Making Sustainable Investing Foxy

Jan Anton van Zanten ()
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Jan Anton van Zanten: Osmosis Investment Management NL

Chapter 5 in Big Money, Better World?, 2026, pp 61-81 from Springer

Abstract: Abstract If sustainable investing needs better tools, what should they look like? This chapter argues that effective sustainability screens must follow three principles: They must evaluate companies across multiple sustainability goals simultaneously; deliver an overall judgement that prioritizes avoiding harm over rewarding positive contributions; and be grounded in sustainability science. These principles are illustrated with SDG scores, which assess companies across all 17 Sustainable Development Goals. Unlike ESG ratings, which filter sustainability through a single lens of financial materiality, SDG scores evaluate companies on their real-world impacts – identifying true leaders and laggards rather than those that simply manage sustainability risks well. This gives the foxy investor a more accurate, evidence-based foundation for sustainable investing. The chapter then looks to the next frontier: forward-looking screens that indicate whether companies are likely to transition to more sustainable business models, for instance, through green capital expenditure, sustainable patent portfolios, or shifting revenues. It closes by examining portfolio construction: How stringent, how thematic, and how financially integrated a sustainable portfolio should be. The fox’s approach is harder than the hedgehog’s, but it is also the only one that aligns with the reality of sustainable development.

Keywords: SDG investing; sustainable investing strategies; SDG scores; sustainability screening; green capital expenditure; sustainable patents; portfolio construction (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1007/978-3-032-32442-9_5

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