However, during that era, people invested in them as a political statement, with investors avoiding stocks linked with tobacco. Today, this concept has grown beyond political activism. It is now a values-based part of financial analysis. Investors see it as a complementary strategy with fewer “activist” connotations.

Sustainable investing has come a long way in its over six decades of existence. Grand View Research reports that the global ESG investing market was valued at USD 25.10 trillion in 2023. Europe dominates with 85% of sustainable funds, totaling USD 2.5 trillion in 2023. In the same report, the market is projected to grow at a compound annual growth rate (CAGR) of 18.8% from 2024 to 2030. The growth will stem from rising awareness and demand for value-aligned, sustainable investments.

ESG assets will keep rising as investors see their long-term potential. In 2023, sustainable funds returned 12.6%, outperforming traditional funds’ 8.6%. This outperformance spans equity and fixed-income assets. Therefore, sustainable investing is not just an ethical choice but a financially sound one.

Green Forex Strategies – A New Frontier

The forex market is the world’s largest financial market. Currency trade is based on economic, political, and social factors. Traders have traditionally focused on interest rates, inflation, and geopolitical tensions, which aid in predicting currency movements. However, this doesn’t seem so anymore, with the ESG wave reshaping forex trading.

Countries with strong ESG policies attract more foreign investment, boosting their currency value. Conversely, nations with poor sustainability may see weaker currencies. That said, here are case studies on how ESG impacts currency values;

The Euro and Green Energy policies: The EU implements green policies like the European Green Deal. This aims for carbon neutrality by 2050. These initiatives make the euro attractive to environmentally conscious investors. This way, the euro has stability.
Norway’s Sovereign Wealth Fund: Norway integrates ESG principles into its sovereign wealth fund management. They prioritize investments in sustainable industries. This strategy supports the Norwegian krone’s stability despite changes in oil prices.

Future Predictions and Emerging Trends

As the world advances towards a more sustainable future, ESG factors will play an essential role in financial investments such as forex markets.

Investors who incorporate ESG financial assets into their portfolios will likely have a competitive edge. Central banks may also set monetary policies based on ESG factors.

As green policies and ethical governance become the norm, here are key trends to anticipate:

Increase in ESG-oriented investments
Investments in renewable energy, particularly solar and wind
Redirecting financial resources to protect and manage natural ecosystems sustainably
Carbon trading and CO₂ footprint offsetting
Technological Advancements — Blockchain and AI enhancing ESG reporting transparency and efficiency

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Beyond Consumer Trends: The Holistic Approach to Sustainable Product Success Ashley Kleckner, SVP, Terviva

Ashley Kleckner — Wed, 12 Feb 2025 08:15:36 +0000

Terviva is an agricultural innovation company partnering with farmers to grow and harvest pongamia, a climate-resilient tree which helps to reforest land and revitalize communities.

At a recent panel discussion, the moderator posed a familiar question: “Why is your company confident that your sustainable product will be successful?” One panelist eagerly responded, “Because it’s what consumers want!”

While optimistic, this response reflects a common misconception: consumer interest in sustainability automatically translates to commercial success. This misconception becomes especially evident when you look beyond consumer markets where purchasing managers need to balance the environmental objectives with other more fundamental things, like budgets and the capabilities of the product.

While it’s undeniable that consumers are increasingly prioritizing sustainability—data reveals that they are willing to pay a 9.7% premium for sustainable products—this demand is only one piece of a much larger puzzle. Successful sustainable products must engage multiple stakeholders across the entire value chain, and the success of sustainable products in 2025 will hinge on their ability to address broader business imperatives beyond mere consumer trends.

Think of it this way: sustainability is not just a passing fad or the latest hot-button issue; it’s a comprehensive business strategy.

Ashley Kleckner, SVP, Terviva

The Path to Success: A Holistic Approach

So, what do we mean when we say “broader business imperatives?” Fundamentally, we’re talking about how the business operates, its overall operational efficiency, and how a product addresses key sustainability objectives (like land and water consumption or the carbon impact of production).

At Terviva we’ve learned that some of the reasons investors and partners want to engage with us to plant trees are not just because it’s a compelling story.

They are compelled by the risk mitigation benefits of our genetics and orchard design trials for example, and having patents around our IP for the end products provides proof points that mitigate go to market risk. Here are three critical aspects that industry leaders can learn from our experience in bringing sophisticated partners onboard in their quest for sustainable success:

Product Innovation: Sustainable products must solve real challenges for stakeholders. This means developing solutions that meet consumer demand, enhance operational efficiency, and reduce environmental impact. Companies should prioritize innovative approaches that regenerate ecosystems, optimize resource use, and create value across the supply chain.

For example, consider the agricultural sector: companies that invest in regenerative farming practices improve soil health and increase crop yields, addressing consumer demand for sustainable food and efficient production. One study shows that regenerative farming practices can increase farmer profits by 60% on cereal and oilseed crops and can reduce yield losses from extreme weather conditions by half.
Operational Excellence: Efficiency is key to sustainable success. Organizations must strive to maximize yield while minimizing waste. This involves adopting advanced technologies and practices that enable greater productivity with fewer resources. Companies that focus on operational excellence will meet market demand and contribute positively to environmental goals.

A striking statistic illustrates this point: a report from the World Economic Forum indicates that companies adopting circular economy principles can reduce operational costs by up to 30%. That figure could be even greater, depending on the industry, with one 2017 study from the World Resources Institute showing that every $1 spent by businesses on reducing food waste results in $14 in operational cost savings.
Market Integration: Sustainable products must address fundamental business challenges, including carbon emissions, land use, and supply chain dynamics. By aligning sustainability initiatives with core business objectives, companies can create compelling value propositions that resonate with stakeholders at all levels.

This integrated approach fosters collaboration and drives meaningful progress toward sustainability goals. For instance, automakers that invest in electric vehicle technology respond to consumer demand and tackle regulatory pressures and long-term viability in an increasingly eco-conscious market. Equally, companies that build sustainable, short supply chains tend to be more resilient to the kinds of disruption we saw during and immediately after the COVID-19 pandemic.

The bigger picture

The key takeaway for industry leaders is clear: sustainable products will flourish in 2025, not just because they are trendy, but because they tackle critical business challenges while delivering conservation benefits. Companies prioritizing holistic solutions—addressing the needs of consumers, businesses, and communities—will be best positioned to lead the charge toward a sustainable future.

In an era where sustainability is a long-term business strategy, embracing this multifaceted approach is essential for long-term success and industry leadership. As we progress, the challenge will be to sustain the strong momentum towards sustainability. By advocating for sustainable business practices and incorporating them into our own operations, we show that you don’t need to choose between the planet and the bottom line.

::Terviva

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