In this episode, David Blood, co-founder and senior partner of Generation Investment Management discusses how what he calls “sustainable capitalism” is the framework that shapes his investing strategy, what drives Generation’s investing culture, and how impact is becoming a key measurement in his investment analysis.
On his investment strategy: “We believe that long-term investing is best practice. Secondly, we believe that sustainability is a driver of current and future economies [and] should be incorporated in any analysis of industries or companies or economies broadly speaking. And that, thirdly, environmental and social governance factors, ESG factors, are helpful tools to help us understand what a company does and how a company does it.”
On the firm analyzing “impact”: “The question that we're getting increasingly from our clients is whether impact should be measured. And we think it should be. All investing has impact. And we are increasingly being asked to report on our impact. And so, as we think about the next five to 10 years as we're deploying capital into the transition to a net-zero economy—a just transition—I think we're going to need to consider exactly the types of businesses we're deploying capital into, exactly what these businesses are doing, and how they're impacting on this transition.