The Sustainable Capital Revolution

This book argues that a "sustainable capital" approach would account for all scarce resources used in any investment decision and adjust its risk-based pricing. It would redefine the foundations of modern finance and economics, supporting the funding required for green conversion and reduced wealth polarization.

Modern capitalism has focused on profit maximization at the expense of non-renewable natural resources. This has led to wealth polarization - that is, social unsustainability - and climate change - that is, environmental unsustainability. Value migration has occurred between the ultra-rich and the "remaining 99%" and across generations, with increased longevity and a demographic winter expected to contribute even more. All this has led us on a collision course with several existential threats.

This book explains that a quick and decisive sustainability conversion is necessary, requiring significant investment and careful management of trade-offs - such as those between environmental and financial risk. The author argues that a "sustainable capital" approach would account for all scarce resources used in any investment decision and adjust its risk-based pricing. It would redefine the foundations of modern finance and economics, overcoming the limits and negative implications of well-known metrics and supporting the funding required for green conversion and reduced wealth polarization. Ultimately, a "sustainable capital" approach could inform long-term sustainability transformation strategies and be used to develop a first set of pragmatic, market-based initiatives, involving non-bank funding and an operating partner approach, to accelerate a "wealth to wellbeing" and a "brown to green" transformation and the workout of the (otherwise stranded) socially and environmentally non-performing assets - securing the survival and evolution of our eco-system.

This book is aimed at those involved in the world of finance, investment management, and banking, with a specific focus on sustainable finance and green transformation. It will also be of relevance to readers interested in economic policies and the broader topic of equality, social sustainability, and wealth creation.

Autorentext

Claudio Scardovi is Equity Partner, Real Estate and Infrastructure Leader for Deloitte Central Mediterranean, and Chief Strategy Officer for Deloitte SR&TA. He is also Accademic Executive Fellow and Teaching Professor at Bocconi University and Turin University, Italy.

Klappentext

This book argues that a "sustainable capital" approach would account for all scarce resources used in any investment decision and adjust its risk-based pricing. It would redefine the foundations of modern finance and economics, supporting the funding required for green conversion and reduced wealth polarization.

Inhalt

1. Financial capital: a revenant revenge or its nemesis vengeance? 2. Sustainable revolution: a taller capital order 3. Equitization for growth and productivity 4. Real assets transformation and valorization 5. Sustainable capital: banking for the future