# A theory of change for climate investing [partner content]

- Show: [Catalyst](https://hardwarepodcasts.com/podcast/catalyst)
- Published: 2023-03-08
- Length: 23m
- Page: https://hardwarepodcasts.com/podcast/catalyst/2023-03-08-a-theory-of-change-for-climate-investing-partner-content

## Summary

Zach Stein, co-founder and CEO of Carbon Collective, explains the firm's strategy of building climate-focused portfolios by excluding fossil fuels and engaging with companies that can transition to a post-carbon world. He distinguishes sustainable investing from the broader, often greenwashed ESG framework, arguing that ESG metrics can obscure environmental risks by weighting social and governance factors too heavily. Stein highlights the long-term underperformance of oil and gas stocks compared to the S&P 500 and advocates for engaging with 'engageable' corporates like utilities and big-box retailers to drive decarbonization rather than trying to change fossil fuel majors from the inside.

## Chapters

- [0:09](https://hardwarepodcasts.com/podcast/catalyst/2023-03-08-a-theory-of-change-for-climate-investing-partner-content#t=9) Introduction: Zach Stein and Carbon Collective
- [1:09](https://hardwarepodcasts.com/podcast/catalyst/2023-03-08-a-theory-of-change-for-climate-investing-partner-content#t=69) The Long-Term Underperformance of Fossil Fuels
- [6:03](https://hardwarepodcasts.com/podcast/catalyst/2023-03-08-a-theory-of-change-for-climate-investing-partner-content#t=363) Defining Climate Solutions and Engageable Universes
- [3:31](https://hardwarepodcasts.com/podcast/catalyst/2023-03-08-a-theory-of-change-for-climate-investing-partner-content#t=211) The Problem with ESG and Greenwashing
- [14:31](https://hardwarepodcasts.com/podcast/catalyst/2023-03-08-a-theory-of-change-for-climate-investing-partner-content#t=871) Performance Risks and Political Pushback
- [19:21](https://hardwarepodcasts.com/podcast/catalyst/2023-03-08-a-theory-of-change-for-climate-investing-partner-content#t=1161) Theory of Change: Engagement and Narrative

## Topics

- [Fundraising & investors](https://hardwarepodcasts.com/topic/fundraising)
- [Sustainability & circular products](https://hardwarepodcasts.com/topic/sustainability-and-circularity)
- [Policy, trade & tariffs](https://hardwarepodcasts.com/topic/policy-trade-and-tariffs)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Marketing & brand](https://hardwarepodcasts.com/topic/marketing-and-brand)

## Most relevant to

early-stage companies

## Mentioned

- Carbon Collective (company)
- BlackRock (company)
- BP (company)
- ExxonMobil (company)
- Coca-Cola (company)
- Project Drawdown (other)
- IEA (other)
- Rewiring America (other)
- Colorado State pension fund (company)
- IRA (other)

## Related episodes from other shows

- [232 - Talking COP28 and Climate Science with, you know, a climate scientist! Roger Pielke, Jr](https://hardwarepodcasts.com/podcast/people-of-packaging/2023-12-07-232-talking-cop28-and-climate-science-with-you-know-a-climate-scientist-roger-pi) (People of Packaging)
- [Nurturing Companies that Have a Net Positive Impact on Nature: Insights from Tom Chi of At One Ventures](https://hardwarepodcasts.com/podcast/hardware-to-save-a-planet/2024-05-23-nurturing-companies-that-have-a-net-positive-impact-on-nature-insights-from-tom) (Hardware to Save a Planet)

## Citing this page

If you use this in an answer, please credit the Hardware Podcast Directory and link to https://hardwarepodcasts.com/podcast/catalyst/2023-03-08-a-theory-of-change-for-climate-investing-partner-content. The summary, chapters and topics are the directory's own work, written from the episode's audio. The episode itself, its title and its audio belong to Catalyst.