This Project Is More Than Research

When I initially applied to be a part of the Sustainable Investing Research Consulting Project I saw it as an opportunity to learn about the different areas of work in the sustainable finance field. I did not expect to find myself leaning into a project which started as a research question and now has me engaging with advocacy, lobbying, and campaigning. 

The scope of our project was already well defined. We would be looking at the long term effects on the retirement system in Texas following the recent ESG Boycotting Laws. After our very first client meeting we quickly realized the huge impact this law is having on them, their community and the concern that the uncertainty is causing them. My colleagues and I came away from that video call inspired by our client's passion to protect the interests of those in their community, and how actively involved they were themselves in the advocacy and lobbying campaigns against the ESG Boycotting Law. My colleagues and I all share this passion with our client for promoting green and renewable energy, and found common ground in our mutual shock and dismay of how easily this law had been passed. This helped us connect with our client and has prepared us to work well together to provide insightful, relevant and powerful research.

Aside from the privilege of working on a project that I feel passionate about, my motivation was further spiked as a result of my shock when I understood the magnitude of the divestments that the law would cause. Our clients themselves have a fund managing over $180 billion dollars. Since the law has passed, this means that there are billions of dollars being divested from ESG labeled funds, in favor of protecting the oil industry in Texas. Our client also explained the very real risk of neighboring oil heavy states copying this model and adopting the law too. The significance of this monetary sum further sparked the sense of urgency for our team to find impactful evidence to uncover what the long term (potentially life changing) effects may be for the pensioners in Texas. 

At SIPA I have focused my studies on economic development, impact investing and the intersection between the two. Having a background in traditional asset management, specifically private client wealth management, I wanted to learn more about Environmental, Social and Governance (ESG) investing. Whilst studying, I have had the opportunity to work as a consultant for an impact venture capital firm that has invested $982,000 in the bioeconomy sector in the Amazonian region. This has exposed me to the “E” of ESG investing. I have also specialized my studies in financial inclusion and am currently consulting for a global nonprofit in this sector, researching barriers to accessing fintech faced by low income women owned nano and micro sized enterprises, allowing me to learn more about social impact, or “S” investing. By participating in the Sustainable Investing Research Consulting Project I am now also able to gain insight to the policy and legal side of sustainable finance, and I am hoping through this project to learn more about the governance “G” side of ESG investing. On top of allowing me to learn more about policy in sustainable finance and the long term effects of portfolio performance as a result of ESG investing, and in addition to working with a great SIPA team to provide valuable research to our client, I have also felt overwhelmed by the real world implications of our project. The topic we are addressing is much bigger than us as students and I am grateful to be able to provide even a small piece of research that could be used as a positive contribution to the advocacy of sustainable investing and the green energy transition. This project is more than research, it is a contribution to the legal framework for the future of ESG investing in America.