Financing a Sustainable Future

It’s Hot In Here

In the coming years, climate finance and sustainable investing will likely be some of the most transformed sectors in the world. David Blood, co-founder and Senior Partner of Generation Investment Management (GIM), joins the University of Michigan community to share his expertise and 30+ years of experience on the cutting edge of sustainable finance.

Chairman of Dialight, one of the co-chairs of The World Resources Institute, board member of several organizations, such as: On the Edge Conservation and The SHINE Group, David Blood has one of the most impressive resumés and investment portfolios in the world. In a talk given at the University of Michigan’s Ross School of Business, Blood outlined his past experiences within the investment sector and where he sees the field moving in the near future.

From education to child psychology to finance to leading the world in sustainable investing, David Blood came to the forefront of the investing world when he left an 18-year long career at Goldman-Sachs to join Al Gore in founding GIM. A mission driven institution, GIM has lead the charge on divestment, redefined best practices, and incorporated social justice and equity throughout their portfolio. They are now one of the most successful investment agencies in the world.

In the past, investing has revolved around two aspects: risk and return. Impact has traditionally been viewed as a side effect of the process, not a consideration. However, as Blood notes, “all investing has impact,” and whether that be positive or negative is the “fiduciary duty” of the investor. GIM has set the bar for incorporating impact into their mission.

“All investing has impact.”

– David Blood

Blood believes that sustainability and climate are current and future drivers of economies and that the shift towards a “green economy” will happen sooner than people think. Cautioning the public not to assume that what has happened in the past will also happen in the future, Blood predicts that the coming years will entail “the most significant economic shift in history.”

“It cannot be incremental, it must be transformational.”

– David Blood

Following Blood’s talk, a panel of experts convened to discuss sustainable finance and divestment within the state of Michigan. The panelists were:

• Moderator: Chad Spitler, Founder and CEO of Third Economy
• Liesl Clark, Director of the Michigan Department of Environment, Great Lakes and Energy (EGLE)
• Michael Dorsey, Co-founder of Sunrise Movement, Partner at IberSun Solar and a member of The Club of Rome
• Jennifer Haverkamp, Graham Family Director of the Graham Sustainability Institute

The panel discussed transitioning to a sustainable economy, the potential of a carbon tax, what a just transition would entail, and some obstacles that prevent sustainable investing. Using real data and their collective decades of expertise, the panel predicted what urgency in the economic sector will look like over the next few years. The evening concluded with a Q&A section.