In their latest report, “The Future of Sustainability in Investment Management,” the CFA Institute provides recommendations on how to integrate sustainability concerns into investment practices. The report advises moving beyond traditional ESG practices to consider systems-level thinking, saying:
“Systems theory is more than just an extra discipline to be studied; it is as much a way of thinking and communicating that needs a cultural grounding. The key principle is that there are multiple interconnected factors that drive the investment ecosystem that need to be recognized. This…calls for balance — the balance to our thinking that does not seek to oversimplify complex elements.”
We applaud CFA for such a bold statement on systems thinking, and for encouraging its members to consider how systems theory can strengthen their investment practices.
Read the full report here.