Sustainable Investing Is Not Enough: We Need Systems Change

Investing beyond the portfolio

Our client is a consulting and applied research firm based in New York that is a trailblazer in systems-level investing. Systems-level investing is an investment approach that goes beyond traditional ESG integration or portfolio diversification. Rather than treating risk as something that can be managed or diversified away at the asset level, systems-level investing emphasizes that portfolios are deeply influenced by systemic and systematic forces: climate change, biodiversity loss, financial instability, inequality. These are non-diversifiable risks that threaten not just individual firms, but the resilience of entire markets. Systems-level investing reframes the role of investors. They are not just stewards of portfolios but also stewards of the global systems on which those portfolios depend. To support this shift, our client company develops tools, frameworks, and a platform that catalogs investors’ practices and commitments in systems-level investing. By doing so, they aim to give institutional investors a clearer view of how peers are engaging in system stewardship and to accelerate adoption of these practices across the sector.

Our mission this semester

The firm has already laid a strong foundation for systems-level investing but has yet to fully develop a robust way to systematically assess, benchmark, and rank investors on their actual commitments and the outcomes of these commitments. This is where our team project for the semester comes in. Our task is to create a representative snapshot of the investor universe, defining archetypes and criteria that allow us to identify which investors merit inclusion in the assessment. Because the universe of institutional investors is vast, from pension funds to sovereign wealth funds, to insurers and more, our first step is scoping: agreeing on investor archetypes and ensuring that our selection captures the diversity of approaches in the market. Once the scoping is complete, we will work to refine a methodology for evaluation. This involves identifying what metrics best capture systems-level integration, balancing the client’s existing framework with fresh recommendations, and determining a ranking system. Something I’m particularly excited about in this project is that our methodology will not remain theoretical. Instead, we get the opportunity to test and validate it with a working group of practitioners and advisors from the industry. That means our work is not only hypothetical but also engaged with the real needs of investors who could potentially use the resulting benchmarks. Ultimately, once the methodology is refined, we will apply it to selected investors and produce a ranking that the client can continue to expand and update. For me, I see this project as a chance to bring my own background into the work. I have work experience on benchmarking exercises for banks for adherence to frameworks like the Task Force on Climate-related Financial Disclosures (TCFD). While that work focused on standards compliance rather than systems-level outcomes, I hope to help the team in ensuring that the approach we take to design the evaluation criteria and scoring systems are rigorous but also realistic for investors to adopt. What I hope to gain from this project is two-fold: first, building the skills and knowledge needed to understand and apply systems-level investing in practice, and second, strengthening my communication skills to be able to explain complex ideas in a clear and accessible way to different audiences.

Reflections and challenges

On a personal level, the start of the practicum has already been both energizing and reflective. From our very first internal meeting, I felt fortunate to be part of a team that connected quickly. Each member brings a different background and skillset, and together we complement one another well. That sense of momentum has only grown through our early interactions with the client. After two meetings, it is clear that they are not only thought leaders in their field but also collaborative partners, open to hearing our perspectives and genuinely interested in shaping the project with us. Their receptiveness has made the work feel like a shared process of exploration and problem-solving. My biggest challenge so far has been the open-ended nature of the project. Small decisions made early on about scope, investor archetypes, or methodology can steer the project in very different directions and produce very different outcomes. This level of discretion is daunting because it demands that we be deliberate, transparent, and collaborative in how we justify our choices. Additionally, I currently experience moments of imposter syndrome. I have limited prior experience in traditional investing, let alone systems-level investing, so it is easy to question whether I am contributing enough. I am trying not to let that discourage me, but to channel it into curiosity, persistence, and a stronger commitment to learning. It is very much a process, one that takes time and steady effort. In our weekly meditation sessions at the beginning of class, I found it difficult at first to stay present, so I set myself a simple goal of reaching three minutes of mental stillness without thinking by the end of the semester. That practice feels like a useful parallel to my journey on this project, both requiring patience, being intentional, and putting in consistent effort.

Looking ahead

After two weeks of research, I find myself with more questions than answers. Systems-level investing challenges the way we think about finance, and it is only natural that the deeper I go, the more complex the picture becomes. What counts as real systems stewardship? How should we compare investors with very different mandates or time horizons? What does success look like in practice? These questions are not easy to resolve, but they make the project all the more meaningful. This project is not just about producing a ranking, but also about wrestling with the hard issues at the frontier of sustainable finance. For me, that makes this work so energizing. I am learning to sit with the uncertainty, to collaborate with a strong team, and to accept that growth often comes from navigating the gray areas. This course is not only an opportunity to support a client’s transformative work. It is also a chance to challenge myself, sharpen my perspective, and grow through the process to ultimately carry these lessons forward into anything I take on next.