10 investment takeaways - from planetary boundaries to power-hungry data centres
Cleona Lira, inspirational founder of Conscious Money and member of Parmenion’s Ethical Oversight Committee, recently attended Pictet’s investment conference in London. Here she shares 10 key insights from the event - and why they matter.
- Pictet are incorporating the science-based planetary boundaries framework - created by the Stockholm Resilience Centre - into portfolio building
Investment strategies that use the planetary boundaries framework help identify environmental limits, enabling portfolios designed for long-term sustainability and risk management. - Six of the nine planetary boundaries have been breached
This concerning news highlights the urgent environmental risks that investors need to consider when assessing portfolio sustainability and long-term resilience. The good news? Ocean acidification shows signs of recovery - a rare glimpse of hope that regenerative action can work. - The GEO fund focuses on solutions
Investments are selected based on their impact on one or more planetary boundaries. It’s not just about avoiding harm; it’s about actively supporting solutions. - Data has a footprint - and it’s growing fast
In the U.S, electricity demand has increased sixfold over the last 20 years. Few consider the power and water needs of the real-time stock data we view daily. Data centres need large-scale cooling. Companies in the GEO fund provide efficient cooling and monitoring solutions for major banks in New York. - Corporations are the ‘sleepy giants’ on climate investment Consumers and governments invest a remarkably higher amount in climate mitigation strategies than corporations. As financial planners, we need to factor this into our view of engagement strategies; let’s wake up those sleeping giants!
- We need to move beyond ‘carbon tunnel vision’
Carbon isn’t the only issue. There are nine interconnected planetary boundaries. By focusing narrowly on carbon emissions, we risk missing broader impacts and opportunities for action. - Ecosystems underpin our economy
It’s not just about climate either; it’s about the ecosystems that provide the goods and services we rely on. When we damage these systems, we undermine the foundations of long-term value creation. Clean air, food systems, and clean water - our investments need to protect these too. - ‘Doing good’ and ‘reducing harm’ at the same time
Reducing harm is about managing transition, not just divestment. Investing in companies involved in transition can expand the investable universe and create a feedback loop that encourages more positive action. FinBio Mistra is a new tool from the Stockholm Resilience Centre to help investors understand biodiversity impacts. - Biodiversity - beyond ESG
Biodiversity represents a material financial risk. It goes beyond ESG metrics. The sixth mass extinction is driven by human activity. - Not all clean energy investments are equal
The payback time on solar and wind is relatively short. Nuclear energy, often part of the long-term solution, has high capital costs and can take a decade or more to pay back. This matters when considering timelines and risk-return profiles.
The message from the event was clear: the environmental crises we face are real - but so are the solutions. And the right investments can play a direct role in driving that change.
If your clients care about impact as well as returns, it’s time to look beyond labels. Explore how our ESG and impact investing solutions help align portfolios with real-world progress.
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This article is for financial professionals only. Any information contained within is of a general nature and should not be construed as a form of personal recommendation or financial advice. Nor is the information to be considered an offer or solicitation to deal in any financial instrument or to engage in any investment service or activity. Parmenion accepts no duty of care or liability for loss arising from any person acting, or refraining from acting, as a result of any information contained within this article. All investment carries risk. The value of investments, and the income from them, can go down as well as up and investors may get back less than they put in. Past performance is not a reliable indicator of future returns.
