The Greener Way

❓Question:

How can investing in First Nations women help close Australia's prosperity gap and create stronger communities, businesses and future leaders?

✅ Answer:

According to Rick Macourt, founder and managing director of First Nations Economics, First Nations women are often the backbone of their families, communities and local economies, making them critical drivers of long-term social and economic change.

Macourt says one of the biggest lessons has been the importance of trust. Through programs such as the Leah Armstrong Scholarship, recipients receive flexible support that allows them to decide what they need most to succeed, whether that's childcare, living expenses, technology or study costs. The approach shifts decision-making power to the women themselves rather than imposing rigid funding rules.

As Australia undergoes a major economic transformation through the clean energy transition, Macourt believes First Nations women are well positioned to play a greater role in shaping sustainable businesses, community development and future investment opportunities. He argues that empowering women today helps build stronger families, communities and intergenerational prosperity tomorrow.

Key insights:

🌟 First Nations women are often key decision-makers within families and communities.

🌟 Ngarimili was designed to support women throughout multiple stages of life and career development.

🌟 Flexible scholarship funding gives recipients greater control over their own success.

🌟 Financial literacy and entrepreneurship are powerful tools for economic empowerment.

🌟 Investing in women can create benefits that extend across entire communities.

🌟 The renewable energy transition could create new opportunities for First Nations women leaders and entrepreneurs.

🚩 Risks:

🚩 Structural barriers continue to limit educational and economic opportunities.

🚩 Short-term funding models can restrict long-term impact.

🚩 Overly prescriptive scholarship programs may fail to meet recipients' real needs.

🚩 Economic gaps can persist across generations without targeted support.

🚩 Major economic transitions may overlook First Nations voices and leadership.

⚠️ Things to watch:

⚠️ Growing demand for programs designed specifically for First Nations women.

⚠️ New approaches to financial wellbeing and economic self-determination.

⚠️ Increasing focus on entrepreneurship and leadership development.

⚠️ Emerging opportunities linked to the clean energy transition.

⚠️ Greater recognition of First Nations women as drivers of community prosperity.

💡 Why it matters:

Closing the First Nations prosperity gap requires more than policy change. It requires investment in the people already creating change within their communities. By supporting First Nations women through education, financial empowerment and leadership opportunities, organisations can help create lasting economic benefits that flow across generations.

🎙️ Sources:

Rick Macourt – founder and managing director, First Nations Economics

Michelle Baltazar – Host, The Greener Way

⏱️ Timestamps:

00:31 – Why empowering First Nations women matters

01:39 – Understanding the prosperity gap

03:25 – The story behind First Nations Economics

04:38 – Why women are central to community prosperity

05:13 – Introducing the Ngarimili ecosystem

06:25 – Supporting entrepreneurship and leadership

07:43 – Lessons from scholarship recipients

08:13 – Why trust matters more than red tape

09:04 – Rethinking how scholarships are delivered

10:35 – Financial literacy and economic empowerment

11:31 – Building intergenerational wealth

12:28 – Lessons from Indigenous economic models overseas

13:02 – Opportunities in the clean energy transition

13:34 – Sustainability through a First Nations lens

15:23 – Creating ownership, not dependency

16:00 – Building prosperity for future generations

🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present.

🌳 Should banks stop financing deforestation in Australia?

❓ Question:

What role do Australian banks play in deforestation, and how can financial institutions better manage nature-related risks within their lending portfolios?

✅ Answer:

According to Max Hamra, corporate accountability analyst at the Australian Conservation Foundation (ACF), Australia's major banks are linked to significant deforestation activity through agricultural lending, highlighting the growing importance of nature-related financial risks. ACF's latest investigation identified more than 16,000 hectares of deforestation linked to properties financed by major lenders, with impacts including the loss of high-carbon forests and critical habitat for endangered species such as koalas and greater gliders.

Hamra argues that banks should increasingly treat deforestation as a core risk management issue rather than solely a sustainability concern. He believes nature-related risks should be embedded within credit and lending processes, with leadership from boards, executives and risk teams helping drive action across institutions.

Rather than demanding immediate deforestation-free commitments, ACF advocates a more practical approach. It wants banks to first build the data, systems and stakeholder engagement needed to understand the issue, establish clear pathways for improvement, and then introduce commitments that are achievable and measurable. Hamra says the goal is to align banking practices with Australia's broader environmental objectives, including global commitments to halt nature loss and deforestation by 2030.

Key insights:

🌟 More than 16,000 hectares of deforestation were identified in the latest ACF investigation The report linked a significant number of deforestation cases to land with bank-financed mortgages, highlighting the scale of nature-related risks within agricultural lending portfolios.

🌟 All major Australian banks were linked to investigated cases

🌟 Nature risk is becoming a mainstream financial issue

🌟 Investor engagement is accelerating

🌟 Some Australian banks are beginning to develop frameworks

🌟 Strong leadership is critical

🚩 Risks:

🚩 Deforestation creates significant emissions

🚩 Biodiversity loss threatens ecosystems

🚩 Agricultural productivity may suffer over time

🚩 Banks face growing reputational and financial risk

🚩 Progress across the sector remains uneven

⚠️ Things to watch:

⚠️ Deforestation-free commitments require substantial preparation Banks need better data, systems and stakeholder engagement before they can confidently implement and monitor meaningful commitments.

⚠️ Most deforestation identified was linked to agricultural expansion The report found that approximately 99% of investigated clearing related to expanding agricultural activity rather than residential development.

⚠️ Global expectations are rising quickly International banks are increasingly making nature-related and deforestation-related commitments, potentially creating pressure on Australian institutions to follow.

⚠️ Nature loss is moving up the ESG agenda After years of focus on climate emissions, biodiversity and natural capital issues are emerging as major priorities for investors and financial institutions.

💡 Why it matters:

As global commitments to halt nature loss by 2030 approach, financial institutions will face increasing pressure to understand how lending decisions impact ecosystems, biodiversity and long-term economic resilience. The debate is no longer whether nature matters to finance, but how quickly institutions can integrate it into decision-making.

