Sustainable Investing

Bridgewater’s Co-Chief Investment Officer for Sustainability Karen Karniol-Tambour participated in a panel hosted by the Conference of Montreal to discuss how investors can use systemization to enable sustainable investing at scale. Karen describes how, in an economic environment that increasingly relies on the coordination between fiscal and monetary policy to stimulate economic growth, issues of sustainability are critical to understanding today’s world.

As macroeconomic investors, we focus on questions about the impact of climate change on the major economies around the world. There is considerable uncertainty regarding the physical impacts of climate change on economies; as we surveyed expert views on the topic, we found a wide range of plausible outcomes for investors to consider. While the physical impacts of climate change will take years to play out, the economic and market impacts of policy choices or other human responses to climate change are likely to take place much faster.

Bridgewater Founder and Co-CIO Ray Dalio explores why capitalism is not working for the majority of Americans, diagnoses why it is producing these inadequate results, and offers some suggestions for what can be done to reform it. These problems are creating widening income, wealth, and opportunity gaps which pose existential threats, bringing about damaging domestic and international conflicts and weakening America’s condition.

Even before the COVID-19 crisis, it was clear that traditional economic measures had increasingly diverged from social outcomes. Despite a decade of economic expansion and falling unemployment, social conditions deteriorated across a variety of measures. COVID-19 has brought these pressures to a head. Looking ahead, social conditions will have rising impacts on markets as policy evolves to more explicitly consider such issues in evaluating its goals. Fiscal policy is likely to take on a greater role in the decade to come, and is inherently distributional. The Fed, too, is increasingly taking into account social disparities.

Populism is one of the biggest forces shaping economic conditions, fiscal and monetary policy and international relations. This report examines how the phenomenon typically germinates, grows, and runs its course.

Our approach to building a scalable, strategic asset allocation using assets aligned to the UN Sustainable Development Goals

Large, liquid public markets present many opportunities for investors seeking to incorporate environmental and social goals in their portfolios and create impact at institutional scale. Co-Chief Investment Officer for Sustainability Karen Karniol-Tambour discusses how investors can consider implementing sustainability assessments across asset classes at Top1000Funds Sustainability Digital 2021.

In this series, we explore the role of commodities in portfolios, including how to build a commodity allocation that is designed to meet investors' sustainability goals.

Co-Chief Investment Officer for Sustainability Karen Karniol-Tambour discusses our approach at Top1000Funds Sustainability Digital