As a professor at Harvard Business School and an impact investor, I’ve had the privilege of developing and teaching the Sustainable Investing Course in the MBA program, where we explore how private and public capital — spanning private equity, venture capital, blended finance, public market equity and debt investing — can drive climate solutions, social impact, and sustainability-focused business models. By examining real-world cases and hearing insights from industry leaders, we’ve explored the complexities of aligning financial returns with meaningful impact.
Our exploration began with DBL Partners, a pioneer in blending financial returns with positive social outcomes. We discussed their Second Bottom Line framework and explored Bellwether Coffee’s electric roasting model, a compelling example of aligning profit with purpose. The conversation continued with the International Finance Corporation’s (IFC) Scaling Solar initiative in Zambia, where innovative credit facility design illustrated the delicate balance between financial returns and development impact.
We then turned to the intersection of venture capital and ocean sustainability, where SWEN Blue Ocean’s investment in WSense’s pioneering underwater communication networks demonstrated the challenge of valuing early-stage startups while ensuring scalable environmental impact. TotalEnergies Ventures’ investment in Hyzon Motors offered another layer of complexity, revealing the tension between short-term financial gains and long-term clean energy goals. The Brazilian blended finance model, Estímulo, provided valuable insights on sustaining impact-driven initiatives even in the face of economic volatility.
The course also examined TPG Rise Climate’s approach to balancing financial returns with environmental outcomes, underscoring the importance of Carbon Yield and IMM metrics in measuring impact effectively. Insights from Generation Investment Management’s assessment of Schneider Electric, Ford’s $2.5 billion green bond offering, and BlackRock’s active impact equity strategies further illustrated how public market investing can mobilize capital at scale for sustainable solutions.
Through cases on PortageBay, British International Investments, and Social Finance we analyzed various approaches to impact measurement and balancing returns and impact. And finally by doing a deep dive into one of the largest pension plans of the world – CPP Investments – we analyzed how large asset owners are incorporating Net Zero in their investment strategies.
A recurring theme throughout the course was the need for intentionality, innovation, and a willingness to challenge traditional financial models. Each case reinforced that private capital can play a vital role in driving the transition to a more sustainable economy — provided investors embrace scalable strategies that balance financial returns with long-term impact. As the climate crisis grows increasingly urgent, the role of investors in shaping a sustainable future has never been more important. Through ongoing research and dialogue, I aim to contribute to the conversation on sustainable capitalism and the power of finance as a force for good.