Robert's Radical Truths

Sustainable Investment has no value

Since the financial crisis, it seems that no one wants to compensate anyone for services provided. TBLI is inundated with requests for introductions to investors, advice on ESG and Impact Investing, requests for management briefings, strategic partners, job openings, etc. It has reached epic proportions and it is not limited to us. Nearly everyone I speak to confirms they experience the same epidemic of requests for free advice or payment for success.

Why does it seem that anything related to sustainability is not valued and should be given away for free. Other traditional advisors (lawyers, accountants, strategy consultants) are compensated. Do people believe that sustainable investment (ESG and Impact) doesn’t offer any value, so doesn’t need to be compensated?  There doesn’t seem to be any difference between asset owners (family offices, HNW, pension funds), asset managers, social entrepreneurs, etc. All ask the same? “Let’s meet to share experiences”. ” Do you have time for coffee so I can pick your brain?” “I would like to talk to you about a great investment opportunity and would like to access your network and knowledge”.

Some of the Strategy Consultants are a bit more subtle by reaching out at a cocktail party or through an introduction. Then the seduction starts with the ultimate goal of sucking power point slides out of your brain to cut and paste later and sell to clients.

Recently I was approached by a large company asking for help meeting Impact Investors for a large water investment in Europe. I said we could help and would know who they should meet and asked for our time and knowledge to be compensated. They said “We don’t do that. We would be willing to compensate should something happen.” I told him “if you have a backache and you go to a massage therapist, do you say, if my back pain doesn’t come back in 6 months I will pay you.” He laughed and got the message. Still wouldn’t compensate but he got the message.

Sustainable Investment advice has value and needs to be compensated, particularly if you want someone to commit their time and energy.

Time is the most valuable thing a man can spend.