🎙️ Sources:

Max Hamra – corporate accountability analyst, Australian Conservation Foundation

Michelle Baltazar – Host, The Greener Way

⏱️ Timestamps:

00:00 – Why ACF is focusing on banks and deforestation

01:05 – How the investigation was conducted

02:36 – Key findings from the latest report

04:13 – Emissions impact of deforestation

05:29 – What ACF wants banks to do next

07:07 – Why nature risk is rising up the agenda

07:43 – The role of banks' risk teams

09:36 – How Australian banks compare globally

11:50 – Are local banks falling behind?

12:00 – Investor engagement and shareholder pressure

4:22 – Housing, agriculture and land clearing debate

15:57 – Soil health and ecosystem degradation

16:43 – Common misconceptions about ACF's proposals

17:36 – Why commitments should follow preparation

18:16 – Balancing ambition with practical action

🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present.

🌏 Is climate tech the next big investment opportunity in Asia-Pacific?

❓ Question:

Why are investors increasingly looking at climate technology, and what should Australian investors consider when assessing climate tech opportunities across Asia-Pacific?

✅ Answer:

According to Ayush Kapila, co-founder and operating partner of Vitality Capital Partners, climate technology is becoming a major investment theme because many of the technologies needed to achieve net zero have not yet been fully developed or commercialised. He argues that around 30% to 40% of the technologies required for net zero remain in the prototype stage, creating significant opportunities for investors willing to back innovation.

Kapila believes the greatest opportunity sits in Asia-Pacific, which accounts for more than half of global emissions and a large share of future energy demand growth. Rather than viewing climate tech as a niche sustainability investment, he sees it as a broad opportunity to support commercially viable businesses solving everyday problems across energy, transport, food systems, agriculture, water, industry and the circular economy. For investors, success depends not only on the environmental benefits of a technology, but whether it can deliver efficiency gains, competitive costs and strong commercial returns.

🌟 Asia-Pacific is one of the world's largest climate tech opportunities

More than half of global emissions originate from the Asia-Pacific region, creating a significant need for technologies that can support decarbonisation while meeting growing energy and infrastructure demand.

🌟 Many net-zero technologies are still being developed

Kapila estimates that 30% to 40% of the technologies needed to achieve global net-zero targets remain in the prototype or development stage, creating opportunities for venture capital and private market investors.

🌟 Climate tech extends far beyond renewable energy

The sector includes innovations across sustainable aviation fuel, water treatment, food systems, transport, industrial efficiency, circular economy solutions, agriculture and blue economy technologies.

🌟 Cost competitiveness is critical for success

Technologies that reduce costs and improve efficiency are more likely to gain widespread adoption than those requiring customers to pay a "green premium."

🌟 Australia's climate tech ecosystem is growing rapidly

Vitality Capital Partners identified approximately 690 climate tech companies headquartered in Australia, with a median founding year of 2021, highlighting the sector's strong recent growth.

🌟 Commercial returns remain the priority

Kapila argues that climate tech investing does not require sacrificing returns and should be viewed as a commercial growth opportunity rather than solely an impact investment.

🌟 Strong founders often emerge from established industries

Many successful climate tech founders have backgrounds in banking, funds management, large corporates and institutional organisations, bringing industry expertise to emerging challenges.

🌟 New capital structures are emerging

Initiatives involving institutional investors, government-backed organisations and structured finance are helping bridge funding gaps for climate-related businesses.

🚩 Early-stage investing remains high risk

Many climate technologies are still relatively young businesses and face significant execution, commercialisation and scaling challenges.

🚩 Fund size mismatches can limit institutional participation

Many climate venture funds are smaller than the typical allocation size required by large superannuation funds, making it difficult for institutions to deploy meaningful amounts of capital.

🚩 Liquidity remains a challenge

Venture capital investments often take longer to realise returns, creating potential conflicts with institutional investors' liquidity requirements.

🚩 First-of-a-kind projects carry significant execution risk

Capital-intensive projects and emerging technologies require experienced managers and operators to successfully scale businesses.

🚩 Market conditions remain difficult

Fundraising for early-stage ventures has become more challenging in recent years, creating additional pressure on managers and founders.

⚠️ Not every climate solution becomes a successful investment

Strong environmental credentials alone do not guarantee commercial success. Investors must assess revenue opportunities, scalability and market demand.

⚠️ Technology development timelines remain uncertain

Many solutions essential to future decarbonisation pathways have yet to reach commercial maturity.

⚠️ Investor expectations may not align with venture timelines

Climate technology investments often require longer holding periods before achieving exits or generating returns.

⚠️ Public perceptions can create barriers

Terms such as "climate", "impact" and "sustainability" can attract political or ideological debate despite underlying commercial opportunities.

💡 Why it matters:

Climate technology is emerging as one of the most significant investment themes of the net-zero transition. As governments, companies and consumers seek solutions to reduce emissions while maintaining economic growth, investors are increasingly looking at businesses that can deliver both sustainability outcomes and commercial returns. For Australian investors, the rapid expansion of climate tech across Asia-Pacific presents opportunities to access innovation in sectors ranging from energy and transport to food, water and industrial efficiency. However, the sector's early-stage nature means careful manager selection, diversification and risk assessment remain critical.

🎙️ Sources:

Ayush Kapila, co-founder and operating partner, Vitality Capital Partners

Michelle Baltazar, host, The Greener Way

⏱️ Timestamps:

00:00 – Why climate tech matters for net zero

01:12 – The origins of Vitality Capital Partners

02:00 – Climate tech companies in the portfolio

03:00 – Climate tech's role in an investment portfolio

04:03 – Why emerging technologies matter

05:00 – Australia's 690 climate tech companies

06:09 – Assessing climate tech investment opportunities

07:20 – Commercial demand, regulation and execution risk

07:33 – Who builds successful climate tech businesses?

08:37 – Why more superannuation money isn't flowing into climate tech

09:27 – Fund size and capital allocation challenges

10:34 – Liquidity and exit challenges

11:05 – Emerging investment solutions and structures

12:16 – The biggest misconceptions about climate tech

13:04 – Climate tech as a commercial investment opportunity

13:44 – The future of Vitality Capital Partners

🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present.

⚕️ Can hospitals cut emissions by 44%? The surprising case for reusing "single-use" medical devices

❓ Question:

How can remanufacturing single-use medical devices help reduce healthcare waste, improve supply chain resilience and lower emissions without compromising patient safety?

✅ Answer:

According to Daniel Vukelich, president of the Association of Medical Device Reprocessors (AMDR), healthcare's reliance on single-use medical devices has created significant waste, emissions and supply chain vulnerabilities. While many devices are labelled for single use, remanufacturing companies can clean, validate, test and sterilise eligible products so they can be safely used again.

