New rules for financing transformative change
To tackle the tri-fold crises of climate change, biodiversity loss and inequality, we must embrace systems change and transform the way we invest. But how do we finance transformative change? The Deep Transitions Lab is on a mission to make this a reality. In November 2022, the Deep Transitions team alongside a cohort of 16 public and private investors from around the world published a Transformative Investment Philosophy. This proposed new principles, tools and metrics for financing long-term system change and a deep transition towards sustainability. Now Deep Transitions researchers have published the new paper “Transformative Investment: New Rules for Investing in Sustainability Transitions” by Caetano Penna, Johan Schot, and Ed Steinmueller, which critically analyses the current financial regime and its implications for sustainability transitions. The paper proposes a new set of rules grounded in socio-technical sustainability transition theory and the recent development of a theory of deep transitions. The aim? To guide transformative investments towards achieving both monetary and non-monetary value, such as societal and ecological resilience.