"Assets in sustainable mutual funds and exchange-traded funds (ETFs) hit an all-time high of USD 1.2 trillion at the end of the third quarter of 2020, with flows outstripping the overall market. We expect a strong continuation of this trend in 2021 and beyond, as investors finally lay to rest the notion that sustainable investing compromises returns. Shifting societal values and greater regulatory pressure are further strengthening client demand, lending additional support to

Nowadays our development system is based on the so-called Linear Economy, which exploits natural resources (mostly fossils) to generate goods and services, closing its production process with the elimination of waste, destinated to accumulate more and more. On the other hand, Circular Economy aims to reduce most of the waste, converting it into an available resource which can be reused as a secondary raw material into the production process. Every product or output, from the

Climate change has been marked as one of the most discerning issues of the 21st century. With the rising concerns over climate change and its associated risks on global economies, no one can afford to remain indifferent to consequences that will affect the whole world. All the United Nations 17 Sustainable Development Goals represent the risk areas that are jeopardizing businesses and societies. If left unattended, these risks will be worsening the current global scenario. On

The Sustainable Development Goals (SDG), in order to be achieved, are going to require a lot of investment. A lot of new infrastructures are going to have to be built, water desalination systems, waste recycling systems. A lot of new kinds of power plants are going to have to be constructed. A lot of healthcare outlays will be required. A lot of education outlays will be required... And many more. Like anything in building for the future, investing is at the core of achieving

Since the adoption of “the 2030 Agenda for Sustainable Development” in 2015, it has been observed that a lot of initiatives have been taken to meet the goals and achieve targets of sustainable development goals (SDGs). Governments are making policies and introducing legislation, corporations are showing their efforts to meet the needs of the 2030 Agenda through their corporate sustainability reports (CSR). However, a lot needs to be done and nations are lagging in their targe

Albert Einstein said, “In the middle of difficulty opportunity lies.” The consensus among the nations on sustainable development goals is the opportunity to abridge the shortcomings in our national policies, global businesses, and investment focus areas. To achieve the goals and objectives of the SDGs we must use our resources wisely as there will never be enough resources to put separate funding for all the problems at once. Like all other sectors, the investment sector is a

Knowing how to sell a company is a kind of art. Sometimes it's not just the passion that drives entrepreneurs and the purpose of venture capital funds, it's also the name of the game. The selling price on the one hand should reflect the value of the company at a given time and on the other hand produce conditions of mutual profit between the seller and the buyer and all the stakeholders involved. Determining the value of a company is critical to all parties in a transaction.

There's a belief that DCF and real options based valuations are competing methods and therefore, in a way, mutually exclusive. But this belief is wrong and both methods have their merits side-by-side. Once one accepts that a company's value has both a DCF component and an uncertain growth options component, it will become more clear how various businesses are priced. Hence, there are two things that must be clarified regarding DCF and complex methods, such as real options and

Making good decisions is important, both for our personal lives and for investments we want to make. Because the decisions we make today have a significant impact on our future, It is essential to start making better decisions now. For all those who are exploring ideas and considering what projects to invest in, I'll expand your way of decision-making, by adding another angle to the static techniques from corporate finance which are widely used. Traditionally, we assess the a

As 68% of the world population projected to live in urban areas by 2050, we better ask the question, what is it that makes a city "sustainable". And the answer that I want to give through this article is twofold. One, is that it is a green city. Green in the literal sense that there are parks and places of people and open areas combined, but also green in the sense that its economic impact on the environment, the ecological footprint of the city is also limited. The other dim

Did you know that over a billion people live without electricity? Most of these people live in rural areas in Sub-Saharan Africa. While they have to do without any electrical power at all, the rest of the world is using more and more electricity every year. Where still, most of it is generated by unsustainable non-renewable sources like coal, natural gas, and petroleum. The problem of energy is twofold. On the one hand, many have to live without any energy; meaning they are b

True value is created when a small or large idea is actually transformed into action. It starts with believing in the power of every positive change we make, in our daily lives, and in our companies and organizations. In the next article, I want to touch on two areas that in my humble opinion constitute the greatest challenge facing humanity, the SDG 2 and SDG 3 now. SDG 2 aims to end hunger, achieve food security and improved nutrition, and promote sustainable agriculture. A

An important role of finance is to allocate funding to its most productive use and to stimulate value creation. Finance can steer investments to sustainable companies and projects without sacrificing financial return and speed up dramatically the transition to a sustainable economy. In this way, finance can be a powerful force for positive change. Yet, some may ask, "how is that possible as finance is thought of as always looking for the highest financial return in the short

You are facing an important presentation. There is an essential agenda that you want to promote, a product that you want to sell, money for a venture that you want to build. You have given your all and you have reached a critical point where everything seems perfect or almost perfect and you are ready... However, almost is big almost. Your success now comes down to how you connect with your audience emotionally, given that people make emotional decisions on the whole, and kee

For the business world, embracing the SDGs is a smart business and reveals a lot of unleashed opportunities. But this is more than just another approach or direction of thought. It is about building long-term impact-generating foundations, especially from the investment point of view. So where should I start? Let's start with the planet we live in and especially with the biosphere. The biosphere is the surface and atmosphere of the Earth occupied by living organisms. Here we

In recent years there has been more and more understanding that business is not about profit maximization, but about creating value, societal value. Profits are a means, not an end in itself. Don't get me wrong, without profits no cooperation can exist. But without societal purpose, a lot of companies lack a license to operate, which in turn seriously hampers their longer-term financial sustainability, simply is that. As the famous saying goes, "Equal distribution, and fairne

Quite often we find ourselves having a conversation with people but they do not really listen to us. It's doubly frustrating when we're required to persuade and motivate people to go with us on a particular line of thought, but it does not happen. And if at stake is an idea that has a bearing on our livelihood or our society? And if we simply must not fail in the task because the price we pay will be unbearably high… Wouldn't it be helpful to have a set of skills that helped

As a businessman, entrepreneur, or manager in an organization, you'll be called upon to sell an idea to strangers from time to time. The idea might be a new venture, or a new product, or a new marketing campaign. In fact, it could be for anything that needs funding or budget approval. In my past, in the advertising world, I have had dozens of times to present strategic presentations for campaigns, and what made this challenge the most significant was the fact that the goal wa

Since the last decade, we are having a lot of debate and focus on climate change. Climate change is the buzzword these days and the activism for its advocacy is gaining momentum with every passing day. It is becoming the core area of focus for industries, corporations, tech giants, investors, and governments. People across the globe are either directly or indirectly affected by climate change. The gravity of the issue can be estimated from the various UN reports which indicat

Continuing my first article where I mentioned that management skills are the ones that will tip the scales in favor of choosing the team in which to invest, I continue a new one that reviews another critical dimension in investment decisions by savvy investors. Enjoy and be a smart investor! So we have a winning team, what next ?! Another attribute of companies I look for is the maximization of nonzero sumness (NZS). In a complex world with increasing interdependence, the bes