In this year’s summer series on PA Future, we have asked junior members of ESG/sustainability teams to answer our questions on career paths, red flags and personal passions, to showcase the ‘Next Generation‘ of talent coming through.
Candidates needed to be a member of a fund management, ESG/sustainability or stewardship/engagement team with less than five years’ experience.
Here, Katie Woodhouse, investment analyst at WHEB Asset Management, explains her passion for impact investing, her frustration with the slow pace of change to address climate change and how she prefers to see “short-term, achievable carbon reduction targets” instead of big, long-term strategies with no credible plan to achieve them.
How did you start your career and what led you to focus on ESG/sustainability? Is this a personal passion?
My passion for impact investment first arose in 2018 after reading Naomi Klein’s This Changes Everything: Capitalism vs the Climate. The book opened my eyes to the extraordinary levels of greenwashing that occurs in businesses and governments globally, as well as the significant repercussions the effects of climate change will have on everyone.
I began to make significant changes in my personal life – I converted to a plant-based diet, shopped locally and second-hand, and limited my air travel. However, I realised that my professional life was completely misaligned with my morals and so I took action to change this. I had no idea that impact investing existed until some late-night Google searches pointed me in the direction of WHEB Asset Management.
You joined the industry around five years ago, when appetite and launches in this area of investment soared. What was that like to experience as a relatively new starter to the industry?
Joining the impact investing industry five years ago was incredibly inspiring. Interest in the sector was at an all-time high, and impact stocks were performing exceptionally well. It felt like the world was finally waking up to the dangers and risks of climate change, and impact investing was emerging as a key solution for the future.
And what has it been like for you over the past few years where appetite has waned, and we have experienced the anti-ESG backlash in some areas?
It has been really worrying. My climate anxiety is at an all-time high! The waning interest in impact investing and the backlash against ESG initiatives reflect a broader societal disregard for the environment. Despite overwhelming evidence of the urgent need for action, such as surpassing the 1.5-degree limit set by the Paris Agreement, we are seeing limited progress. Without swift and serious action and investment, we will face more catastrophic climate events, which will disproportionately affect low-income countries. It is incredibly frustrating when something you are passionate about, and that affects the entire planet, is not taken with the seriousness it deserves.
What has been a career highlight for you?
I was incredibly proud to complete the CFA programme and join the investment team. However, prior to that, a significant career highlight for me was successfully completing WHEB’s first comprehensive GHG emission inventory calculation and establishing our science-based carbon reduction targets. This achievement not only aligned with my passion for sustainability but also demonstrated our firm’s commitment to measurable environmental impact.
What is a red flag you in terms of greenwashing? Are you happy to hold companies or individuals accountable for greenwashing?
A big red flag for me is when a company sets a net-zero target far in the future without a credible strategy to achieve it. I prefer to see shorter-term, achievable carbon reduction targets backed by evidence of concrete actions the company is taking. Many small actions, such as engaging with suppliers and staff to promote eco-friendly behaviours, can have a significant impact.
At WHEB, we absolutely hold companies accountable when they fail to meet our expectations. In 2023, 14% of all our engagements with portfolio companies focused specifically on net-zero targets and strategies.
Fast forward to five years from now – where would you like to be in terms of career aspirations? And how do you think the industry will have evolved by then?
In five years, I aspire to be in a position where I can influence strategic decisions at WHEB and contribute meaningfully to the performance of the business. I hope to lead initiatives that set higher standards within the industry.
I believe the industry will have evolved significantly by then, with increased transparency and stricter regulations to combat greenwashing. I hope there will be a stronger emphasis on accountability, pushing companies to adopt more genuine and impactful sustainability practices. The private sector also has a huge role to play in mitigating the effects of climate change and substantial levels of investment in climate solutions will be necessary to limit global warming.
Overall, I am optimistic that the next five years will bring about meaningful progress in the impact investing sector, with a growing commitment from both investors and companies to address global challenges more effectively.