Vukelich argues that remanufacturing offers a practical circular economy solution that reduces costs, cuts healthcare emissions, improves supply chain resilience and recovers valuable materials that would otherwise be discarded. With healthcare accounting for around 5% of global emissions and increasing pressure on global supply chains following COVID-19 and geopolitical disruptions, he believes circular healthcare models will become increasingly important for hospitals, policymakers and investors.

🌟 Healthcare is a major contributor to global emissions

If healthcare were a country, it would rank among the world's largest emitters. Healthcare-related activities account for approximately 5% of global emissions, making decarbonisation a growing priority for the sector.

🌟 Circular healthcare can reduce dependence on fragile supply chains

COVID-19 exposed vulnerabilities in global medical supply chains. Remanufacturing enables hospitals to extend the life of existing devices and reduces dependence on imported products and raw materials.

🌟 Valuable materials can be recovered and reused

Many medical devices contain microchips, rare earth metals, gold and other valuable materials. Remanufacturing helps recover these resources rather than sending them to landfill or incineration.

🌟 Hospitals can significantly reduce procurement costs

The remanufacturing industry has delivered substantial savings to healthcare systems by allowing eligible devices to be safely reused rather than constantly replaced with new products.

🌟 Emissions can be reduced by remanufacturing devices closer to home

Lifecycle assessments suggest remanufacturing can reduce emissions by around 44% compared with manufacturing entirely new devices because fewer raw materials need to be extracted, processed and transported.

🌟 Scope 3 emissions present a major opportunity

Around 70% of hospital emissions originate from supply chains rather than hospital operations. Addressing procurement and medical device lifecycles could have a larger impact than operational changes alone.

🌟 Australia is moving closer to developing a remanufacturing sector

Several companies have announced plans to invest in Australian remanufacturing capability, while regulators continue to assess the appropriate framework for medical device reuse and remanufacturing.

🌟 Circular business models could become a competitive advantage

Vukelich believes medical technology companies that extend product lifecycles and offer circular solutions are likely to be better positioned as healthcare systems focus more on sustainability and resilience.

🚩 Regulatory frameworks are still evolving

Australia is still developing the regulatory settings required to support a larger remanufacturing industry while maintaining patient safety and clinical confidence.

🚩 Existing healthcare procurement models favour single-use products

Many purchasing decisions remain focused on upfront unit costs rather than whole-of-life costs, supply chain security and environmental impacts.

🚩 Established business models may resist change

Manufacturers that rely on selling new devices may be reluctant to adopt circular approaches that extend product lifespans and reduce replacement rates.

🚩 Clinical participation is critical

Remanufacturing programs depend on hospitals consistently collecting and separating eligible devices for reuse. Without clinician engagement, significant benefits can be lost.

⚠️ Healthcare's environmental footprint is larger than many realise

Despite healthcare's mission to improve health outcomes, the sector remains a significant source of waste and carbon emissions.

⚠️ Supply chain disruptions are becoming a strategic risk

Pandemics, trade tensions, tariffs and geopolitical conflicts continue to create uncertainty in healthcare supply chains, increasing costs and reducing resilience.

⚠️ Sustainability alone will not drive change

Vukelich argues that adoption must be supported by strong business and financial cases, not environmental benefits alone.

⚠️ Procurement practices may determine the pace of adoption

Unless healthcare buyers actively reward sustainable and circular solutions, progress towards circular healthcare models may remain slow.

💡 Why it matters:

Healthcare is increasingly being viewed through both a sustainability and supply chain lens. As hospitals seek to reduce costs, improve resilience and cut emissions, circular approaches such as medical device remanufacturing are attracting greater attention globally. For investors, healthcare providers and policymakers, the transition from a linear "take-make-waste" model to a circular healthcare system could create new commercial opportunities while helping address waste, carbon emissions and resource constraints.

🎙️ Sources:

Daniel Vukelich, president, Association of Medical Device Reprocessors (AMDR)

Michelle Baltazar, host, The Greener Way

⏱️ Timestamps:

00:00 – Why healthcare emissions matter

01:25 – What circular healthcare means

01:49 – The rise of single-use medical devices

02:35 – What remanufacturing and reprocessing involve

03:34 – Common misconceptions about reuse and recycling

04:15 – How COVID changed the conversation

05:00 – Types of devices that can be remanufactured

06:12 – Cost savings and supply chain resilience

07:33 – Australia's emerging remanufacturing opportunity

08:40 – The emissions benefits of remanufacturing

09:37 – Healthcare's carbon footprint and Scope 3 emissions

10:26 – Barriers and industry resistance

11:49 – Regulation, procurement and policy priorities

12:49 – The future of circular healthcare

13:36 – Potential benefits for developing countries

14:09 – Sustainability, business and healthcare waste reduction

🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present.

🌿 Australia's climate capital challenge: Why investors want to spend billions but can't find enough opportunities

❓ Question:

Why are Australia's largest investors struggling to deploy more climate capital locally, and what needs to change to attract the investment required for the country's net-zero transition?

✅ Answer:

According to Rebecca Mikula-Wright, chief executive of the Investor Group on Climate Change (IGCC), institutional investors remain highly committed to climate-related investing despite geopolitical uncertainty, energy security concerns and market volatility. Australia's superannuation funds and institutional investors increasingly view climate change as both a financial risk and a major investment opportunity.

However, while investor appetite for climate solutions continues to grow, there remains a shortage of investable opportunities that meet required risk and return thresholds. Mikula-Wright argues the challenge is not a lack of capital but a lack of policy certainty, project readiness and market signals that allow large-scale investment to flow efficiently. With Australia's super funds managing approximately $4.5 trillion and the nation requiring up to $630 billion of investment to meet its 2035 climate targets, she says getting policy settings right will determine whether that capital stays in Australia or moves elsewhere.

🌟 Clean energy remains the dominant climate investment theme

Renewable energy generation, transmission infrastructure and energy storage continue to attract the strongest investor interest. These sectors are viewed as critical to both emissions reduction and future energy security.

🌟 Climate adaptation is emerging as a major opportunity

Investors are increasingly moving beyond mitigation and emissions reduction to focus on adaptation and resilience. Around a third of investors now view climate adaptation as an investment opportunity rather than simply a risk that must be managed.

