Sustainable Growth Approaches

People sometimes see Acumen raising large amounts of commercial capital and assume we no longer need philanthropy. No sooner had we announced $250M for our Hardest-to-Reach fund — to bring off-grid light and electricity to 70 million people across 17 of Africa’s most challenging markets — than some concluded Acumen must be set. In fact, the opposite is true. First, let me acknowledge how tough this fundraising environment is. I couldn’t be prouder of the team and partners who made our Hardest-to-Reach announcement possible after 2.5 years of relentless effort. And yet it’s worth underscoring: none of this would have been possible without philanthropy. Philanthropy is the first mover. It allows us to place early bets in fragile markets like Malawi and Benin, cover the development costs needed to structure and raise investment across the capital spectrum and provide the technical assistance that builds capacity. To put a finer point on it: of the nearly $250M raised for Hardest-to-Reach, more than $80M is philanthropic. That risk-taking anchor made it possible to prove new models — and ultimately unlock institutional investment. During Climate Week last month, I met philanthropists who see this as the time to pivot from grantmaking toward impact investing. While I understand the instinct, I want to offer a reframing: it’s not either/or. If you want your capital to have lasting impact, there may be no better use than catalytic philanthropy — especially when deployed through blended finance models like Hardest-to-Reach. Philanthropy cannot see itself at the margins. It is catalytic capital — risk-taking, patient, and unabashedly impact-first — creating the conditions for commercial capital to follow. And it's more important now than ever as traditional aid shrinks and many governments shift from grants to investment approaches. At Acumen, philanthropy from donors at all levels remains our bedrock. It enables us to reach the hardest-to-reach, build inclusive markets where none exist, and keep social impact at the center of everything we do. And because solving problems of poverty is Acumen’s mission, raising philanthropic capital will remain essential to our work.

Integration of SDGs and ESG Pillars 🌎 For businesses committed to sustainability, effectively categorizing Sustainable Development Goals (SDGs) under Environmental, Social, and Governance (ESG) pillars can streamline strategic planning and operational execution. This approach clarifies how initiatives within these pillars can directly contribute to achieving broader global goals, thus enhancing business impact and compliance. The Environmental Pillar of ESG aligns with SDGs focused on ecological stability, such as Climate Action, Clean Water and Sanitation, and Affordable and Clean Energy. Businesses that enhance their environmental strategies not only adhere to regulatory demands but also drive efficiencies in resource use, which can lead to reduced operational costs and improved market positioning. Under the Social Pillar, SDGs like Quality Education, Gender Equality, and Decent Work and Economic Growth are pivotal. By focusing on these areas, companies can foster a more inclusive and equitable work environment, enhancing employee satisfaction and community relations, which are crucial for long-term business sustainability and customer loyalty. The Governance Pillar supports the achievement of SDGs related to ethical practices and equitable growth, including Industry, Innovation, and Infrastructure, and Peace, Justice, and Strong Institutions. Strengthening governance can help businesses manage risk, operate transparently, and maintain compliance with increasing legal standards, securing trust and support from investors and stakeholders. Integrating SDGs with ESG initiatives allows businesses to not only address specific global challenges but also to enhance their strategic planning processes. This structured approach provides a clear pathway for companies to evaluate their impact, set measurable targets, and communicate progress in a manner that resonates with global standards and stakeholder expectations. Furthermore, while the example diagram shows one method of mapping SDGs to ESG pillars, businesses are encouraged to adapt this framework to better suit their specific contexts and strategic objectives. Understanding and applying this integration effectively empowers companies to tackle complex sustainability challenges, paving the way for innovation and leadership in their industries. By leveraging the SDGs as a guide to categorize and prioritize ESG efforts, businesses can ensure that their sustainability initiatives are not only impactful but also aligned with global objectives, enhancing overall business resilience and reputation. #sustainability #sustainable #business #esg #climatechange #climateaction #sdgs #impact #strategy

THE WORLD’S FIRST INDUSTRIAL ELECTRIFICATION AUCTION: The European Commission has published the final Terms & Conditions for the first EU-wide Innovation Fund pilot auction to decarbonise industrial process heat — backed by a €1B budget. This is a pivotal move to scale electrification and direct renewable heat in industry and a concrete step toward the Industrial Decarbonisation Bank. Key features: - Targeting a major emissions source: Process heat is one of the largest contributors to industrial CO2, powering high-temperature operations in chemicals, steel, cement, food & bev, glass, paper, and more. - Tech scope is broad: Eligible solutions include electrified heat (industrial heat pumps, electric boilers, resistance heating, induction, plasma torches), direct renewable heat (solar thermal, geothermal), and hybrid systems. - Results-based support: Successful bidders receive a fixed premium subsidy per tonne of CO2 directly abated, for up to 5 years — de-risking capex decisions and narrowing the cost delta vs. fossil-fired heat. - System-friendly design: The rules encourage flexibility measures that shift load away from peak hours, aligning decarbonisation with grid stability and affordability. - Open to all sizes and sectors across the EEA: From retrofits in existing plants to greenfield lines, scaling bankable projects becomes more feasible. - Timing: The auction is expected to open in early December 2025 — giving developers a short runway to finalise configurations, partners, and M&V plans. Strategic impact: - Accelerates industrial competitiveness by lowering exposure to volatile fossil fuel prices and carbon costs (EU ETS). - Strengthens energy security and affordability through electrification and locally available renewables. - Builds a pipeline for the future Industrial Decarbonisation Bank, signalling durable public support for clean heat at scale. https://lnkd.in/eV5FK-4s

