According to new research from the Center for Sustainable Finance and Private Wealth (CSP) at the University of St.Gallen (HSG), and MIT Sloan Sustainability Initiative, noneconomic resources – such as personal networks, reputations, and specialized knowledge – play a critical but often overlooked role in driving change.
Drawing on 27 in-depth interviews with ultra-high-net-wealth impact investors from Europe, North America, Asia, and Australia, The Investor’s Guide to Multicapital Strategies maps out how deeply engaged investors and philanthropists strategically deploy all their forms of capital – beyond just financial capital – to accelerate impact.
“Despite substantial amounts of financial capital deployed, the world moves backward on sustainability topics ranging from climate change to inequality and democracy,” said Dr. Kirsten Andersen, lead author of the report and director of research at CSP. “Treating capital as purely economic ignores the many other assets that influence outcomes, often more powerfully. Economic capital may open doors, but it’s social, symbolic and cultural capital that fill the room – with community, visibility, and knowledge.”
This guide aims to equip current and future wealth holders with actionable approaches to accelerate and amplify their positive environmental and social impact in the world through the systematic and strategic activation of all their forms of capital – including ethical approaches, transparency in decision-making, diverse voices, and accountability – principles that become even more crucial as wealth holders activate diverse forms of capital.
“If we want to have a real impact, we must use the range of tools at our disposal and commit ourselves fully to driving change,” said André Hoffmann, cofounder of the CSP Foundation and vice chairman of Roche Holding, and an interviewee for the guide. “Many wealth holders I speak with genuinely want to create positive change, but underestimate the influence they carry. This guide shines a light on the pathways they can take to contribute to a better world.”
Case studies
Interviewees provide invaluable insight into their strategies. “If you get rich through capitalism, you have a responsibility to give back,” explains Urs Wietlisbach, a Swiss investor and one of the many interviewees whose values and early experiences inspire later decisions about philanthropy. Stories feature a lifetime of commitment to impact through all the pathways to capital. Entrepreneur Jeff Mendelsohn, founder of LocalCode, a regenerative development platform working in urban communities that have long been subjected to profound structural inequity, chose to position himself as a strategic partner to the local, Black female entrepreneurs with whom he cofounded the organization.
“An undeniable element of harnessing multicapital strategies is humility,” said Mendelsohn. “Learning when to step up – and when to step back – allowed me to do the most good. Community leaders lead. Our role is to recognize that purpose and help amplify it.”
Michael Au founded District Capital, a venture capital and private equity firm, and chairs Toniic, a global network of over 500 high-net-wealth individuals, family offices, and foundations in 25 countries.
“Impact investing allows us to express who we are and live our values in ways that are truly transformative,” said Au. “To make a meaningful contribution to humanity and the planet, we must reimagine the world – and address the root causes of its most urgent challenges.”
The guide allows readers to develop a multicapital deployment strategy, engage with complementary capitals from subject matter experts and community members, and consider multicapital strategies alongside other tools for impact. The full guide is available here. CSP will also host trainings this year to translate research into action. CSP has trained thousands of wealth holders and their advisors from the Americas, Europe, Asia, and the Middle East, and has influenced over $30 billion in assets toward impact.
About the Investor Guides series
A decade ago, CSP documented investors’ uncertainty about creating impact with capital. Since then, CSP’s investor guides have brought topical, research-backed insights to thousands of wealth holders and decision-makers across sustainable finance, impact investing, and wealth management.
About the Center for Sustainable Finance and Private Wealth (CSP)
CSP is a vibrant network of wealth holders, researchers, educators and entrepreneurs committed to making private wealth a force for good. Our research and trainings empower private investors, philanthropists, inheritors, and their advisors to achieve greater and more systemic environmental and social impact using all their forms of capital. We operate globally with teams based in the U.S., Switzerland, and Singapore. Our academic home is at the University of St.Gallen (HSG) in Switzerland, working closely with the MIT Sloan School of Management Sustainability Initiative and the Stanford Center on Philanthropy and Civil Society.
MIT Sloan Sustainability Initiative
The MIT Sloan Sustainability Initiative is a leading voice in sustainable business and policy, with a mission to provide the best education, apply academic rigor to real world problems, and empower leaders everywhere to take action so humans and nature can thrive. Housed at the MIT Sloan School of Management – birthplace of systems thinking, system dynamics, and modeling of complex human and environment interactions – we are deeply committed to advancing systems change for an equitable and sustainable world.
For more information and interviews contact Mariya Parodi [email protected].
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