🌟 Asia is becoming more attractive for climate capital

Investor interest in climate opportunities across Asia is growing rapidly. As Australia competes for global capital, investors are increasingly evaluating overseas markets that offer stronger policy certainty and larger investment pipelines.

🌟 Energy security is reshaping investment decisions

Geopolitical tensions and concerns about energy supply are reinforcing support for electrification, renewable infrastructure and low-carbon fuels. Climate investment is increasingly being viewed through a national security lens.

🌟 Climate risks are being integrated into mainstream portfolios

Rather than limiting sustainability considerations to dedicated ethical funds, investors are increasingly embedding climate risks and opportunities across their entire portfolios and investment processes.

🌟 Climate adaptation finance could become a significant new asset class

Historically, governments have funded adaptation projects. As private investment markets mature, opportunities are emerging in infrastructure, resilience solutions and technologies designed to address physical climate risks.

🌟 Stewardship remains a key tool for investors

Shareholder engagement, voting and corporate stewardship continue to play an important role in influencing company behaviour. However, investors increasingly recognise that broader policy and market reforms are needed to drive system-wide change.

🌟 Mandatory climate reporting could improve investment decisions

As climate disclosure frameworks develop, investors expect to gain better visibility into how companies identify, manage and prepare for climate-related risks and opportunities.

🚩 A shortage of investment-ready projects remains a major barrier

Many investors say they want to allocate more capital but cannot find enough climate-aligned investments with suitable risk-return characteristics. This remains one of the biggest obstacles to scaling climate finance.

🚩 Policy uncertainty continues to slow capital deployment

Investors remain concerned about whether climate and energy policies will remain consistent across political cycles. Without long-term certainty, capital can remain on the sidelines or move overseas.

🚩 Slow approvals and regulatory bottlenecks are creating delays

Project approval processes, tax uncertainties and outdated regulatory frameworks are slowing the development of climate-related infrastructure and reducing the number of investable opportunities.

🚩 Australia faces growing competition for global capital

Investors have choices about where to deploy funds. If Australia cannot create an attractive investment environment, climate capital may increasingly flow to other regions.

⚠️ Capital availability does not guarantee investment

Mikula-Wright stresses that having trillions of dollars available for investment does not automatically mean that funds will be deployed. Effective policy design and implementation remain critical.

⚠️ Weak demand signals can undermine climate investment

Current market incentives are not always strong enough to stimulate demand for climate solutions, making it harder for projects to achieve commercial viability.

⚠️ Delays to the energy transition could impact long-term competitiveness

Failure to accelerate decarbonisation, clean energy deployment and climate adaptation may weaken Australia's ability to compete for future investment and trade opportunities.

💡 Why it matters:

Climate investing is moving from a niche sustainability strategy to a mainstream capital allocation issue. Australia's largest institutional investors are signalling that significant amounts of money are available for clean energy, climate adaptation and decarbonisation projects, but that capital needs investment-ready opportunities and stable policy settings. As Australia works toward its 2035 climate goals, the ability to attract and deploy climate capital may play a crucial role in determining the country's economic competitiveness, energy security and long-term prosperity.

🎙️ Sources:

Rebecca Mikula-Wright, chief executive, Investor Group on Climate Change (IGCC)

Riddhima Talwani, host, The Greener Way

⏱️ Timestamps:

00:00 – Why Australia needs climate investment capital

01:03 – Where climate sits among investor priorities

02:38 – Major climate investment themes driving capital

03:13 – Growth in clean energy and adaptation investing

04:04 – Why investors are looking increasingly towards Asia

05:00 – The gap between investor appetite and available opportunities

06:02 – Policy certainty and barriers to capital deployment

07:13 – How investors are engaging with policymakers

08:16 – The shift from ethical funds to portfolio-wide ESG integration

10:02 – Stewardship, shareholder voting and climate engagement

11:42 – What investors want from mandatory climate reporting

13:10 – IGCC's policy priorities and climate agenda

14:03 – National adaptation planning and climate finance

15:08 – Clean energy, low-carbon fuels and industrial decarbonisation

16:00 – Australia's role in supporting Asia's transition

16:35 – Why policy settings will determine where capital flows

17:08 – IGCC Summit and final remarks

FS Sustainability is a media partner of the IGCC Summit 2026 to be held on the 24-25 November at Ilumina Sydney. To register, click here.

🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present.

🔥 Ethinvest: A call to make impact investing accessible for everyday Australians

❓ Question:

Impact investing has matured significantly over the past decade, but many of the most attractive opportunities remain out of reach for everyday investors. What is changing in the impact investing landscape, and how can investors use both their capital and their shareholder influence to create positive environmental and social outcomes?

✅ Answer:

According to Trevor Thomas, managing director of Ethinvest, impact investing is evolving from a niche market into an increasingly sophisticated asset class that is attracting institutional-grade fund managers and larger pools of capital. While impact investing has traditionally been dominated by wholesale investors, efforts are underway to make high-quality impact opportunities more accessible to retail investors.

Thomas explains that true impact investing differs from simply buying shares in companies with positive environmental or social credentials. Impact investments are intentionally designed to address a specific problem, measure the outcomes achieved and provide capital directly to projects that generate positive change. This can include renewable energy, affordable housing, environmental restoration and social impact initiatives.

Alongside capital allocation, Thomas argues investors should not underestimate the power of shareholder engagement. Over the past decade, shareholder activism and engagement campaigns have helped drive change across issues including climate disclosure, gambling, plastic waste, deforestation and biodiversity protection. Investors increasingly have two powerful tools available: where they invest their money and how they use their voice as shareholders.

🌟 Impact investing is becoming more institutional and mainstream

The first generation of impact investments was often innovative but relatively small in scale. Today, institutional fund managers are launching larger, more diversified impact funds with the potential to deliver market-like returns while creating measurable environmental and social outcomes.

🌟 True impact investing goes beyond buying ethical shares

Thomas distinguishes impact investing from traditional share investing. When investors purchase listed shares, the money typically goes to another shareholder. Impact investments, by contrast, direct capital towards creating new projects, assets and solutions that address social or environmental challenges.