🌍 You wouldn't know it from the news, but more than twice as many companies are increasing their climate commitments than backtracking! A new report by PwC and CDP shows that despite anti-ESG moves in some areas, sustainability and climate action are not at all dead, or even dormant! 💡 𝗦𝗼𝗺𝗲 𝗸𝗲𝘆 𝗳𝗶𝗻𝗱𝗶𝗻𝗴𝘀: - The number of companies making climate commitments continues to grow. - More than 4,000 reported through CDP in 2024, up nine-fold over the last 5 years. - 84% of companies are maintaining or strengthening their climate ambition - 37% of companies are increasing their ambitions while only 16% are getting less aggressive. - 83% of companies report R&D investment in low-carbon products and services. - Products featuring sustainability attributes can achieve a revenue increase of 6% to 25%+ over products without such emphasis. - The commitments are durable through leadership transitions: Companies stand by their commitments even after a departing CEO’s successor is hired. 𝗠𝘆 𝘁𝗮𝗸𝗲: These results should hearten anyone who feels lonely in their sustainability team or that everyone is backing away. Neither of those things are true. This fits into the conversations I've been having with firms about 2025 being a year of implementation. More work than ever before is going into integrating sustainability across the firm and using its data and insights to navigate a rapidly changing world. #climate #netzero #decarbonization #sciencebasedtargets #ESG #sustainability Net Zero Tracker SBTI

🚨 The International Energy Agency (IEA)’s new #NetZeroRoadmap is out! 🚨   The path to limiting global warming to 1.5C has narrowed since 2021, but despite stubbornly high emissions, the staggering growth of clean energy technologies like solar & EVs is keeping it open. Read more in the press release: https://iea.li/4642rrj   We have the tools we need to shift to a net zero pathway. Expanding renewable power, accelerating energy efficiency progress, electrification of transport & tackling methane together deliver more than 80% of the emissions reductions required by 2030. Explore the report: https://iea.li/3ETINlW   The key goals for 2030, based on proven & often cost-effective technologies:   ∙Tripling renewable capacity ∙Doubling energy efficiency ∙Cutting methane by 75%   These actions drive down fossil fuel demand by over 25% by 2030; solar & EVs are already growing in line with them.   In our new roadmap, strong growth in clean energy drives a marked decline in fossil fuel use. A major & urgent mobilisation of clean energy investment is the key to making this happen – especially in emerging & developing economies where financing is lacking the most.   Our updated pathway offers key milestones for policy makers worldwide. For example, as a result of the decline in fossil fuel demand, no new long-lead-time upstream oil & gas projects are needed. Neither are new coal mines, mine extensions or new unabated coal plants.   The shift to net zero speeds up the emergence of the new global energy economy, opening big industrial opportunities in clean energy supply chains. If all projects announced today proceed, solar PV manufacturing will exceed the 2030 level in our pathway & batteries will be close.   Clean energy #innovation is moving fast. In our original Net Zero Roadmap in 2021, technologies not yet available on the market delivered nearly half the emissions reductions needed for net zero in 2050. That's now down to around 35% in this year’s update thanks to recent progress.   Moving toward net zero brings many benefits, including lower energy costs in emerging & developing economies. But the risks also need to be managed, including supplies of critical minerals & the need to ramp up investment to expand & modernise power grids around the world.   The clean energy transition is for & about people. It needs to be inclusive & equitable. In our pathway, full access to modern forms of #energy is achieved for everyone worldwide by 2030. And advanced economies reach net zero sooner to allow other economies more time to do so.   To learn more, join our Director of Outlooks Laura Cozzi, Chief Energy Technology Officer Timur Gül & me for the LIVE launch event, starting at 11:00 CEST: https://iea.li/3rrcRC2

