Approaching the Tipping Point: Recommendations for building the marketplace for system-level investing

The social and environmental challenges of the 21st century are new, different, and fundamentally destabilizing. Many of these challenges are systemic in nature; they are complex, interconnected global issues with multiple contributing factors. They impact entire economies and societies, threatening the global financial system and long-term investment returns across all asset classes.1 Income inequality, for example, is stirring nationalistic protectionist sentiments, upending democracies, and inciting trade wars. Human rights abuses, including modern slavery and human trafficking, are triggering war and conflict, and weakening societies. Systemic racism and sexism are stunting economic growth and fracturing social cohesion. Rapidly worsening climate change is accelerating natural disasters; these disasters are leading to mass migrations that threaten jobs and increase exploitation of the women and girls that comprise a disproportionate percentage of refugees. Military invasions of sovereign democracies are displacing millions of people and endangering global food and energy supplies.