🌟 Renewable energy and environmental infrastructure remain major themes

Some of the most prominent opportunities today include renewable energy infrastructure, battery storage, environmental water projects and decarbonisation initiatives. These investments are attracting increasing interest as governments, institutions and investors seek practical solutions to sustainability challenges.

🌟 Democratising impact investing remains a key goal

One of the biggest challenges facing the sector is accessibility. Many of the highest-quality impact funds remain restricted to wholesale investors. Thomas says efforts are underway to create investment vehicles that combine leading impact funds into structures that retail investors can access more easily.

🌟 Superannuation funds could play a larger role

Large super funds are increasingly allocating capital towards impact investments and are becoming more active participants in addressing challenges such as climate transition, clean technology development and affordable housing at scale.

🌟 Shareholder activism can drive meaningful change

Investor engagement has played a significant role in influencing corporate behaviour. Thomas highlights campaigns involving climate change, banking policies, biodiversity protection, plastic reduction and gambling exposure, demonstrating that investors can create change even when shareholder resolutions do not ultimately succeed.

🌟 Success is not always measured by winning the vote

Some engagement campaigns fail to achieve immediate outcomes but still generate important progress. Thomas points to climate-related shareholder advocacy that led companies to improve transparency and disclose previously unavailable information, helping investors better understand risks and corporate strategies.

🚩 Retail investors still face access barriers

Many impact investments involve long investment horizons of seven to ten years. These illiquid structures can be difficult for retail investors to access, creating a gap between investor demand and available products.

🚩 Patience is often required

Unlike publicly traded shares, many impact investments require investors to commit capital for extended periods before outcomes and returns are realised. This remains one of the sector's biggest structural challenges.

⚠️ Not every impact investment succeeds

While many impact investments have generated positive outcomes and competitive returns, others have faced challenges. Some projects were disrupted by external events such as COVID-19, highlighting the importance of diversification and careful manager selection.

⚠️ Impact measurement remains critical

As the sector grows, investors need confidence that managers are measuring and reporting outcomes consistently. Intentionality, measurable impact and additionality remain key characteristics that distinguish genuine impact investments from broader sustainability strategies.

🌟 Investors no longer need to sacrifice returns

Thomas believes one of the industry's biggest misconceptions is that ethical and impact investing inevitably leads to weaker financial performance. In most asset classes, investors can now access strategies that seek both commercial returns and measurable impact outcomes.

💡 Why it matters:

Impact investing is moving beyond its early experimental phase and becoming a more established part of the investment landscape. As institutional managers bring larger, more sophisticated products to market, access is gradually expanding and the opportunity set is widening. At the same time, investors are increasingly recognising that creating impact is not just about where money is invested, but also how shareholder rights are exercised. Understanding both capital allocation and engagement strategies may become increasingly important as investors seek to balance financial outcomes with positive environmental and social change.

🎙️ Sources:

Trevor Thomas, managing director, Ethinvest

Michelle Baltazar, host, The Greener Way

⏱️ Timestamps:

00:00 – Why impact investing needs to be democratised

00:17 – The evolution of impact investing

01:33 – What makes an investment a true impact investment

03:02 – Standout impact funds and recent opportunities

04:02 – The challenge of retail investor access

05:00 – Wholesale versus retail impact investing

06:38 – The role of super funds in driving impact

07:23 – Shareholder activism and investor influence

08:41 – Using shareholder resolutions to create change

10:07 – Lessons from climate engagement campaigns

11:00 – Biodiversity and salmon farming advocacy

11:49 – Impact investment performance and outcomes

12:37 – Why scale matters in impact investing

13:29 – The myth that impact investing underperforms

14:08 – Final thoughts and key takeaways

🌿 We record on Gadigal Land and pay our respects to the traditional custodians of country and elders past and present.

☀️ Super El Niño, AI and water scarcity: The investment trends that could reshape the ASX

❓ Question:

How could a potential Super El Niño, rising temperatures and the rapid expansion of AI data centres create new investment opportunities and risks for investors over the coming decade?

✅ Answer:

According to Claudia Kwan, managing partner and portfolio manager at North Star, investors are entering an unprecedented period where climate change, extreme weather patterns and AI-driven infrastructure demand are colliding. A potential Super El Niño could affect water availability, energy demand, supply chains, commodity prices and capital allocation decisions across the economy. Kwan believes investors who understand these interconnected trends will be better positioned to identify the next generation of winners, while those relying solely on traditional investment metrics may miss significant opportunities.

🌟 Investors are facing a climate event without historical precedent

While Super El Niño events have occurred before, Kwan notes that they have never occurred alongside today's backdrop of rising global temperatures and accelerating climate change. This makes forecasting more difficult and increases uncertainty for investors.

🌟 AI data centres are becoming a major economic force

The surge in AI adoption is driving unprecedented demand for data centres, placing increasing pressure on energy systems, infrastructure and water resources. This is creating new investment themes that extend well beyond the technology sector.

🌟 Water may become one of the most valuable investment themes

Kwan argues that water remains overlooked compared with energy and electrification. Changing rainfall patterns, droughts and flooding could create both risks and opportunities across industries, making water-related infrastructure and solutions increasingly important.

🌟 Supply chain disruptions are becoming more frequent

Extreme weather events such as cyclones are already affecting manufacturing and logistics networks. Investors can no longer view climate disruptions as isolated events because their impacts are spreading across global supply chains.

🌟 Climate adaptation is creating new commercial opportunities

As businesses adapt to changing environmental conditions, demand is increasing for technologies and services that improve efficiency, resilience and resource management. Companies providing these solutions may benefit from long-term structural growth.

🌟 Rising commodity prices are helping circular economy businesses

Higher resource prices are improving the economics of recycling, reprocessing and waste recovery. Activities that were previously uneconomic are becoming commercially viable as demand for critical materials increases.

🌟 Investors may need to rethink how they value growth companies

Traditional measures such as earnings, free cash flow and balance sheet strength remain important, but Kwan believes investors should also evaluate market size, adoption potential and unit economics when analysing emerging industries.

🌟 The next decade could create entirely new market leaders

Kwan expects many future ASX success stories to come from sectors linked to electrification, climate adaptation, digital infrastructure and resource efficiency. She believes the composition of the ASX 200 could look very different by 2035.

🚩 Funding the transition remains a major challenge

The enormous investment required for energy infrastructure, data centres and climate adaptation will require substantial capital. Investors need to pay close attention to funding sources and the cost of capital.