Datacenters are the foundation of our digital lives. They also create opportunities to demonstrate what’s possible when sustainability is treated as a design principle, not an afterthought. Teams around the world at Microsoft are tackling the energy and resource challenges of cloud computing head-on. In Europe alone, we’re implementing a variety of solutions: 🌱 Boosting biodiversity: Datacenters in the Netherlands are being designed with biomimicry principles, planting 150 native trees and 2,300 square meters of vegetation to restore habitats, improve water management, and reduce environmental impact. 💧 Saving water: We’re building datacenters in Spain with closed-loop cooling systems that fill once during construction and then continuously recirculate water between servers and chillers, eliminating the need for additional water and dramatically reducing consumption. 🔁 Cutting carbon: A new datacenter in Wales is being built using materials from a shuttered radiator factory, avoiding hundreds of tons of CO₂ emissions through smart reuse. ⚡ Stabilizing the grid: Across the Nordics, battery-backed systems help maintain steady grid frequency, making renewable energy easier to integrate and supporting a more resilient power supply. 🔥 Heating homes and businesses: Recovered heat from datacenters in Finland will help warm up to 250,000 homes and businesses through a municipal heating system. Denmark is setting up a similar system to extend the benefits of sustainable heating to more communities. Every day I am blown away by the creativity and ingenuity of these teams and our local partners. Check out these prime examples of this work. Read the latest story from Source to learn more: https://lnkd.in/gUtARfJ3 

💭 "Sometimes sustainability costs more. So what?" This bold question headlines Andrew Winston’s latest article in MIT Sloan Management Review. He challenges the outdated idea that sustainability initiatives must always deliver immediate, short-term financial gains to be worthwhile. Here are three key insights: 1️⃣ Strategic decisions often cost more upfront—but they’re worth it: Businesses routinely invest in R&D, marketing, or technology upgrades that cost more initially but unlock long-term value. Sustainability is no different. Winston shows how initiatives like adopting low-carbon materials may raise short-term costs but position companies for future success. 🌍 2️⃣ The cost of inaction far outweighs short-term expenses: Ignoring sustainability comes with immense risks, as climate change disrupts operations and renders regions uninhabitable. Inaction today will halt tomorrow’s economic activity, making sustainability a necessity, not a choice. 3️⃣ Sustainability is a long-term value driver: While it doesn’t always deliver immediate returns, sustainability underpins long-term growth. There’s no economy on a dying planet, and true leaders prioritize enduring value over quarterly gains. In my view, his argument resonates deeply with debates about business’s role in tackling global challenges. It also raises critical questions about how we frame and act on sustainability within our organizations. These insights prompted me to reflect on three essential themes: 🌟 Courage takes centre stage: True leadership means bold decisions, even without immediate payoff. Prioritizing sustainability amid investor scepticism redefines success in a rapidly changing world. 🚀 Sustainability drives innovation: Sustainability isn’t a constraint—it sparks new technologies and products that address environmental goals while securing market leadership. 💡 Reframing costs as investments: We see R&D or digital transformation as investments, yet dismiss sustainability as a cost. Shifting this mindset reveals sustainability as a tool for resilience, advantage, and industry leadership. Andrew’s piece is a powerful call for businesses to rethink outdated notions of cost and embrace sustainability’s transformative potential. 🌱 What do you think? How can we reshape this conversation in our companies and industries? ⬇️ Full article available here: https://lnkd.in/en2RMqs4 #Sustainability #Leadership #Innovation #CorporateStrategy #FutureOfBusiness

The wine industry isn’t in crisis. It’s being recalibrated. This week I went deep into SVB’s latest report, CGA’s on-premise data, trade headlines from Drinks Business, and market signals from the US, Europe and South America. What’s emerging isn’t chaos. It’s clarity. The rules are changing. Fast. And if we’re honest, that’s exactly what we needed. SVB confirms what we’re all seeing. Boomers are ageing out, and younger consumers aren’t rushing in to fill the void. They’re drinking less, asking more questions, and choosing brands that reflect their identity and values. That’s not a threat. It’s a challenge. To stay relevant, we need to be more than wine. We need to mean something. CGA’s on-premise data shows US bar and restaurant visits are down, but spend per visit is up. The on-trade isn’t dead, it’s evolving. It’s becoming a curated, high-value discovery space. If your wine’s on the list, it better make an impression. One glass, one shot, one chance to connect. Then there’s the Oracles Craft Brands bankruptcy. A sharp reminder that the mid-tier importer model is under pressure. Thin margins, rising tariffs, fragile logistics. If your route to market relies on a single gatekeeper, you’re exposed. We need diversified, resilient pathways to trade. Not just contracts, but real relationships. Meanwhile, climate change isn’t coming. It’s here. And regenerative viticulture is no longer a fringe idea. It’s where serious producers are heading. Regenerative is a philosophy that reflects the future of farming, and the kind of integrity younger consumers expect. If we’re not already measuring soil health, biodiversity and impact, we’re behind. And then, the human factor. Chile’s Emily Faulconer being named among Los Más Influyentes del Vino is a sign of where the centre of gravity is shifting. People don’t want polished. They want personal. Story over spin. Connection over claims. So, what do we do? Relevance is now the key currency. Not heritage. Not technical prowess. That means understanding what drives consumption today: identity, values alignment, and trust. Route to market strategies must reflect geopolitical and structural realities. Overreliance on a single importer or legacy distribution model is a liability. The future lies in diversified partners. DTC infrastructure. On-premise strategies that build equity, not just volume. Regenerative viticulture is gaining traction because it speaks to quality, resilience, and ethics. Buyers are taking note, we need to future-proof production and pricing power. And most critically, brand value is shifting from institutional to individual. Consumers connect with people. The most effective storytelling is not crafted. It is lived, visible, and human. This is a moment to re-earn relevance with zero nostalgia for business as usual. #wineindustry #svbwine #cganiq #regenerativefarming #premiumwine #futureofwine #leadership #mclarenvale #winemarketing #consumertrends #emilyfaulconer

