The Role of Institutional Investors in Clean Energy
The following post summarizes some key ideas from a recent edition of the CFA Institute podcast The Sustainability Story. CFA Institute’s Senior Director Matt Orsagh, CFA, CIPM, spoke with Mark Van Clieaf, Managing Director of FutureZero. In this podcast, Mr. Van Clieaf discusses the role of institutional investors in driving the transformation to clean energy.
The topic on the role of institutional investors starts at 26:21
Our economic development has been dependent on fossil fuels for the last past 150 years. And reversing it is not something that can be done in just a year or two. It is a tall order where in which institutional investors play a critical role.
According to Mark Van Clieaf, managing director of FutureZero, strategic engagement and impacting moving capital flows away from fossil fuel are crucial roles investors have to tackle. He explains, “It’s not just about security selection, it’s not just about portfolio management, there is an active role for the institutional investor community to play in one of the largest transformations in human history.”
Mr. Van Clieaf emphasizes how timelines are important. He noted also notes that board members, as well as institutional investors, are going to have to must keep up their antenna up for bona fide transition plans from company management. “The institutional investors are going to be looking for the head fakes,” he added.
Many companies are making intentional commitments to this thing called net zero. The question is, what’s backing it up? Mr. According to Van Clieaf says, “The proof will be in the pudding.”
The topic on the role of institutional investors starts at 26:21
Photo credit: Ian Forsyth/Getty Images