🚩 Volatility is likely to increase

More extreme weather events and shifting climate patterns may result in greater uncertainty across financial markets, creating both opportunities and downside risks.

🚩 Climate risks now affect almost every sector

From supply chains and insurance costs to resource availability and consumer spending, climate-related impacts are becoming embedded across the broader economy rather than affecting individual industries.

⚠️ Black swan events may become more common

Kwan warns that investors should prepare for unexpected climate-related and capital-market shocks. Events previously considered rare could occur more frequently in a world shaped by climate change and rapid technological transformation.

⚠️ Investors who ignore emerging data could fall behind

As climate, weather and infrastructure data become increasingly important drivers of performance, investors who fail to monitor these developments risk mispricing opportunities and threats.

💡 Why it matters:

Climate change is no longer simply an environmental issue. It is becoming a powerful investment driver that influences energy demand, water resources, supply chains, capital flows and market valuations. Kwan's research suggests that understanding the interaction between Super El Niño, AI infrastructure growth and climate adaptation could help investors identify future winners while better managing long-term portfolio risks.

🎙️ Sources:

Claudia Kwan, managing partner and portfolio manager, North Star

Michelle Baltazar, host, The Greener Way

⏱️ Timestamps:

00:00 – How Super El Niño could reshape investment markets

00:45 – Introducing North Star and impact investing

01:44 – What defines a Super El Niño?

02:34 – Why investors should pay attention now

04:04 – Climate adaptation and investment opportunities

05:05 – Why water is an overlooked investment theme

05:45 – AI infrastructure and supply chain impacts

06:46 – Commodity prices and circular economy opportunities

07:26 – Rethinking traditional investment metrics

08:55 – Evaluating growth opportunities in emerging industries

09:52 – M&A activity and industry consolidation

11:40 – Claudia's prediction for the ASX in 2035

12:04 – Funding challenges and key investment risks

13:37 – Black swan risks and increasing volatility

14:55 – Final investor takeaways

🌿 We record on Gadigal Land and pay our respects to the traditional custodians of Country and elders past and present.

https://www.fssustainability.com.au/

🌿 Why investors may be overlooking one of the biggest risks in their portfolios

❓ Question:

If the ocean underpins climate stability, food security, global trade and biodiversity, why has it remained largely absent from investment frameworks, and how can investors better account for ocean-related risks and opportunities in their portfolios?

✅ Answer:

According to Sudip Hazra, director of the First Sentier MUFG Sustainable Investment Institute, the ocean is the world's largest natural asset class but remains one of the least understood by investors. Many investors already have significant exposure to ocean-related risks because industries across food production, tourism, shipping, infrastructure and consumer goods depend on healthy marine ecosystems. Hazra argues that oceans should be viewed as critical economic infrastructure rather than an environmental externality. By better understanding these dependencies, investors can improve risk management, identify new opportunities and support the transition to a more sustainable blue economy.

🌟 The ocean underpins far more of the economy than many investors realise

Hazra explains that ocean health influences a wide range of industries, even those not traditionally associated with marine assets. Every diversified investment portfolio is likely to contain companies that depend on oceans, waterways and marine ecosystems. Rather than sitting outside portfolios as an environmental concern, ocean-related risks and opportunities are already embedded within many existing investments.

🌟 Natural marine assets deliver significant economic value

The report highlights the Great Barrier Reef as an example of a natural asset that generates substantial economic activity. Beyond tourism, marine ecosystems such as coral reefs, mangroves and seagrass meadows provide coastal protection, support fisheries, store carbon and help sustain local economies. Hazra argues these assets should be recognised as economic infrastructure rather than simply environmental features.

🌟 Ocean exposure exists across unexpected sectors

Investors often assume ocean-related risks are confined to fisheries or shipping. However, Hazra points to examples such as pet food manufacturers whose supply chains depend on healthy marine biodiversity. As a result, companies in seemingly unrelated sectors are increasingly recognising the business value of maintaining healthy ocean ecosystems.

🌟 Better frameworks can improve investment decision-making

To help investors identify and manage ocean-related risks, the institute developed the Ocean Framework report. The framework is designed to help investors assess dependencies, evaluate risks, engage with portfolio companies and allocate capital more effectively. It includes engagement questions and sector-specific guidance for industries with significant ocean exposure.

🌟 Super funds can help close the blue finance funding gap

Hazra believes Australian super funds have an important role to play in accelerating investment into ocean-related solutions. This includes supporting investment-ready projects, improving data quality and engaging with companies on practical sustainability issues that affect marine ecosystems. Effective engagement can also influence policy outcomes and drive behavioural change across industries.

🌟 Ocean investing is closely linked to climate, biodiversity and food security

Rather than being a standalone sustainability theme, ocean health supports several of the most important long-term investment trends. Hazra argues that investors focused on climate resilience, biodiversity protection, food security and long-term value creation should also consider ocean-related risks because these challenges are deeply interconnected.

🚩 A lack of data continues to limit investment

One of the biggest barriers to ocean investing is the absence of consistent data and widely adopted frameworks. Investors often struggle to quantify ocean-related risks, resulting in underpricing of environmental impacts and underinvestment in solutions. Closing these data gaps is essential to improving capital allocation.

🚩 Governance remains fragmented

Unlike climate reporting, ocean-related regulation and disclosure frameworks remain relatively immature. Hundreds of overlapping policies and varying levels of enforcement can create uncertainty for investors seeking clarity around risks, standards and accountability.

⚠️ Ocean-related risks may emerge sooner than investors expect

Hazra cautions that ocean-related issues should not be viewed solely as long-term concerns. Marine pollution, biodiversity loss and water contamination can create immediate financial, operational and reputational risks for companies. These risks may affect supply chains, product availability and business profitability far sooner than many investors anticipate.

⚠️ Pollution and legal liabilities can become financially material

The interview highlights PFAS, or "forever chemicals", as an example of how poor environmental management can lead to significant litigation risks and financial impacts. Investors who fail to understand these exposures may underestimate potential liabilities within portfolios.

🌟 Looking ahead, oceans may become an increasingly important investment theme

Hazra believes investors are beginning to recognise that ocean health is fundamental to long-term economic resilience. As understanding improves and frameworks mature, investors may increasingly integrate ocean considerations into portfolio construction, stewardship activities and risk management processes. He argues that healthy oceans are not merely an environmental goal but a prerequisite for sustainable economic growth.

