SYSTEM-LEVEL INVESTING

The concept, the book, and seven years of groundbreaking publications

Today’s social and environmental challenges are fundamentally destabilizing, new and different. They are global. They have tipping points that once passed cannot be reversed. They are systemic risks in a highly interconnected and complex world. And they threaten long-term investment returns across all asset classes in ways that traditional risk management cannot cope with. A growing class of investors—we call them system-level investors—has emerged in response and acknowledge that they have an impact, whether negative or positive, on the health of global systems and that those systemic challenges impact their portfolios in return.

System-level investors are going beyond portfolio construction and security selection, though, to include the adoption of new techniques that are explicitly designed to help investors influence global systems and limit broadly occurring undesirable outcomes from the outset. These approaches stress collaborative action, building shared knowledge bases, setting industry standards, and creating a rising tide of investment opportunities for all investors. They focus on key leverage points that can strengthen overall systems, enhance their resilience, and ensure their long-term sustainability.

21st CENTURY INVESTING

by William Burckart and Steve Lydenberg

21st Century Investing

21st Century Investing: Redirecting Financial Strategies to Drive Systems Change

by William Burckart and Steve Lydenberg

Two experienced and visionary authors show how institutions and individuals can go beyond conventional and sustainable investing to address complex problems such as income inequality and climate change on a deep, systemic level.

SYSTEM-LEVEL INVESTING PUBLICATIONS

Timeline

2021
Jun 08

Income inequality: one of the major systemic challenges of our time

Between 1980 and 2016, the incomes of the world’s richest 1% of people grew twice as much as the poorest 50% of people. As incomes soared for the wealthy, income inequality increased for more than half the countries worldwide. This has drastic impacts on our economic system: When the income…Read More

2020
Dec 08

TIIP’s Roadmap to Building the Financial System’s Resilience To Systemic Social Risk in the Wake of the Covid-19 Pandemic

New roadmap discusses lessons learned from the Covid-19 pandemic and outlines the way forward for policymakers, regulators, and investors New York, NY, December 8, 2020 – Covid-19 has killed more than a million people worldwide, sickened tens of millions more, created extreme volatility in global financial markets, and triggered the…Read More

Nov 10

TIIP contributes to report from The World Bank that examines climate change-related risks and opportunities for institutional investors in APEC

New York, NY, November 11, 2020 – Climate change poses extreme risks to the Asia-Pacific Economic Cooperation (APEC) region. Today, 70% of global natural disasters happen in the APEC region, the intensity and severity of which are expected to increase with climate change. A report from The World Bank and…Read More

Oct 13

Report from MMI and TIIP Moves Investors from ESG integration to managing systemic risks

Resource Moves Investors from ESG integration to managing systemic risks New York, NY, October 13, 2020 – Instability and unrest across all aspects of our lives–from financial markets to public health to racial reckonings to the environment–have forced investors to realize global systems are inextricably interconnected. Many have been and…Read More

Apr 20
Jan 20
2019
Sep 06
Apr 02
2018
Oct 31

New Report: Why and How Investors Can Respond to Income Inequality

Institutional investors have increasingly begun to realize that inequality – or the gap in income and wealth between the very affluent and the rest of society – has become one of the most noteworthy socioeconomic issues of our time. It has the potential to negatively impact institutional investors’ portfolios as…Read More

Aug 20

New Report Finds Investors Going Beyond Impact Measurement to Assess the Effectiveness of System-level and SDG Investing

“Roadmap” report offers guidance for measuring effectiveness of system-level and SDG Investing; Applies in-depth example to addressing SDG on Climate Action  Webinar on March 26th at 1 PM ET to Review Findings NEW YORK, NY, March 12, 2018 -A new report provides investors with a breakthrough roadmap for measuring the effectiveness of…Read More

2017
Nov 07

Effective Investing for the Long Term: Intentionality at Systems Levels

In this new report Effective Investing for the Long Term: Intentionality at Systems Level—written by Steve Lydenberg, William Burckart, and Jessica Ziegler—TIIP examines the strategies that more and more investors are utilizing to act with intentionality to balance efficiency in maximizing self-interested returns with maintaining the resilience of the environmental…Read More

Jul 27

New Report (and Webinar) Details How Central Banks and Development Finance Institutions Try to Affect the World’s Environmental, Societal, and Financial Systems

NEW YORK, NY, July 25, 2017 – A new report analyzes how and why central banks (CBs) and development finance institutions (DFIs) incorporate environmental, societal, and financial systems-level thinking into their activities. The report identifies five “on ramp” activities that these financial institutions use to address systems-level risks and rewards,…Read More

Jun 15

Investing in the New Industrial (R)evolution: Insights for asset owners and managers financing the circular economy

In this report, we examine the opportunities, challenges, and breakthroughs needed for investors to be able to finance the circular economy. Written by William Burckart (TIIP) and Jamie Butterworth (Circularity Capital), Investing in the New Industrial (R)evolution: Insights for asset owners and managers financing the circular economy details examples of…Read More

Mar 07

Systems-Level Considerations and the Long-Term Investor: Definitions, Examples, and Actions

This Occasional Paper from The Investment Integration Project (TIIP) addresses the question of how asset owners and managers can identify environmental, societal and financial systems-level issues relevant to their investment processes. Integration of these systems-level considerations can help investors manage long-term risks and rewards while seeking competitive portfolio-level returns. The…Read More

2016
Nov 06

State of the Industry Analysis: Tipping Points 2016

This state of the industry report documents the scope and variety of systems-level and related approaches undertaken by 50 asset owners and managers. It describes the activities they have executed, the tools they have used, the progress they have made and what research and support is necessary for further progress.…Read More

2015
Nov 20

Towards A Theory and Practice

TIIP’s inaugural paper is “Portfolios and Systemic Framework Integration: Towards a Theory and Practice“, which lays the groundwork for the project and argues that the strength or weakness of environmental, societal and financial systemic frameworks substantially impacts the ability of investors to generate returns. Without the smooth function of these…Read More

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