Shell has published its new #energy #scenarios. Of course these always have to be taken with a pinch of salt, but very good food for thought! In particular because this time Shell reflects on the complexities of balancing economic growth, energy security and environmental concerns with a more realistic approach driven by current trends and national interests. They consider 3 future scenarios: 🔸 "Horizon" is a normative scenario, in that specific targets are incorporated to reach #netzero CO2 emissions by 2050 (and negative emissions beyond 2050) and deliver a global average surface temperature rise below 1.5°C by 2100. 🔸 In the "Archipelagos" scenario, the security mindset that is very visible today becomes entrenched worldwide, with national self-interest prevailing. Global sentiment shifts away from managing emissions towards resource, border and trade security.  Emissions continue to fall throughout the century, with net zero in sight, but still not achieved, by 2100. The global average surface temperature rise is levelling off at around 2.2°C by 2100. 🔸 The most interesting scenario, because comparably little analysed yet, is "Surge", where #ArtificialIntelligence (#AI) technologies take root and usher in a period of stronger economic growth. This comes with higher energy demand (incl. but not only from data centers), and rapid technology innovation leading to disruptive change. The energy system shifts more rapidly towards production of components as modules which are then assembled “Lego-style” in the field. Winning technologies, beside solar #PV, #wind, #electrolysers, #heatpumps and #batteries, are - in the 2040s Direct Air Capture (#DAC) and Small Modular Nuclear Reactors (SMR). Net-zero is not achieved before 2080... Whole Shell report available here: https://lnkd.in/ejUFaqrc #EnergyTransition #Climatechange

I was invited to speak to the Chief Sustainability Officer group at the World Economic Forum during climate Week. I urged us all to take control of the narrative. Here is a summary... Let’s shift the narrative. As sustainability leaders… Let’s not talk about decarbonization as emissions. Let’s talk about it as innovation that drives: ·    energy cost savings, ·    avoidance of energy pricing volatility ·    avoidance of carbon fees ·    reduced maintenance ·    increased productivity ·    sales lift Let’s not talk about tons of waste diverted from landfill and reused, let’s talk about it as innovation that reduces: ·    virgin input costs ·    waste disposal costs ·    exposure to geopolitical risk in supply chains ·    exposure to tariffs (e.g. Renault is putting 45% of used car components into new cars) Our research into the Return on Sustainability Investment (ROSI) shows that sustainability is just good management.   The methodology (developed with companies) has found nine value drivers associated with sustainability, including operational efficiency, risk reduction, employee retention and productivity, sales and marketing, and and innovation and growth. For example, innovation is about identifying a problem or an opportunity. It can be focused on process, product or service. It can be incremental or transformative. From a sustainability perspective, innovations fall into two broad buckets:  ·    innovating sustainability improvements in an industry or a category ·    innovating with a process, product or service that is needed by society. The first approach requires understanding the material ESG issues for the sector and designing solutions that tackle that issue, while also improving the underlying value proposition - -which sustainability can do. The second approach is tougher, but has more potential to go big: Innovating to solve broad societal problems such as water scarcity, plastic packaging pollution and health impacts, tackling the carbon transition, social inequity and so on. Here we might look at innovation such as 3D printing (e.g. on demand) using recycled inputs – tires, dresses, construction materials etc. We might look at bio-based plastic made from air and methane-based greenhouse gas dissolved in saltwater, recyclable through biological digestion. We might look at how to give immigrants and others with no credit history access to credit through tracking ontime rental payments. So as you work with your companies, help them understand that managing the material ESG issues for their sector and company is not a reporting and compliance exercise. It is a good management exercise that can drive everything from operational efficiency to sales and customer loyalty to innovation that will help the bottomline. Put in place methods such as ROSI with your finance team or ESG controller to track the financial benefits so you can get sustainability to the speed and scale you and the planet want and need.