💡 Why it matters:

Ocean health supports critical economic systems including climate regulation, food production, global trade and biodiversity. Yet despite its importance, oceans remain underrepresented within traditional investment analysis. Hazra's research suggests investors may already be exposed to significant ocean-related risks without fully recognising them. As data improves and awareness grows, the ability to identify ocean dependencies and incorporate them into investment decisions could become an increasingly important part of managing risk, protecting long-term returns and supporting a more sustainable global economy.

🎙️ Sources:

Sudip Hazra, director, First Sentier MUFG Sustainable Investment Institute

Michelle Baltazar, host, The Greener Way

⏱️ Timestamps:

00:00 – Why oceans should be viewed as economic infrastructure

01:15 – Introducing the Ocean Framework report

02:00 – Why investors already have ocean exposure

04:23 – Examples of ocean assets hidden in portfolios

05:28 – Coral reefs, biodiversity and business dependency

07:00 – Why oceans have been overlooked by investors

08:51 – Understanding the blue finance funding gap

10:17 – Climate change, oceans and investment implications

11:28 – How super funds can help close the funding gap

13:00 – Policy engagement and reducing marine pollution

14:37 – Responding to short-term investment concerns

15:21 – The financial risks of marine pollution

17:00 – Where investors should start integrating ocean risks

18:15 – The Ocean Framework and engagement toolkit

20:15 – Final messages for investors and super funds

🌿 We record on Gadigal Land and pay our respects to the traditional custodians of country and elders past and present.

https://www.fssustainability.com.au/

🌱 Financial inclusion in the age of AI: Why access matters more than ever

❓ Question:

As artificial intelligence transforms financial services, how can the industry use technology to improve financial inclusion, and why should sustainability professionals view access to finance as a core sustainability issue?

✅ Answer:

According to Stuart White, executive director of business development at Impax Asset Management, financial inclusion extends far beyond simply having a bank account. It encompasses access to affordable financial products and services, including savings, credit, insurance, investments and retirement solutions.

While Australia has one of the world's highest rates of financial account ownership, significant challenges remain around financial literacy, affordable advice, retirement preparedness and access to suitable financial products. White argues that AI and technology could help narrow these gaps by making financial services more personalised, accessible and cost-effective. However, real progress will require strong governance, diversity of thought in AI development, and a greater focus on what he calls "human sustainability" alongside environmental sustainability.

🌟 Financial inclusion goes far beyond banking

White says financial inclusion is about ensuring people can access affordable financial products throughout their lives. That includes bank accounts, savings products, fair-priced credit, insurance, investments and retirement savings solutions.

Importantly, financial inclusion also involves education and helping people better understand increasingly complex financial decisions.

🌟 Australia remains a global leader in retirement savings

Drawing on his experience with the UK's pension system, White points to Australia's compulsory superannuation framework as a leading example of long-term financial inclusion.

While the UK has made significant progress through auto-enrolment pension schemes, Australia continues to demonstrate how consistent retirement contributions can improve financial outcomes across generations.

🌟 AI could dramatically lower the cost of financial advice

One of the biggest opportunities presented by AI is the potential to make financial guidance accessible to more people.

White notes that hybrid and technology-enabled advice models have already significantly reduced costs compared with traditional financial advice. As AI tools become more sophisticated, consumers may gain access to personalised financial support at a fraction of today's cost.

🌟 Personalisation could improve access to financial products

AI has the potential to create more accurate credit assessments and better match people with suitable financial products.

From lending and mortgages to savings and investment solutions, technology may help providers deliver services tailored to individual needs rather than relying on broad demographic assumptions.

🌟 Governance and safeguards remain critical

While AI creates opportunities, White cautions that risks are growing at the same time.

Cybercrime, deepfakes, scams and algorithmic bias all present challenges that must be addressed through strong governance frameworks. He argues that human oversight remains essential to ensure AI systems operate fairly and responsibly.

🌟 Diversity helps reduce bias in financial technology

White is a strong advocate for diversity and inclusion across financial services.

When designing AI systems, he believes diverse teams are better positioned to identify blind spots and reduce unconscious bias in algorithms. Diversity of thought, experience and backgrounds plays an important role in creating financial products that better serve society as a whole.

🌟 Financial inclusion supports economic growth

Greater access to financial services benefits not only individuals but entire economies.

White argues that helping more people save, invest and build financial resilience creates stronger communities, improves intergenerational wealth transfer and contributes to long-term economic prosperity.

🌟 The investment industry can play a larger role

Institutional investors are increasingly recognising financial inclusion as part of a broader sustainability agenda.

White says access to finance is one of the key sustainability themes considered by Impax Asset Management and should be viewed both as a societal opportunity and an investment consideration.

🌟 Sustainability is becoming more pragmatic and commercial

White believes sustainability is entering a new phase.

Rather than being driven primarily by ideology, sustainability is increasingly being linked to practical concerns such as energy security, economic resilience, supply chains and financial wellbeing. This pragmatic approach is helping organisations connect sustainability outcomes with commercial value creation.

💡 Why it matters:

Much of the sustainability conversation focuses on climate change, biodiversity and decarbonisation. However, financial inclusion is equally important for creating resilient communities and sustainable economies.

As AI reshapes financial services, organisations have an opportunity to improve access to affordable advice, credit, savings and retirement solutions. For sustainability professionals, the challenge is ensuring new technologies are designed responsibly and deliver benefits fairly across society. White argues that "human sustainability" should become a permanent part of boardroom discussions, sitting alongside environmental priorities as a core pillar of long-term value creation.

🎙️ Sources:

• Stuart White, executive director of business development, Impax Asset Management
• Michelle Baltazar, host, The Greener Way
• Impax Asset Management
• Nest (National Employment Savings Trust)

⏱️ Timestamps:

00:24 Introduction to Stuart White and financial inclusion

03:00 Defining financial inclusion beyond bank accounts

04:35 The biggest global financial inclusion gaps

06:31 How AI can improve access to financial services

08:13 Governance, cybersecurity and AI risks

09:30 Diversity and bias in AI development

11:40 How financial inclusion benefits economies

13:33 Creating jobs and investing for future prosperity

15:11 Practical lessons for sustainability professionals

16:29 Why sustainability is becoming more commercial and pragmatic

18:40 The case for human sustainability

🌿 We record on Gadigal Land and pay our respects to the traditional custodians of country and elders past and present.

🔥 Climate Investors Have a New Obsession: Energy Security

❓ Question:

As geopolitical tensions rise, physical climate risks intensify and energy systems undergo rapid transformation, how are institutional investors approaching climate investing in 2026, and where do they see the biggest opportunities and challenges ahead?

✅ Answer:

According to Lucian Peppelenbos, climate and biodiversity strategist at Robeco, institutional investors remain committed to climate investing, but their motivations are evolving. While climate change remains an important consideration, investors are increasingly focused on performance, energy security and managing physical climate risks rather than pursuing net-zero objectives for their own sake. The findings come from Robeco's 2026 Global Climate Investing Survey, which surveyed 300 institutional investors representing US$35 trillion in assets.

Peppelenbos argues that climate investing is entering a more mature phase. Rather than being driven primarily by ambition and commitments, investors are now concentrating on practical investment opportunities created by the energy transition, particularly in renewable energy, energy infrastructure, electricity grids and battery storage. At the same time, they are becoming more aware of the financial consequences of climate-related physical risks, including floods, bushfires and extreme weather events.

🌟 Climate investing may have moved beyond the hype cycle

One of the survey's most notable findings is that investor enthusiasm for climate investing appears to have stabilised after several years of decline. Peppelenbos describes this as a "net-zero hype cycle". Investor support reached very high levels several years ago before falling as the realities and complexities of the transition became clearer. The latest survey suggests that downturn may have bottomed out, with investors expecting climate considerations to become increasingly important again over the coming years.

🌟 Energy security is becoming a powerful investment driver

While climate policy remains important, many investors now view energy security as an equally compelling reason to invest in the transition. Peppelenbos says ongoing geopolitical tensions, including disruptions to global energy markets, have strengthened the case for domestic renewable energy generation. Renewable energy is increasingly being viewed not only as a decarbonisation solution but also as a way to reduce exposure to geopolitical risks associated with fossil fuel dependence.

🌟 Renewables, electricity grids and batteries remain investment favourites

Institutional investors continue to see attractive opportunities in renewable energy, electricity grids and related infrastructure. However, battery storage is emerging as an increasingly important theme. As renewable generation grows, storage solutions are becoming critical for balancing electricity supply and demand. Peppelenbos says investors are paying closer attention to batteries because they help support more resilient and secure energy systems.

🌟 Investors expect a disorderly climate transition

The survey found that many investors do not expect an orderly path to net zero. Instead, an overwhelming majority anticipate a future characterised by both significant transition risks and increasing physical climate risks. In other words, investors expect climate action to occur too slowly to fully avoid the consequences of global warming, creating challenges on multiple fronts for economies, businesses and portfolios.

🌟 AI and data centres are being viewed as long-term sustainability enablers

Artificial intelligence and expanding data centre infrastructure are often criticised for increasing energy and water consumption. However, investors generally believe the long-term benefits will outweigh the short-term costs. Peppelenbos says many respondents view AI as creating upfront resource demands that could ultimately lead to a more efficient economy with lower emissions and better resource utilisation over time.

🚩 Physical climate risks are moving into investment decision-making

Investors are becoming increasingly concerned about the direct impact of extreme weather events on asset prices. According to the survey, many respondents expect physical climate risks to influence asset valuations within the next five years. As a result, investors are adapting portfolio construction, strategic asset allocation and stock selection processes to better account for these risks.

🚩 Data challenges remain a major obstacle

Despite growing awareness, incorporating physical climate risk into investment decisions remains difficult. Peppelenbos explains that climate-risk modelling has traditionally been used within risk-management teams rather than investment teams. The challenge now is converting climate scenarios and risk analysis into practical inputs that can be incorporated into investment decisions and asset valuation frameworks.

⚠️ Insurance markets may face increasing pressure

Climate risk is creating both opportunities and concerns for insurers. Demand for insurance, reinsurance and catastrophe-related products is growing, but there are also concerns about whether some risks will remain insurable. Peppelenbos points to instances where insurers have retreated from high-risk regions, potentially exposing homeowners and creating longer-term implications for property values and market stability.

⚠️ Regional approaches to climate investing remain very different

The survey highlights significant regional differences in investor sentiment. European and Asia-Pacific investors continue to place greater emphasis on climate investing than their US counterparts. While enthusiasm in Europe has moderated since its peak, Asia-Pacific investors have remained relatively consistent in their approach, suggesting that climate investing continues to evolve differently across regions.

🌟 The next phase of climate investing may be more pragmatic

Peppelenbos believes the future of climate investing will be less ideological and more commercially focused. Investors are still pursuing renewable energy and climate-related opportunities, but increasingly because they see strong long-term economic fundamentals and attractive investment outcomes rather than simply because they align with net-zero goals.

💡 Why it matters:

Climate investing is no longer just about emissions targets and sustainability commitments. Institutional investors are increasingly approaching the transition through the lens of energy security, economic resilience and risk management. The growing focus on batteries, electricity infrastructure, renewable energy and physical climate risks suggests that climate-related investing is becoming more integrated into mainstream portfolio construction. For investors and asset owners, understanding these changing priorities may help identify where capital flows, opportunities and risks are likely to emerge over the next decade.

🎙️ Sources:

• Lucian Peppelenbos, climate & biodiversity strategist, Robeco
• Michelle Baltazar, host, The Greener Way
• Robeco 2026 Global Climate Investing Survey

⏱️ Timestamps:

00:00 – Investors expect a "too little, too late" climate transition

00:13 – Introduction to Robeco's 2026 Climate Investing Survey

01:10 – Who participated in the survey and why it matters

02:01 – Climate investing's hype cycle and changing priorities

04:00 – Regional differences between Europe, Asia-Pacific and the US

05:27 – Why investors expect both transition and physical risks

06:15 – Energy security's growing influence on investment decisions

08:07 – Renewable energy, grids and battery storage opportunities

09:01 – AI, data centres and sustainability impacts

10:42 – Net-zero goals versus investment performance

12:22 – Physical climate risks and asset pricing implications

14:25 – Insurance markets and climate-related challenges

15:39 – Key investment takeaways from the survey

🌿 We record on Gadigal Land and pay our respects to the traditional custodians of country and elders past and present.