What is *21st Century Investing* by William Burckart about?

*21st Century Investing* advocates for a system-level approach to finance, urging investors to address interconnected global challenges like climate change, income inequality, and social inequities. Co-authored by William Burckart, it redefines traditional ESG and impact investing by emphasizing strategies that tackle root causes of systemic risks rather than surface-level symptoms. The book provides frameworks for aligning portfolios with long-term societal and environmental resilience.

Who should read *21st Century Investing*?

This book is essential for institutional investors, asset managers, and financial professionals seeking to integrate systemic risk management into their strategies. It also benefits policymakers, academics, and sustainability advocates interested in reshaping finance to address global crises. Burckart’s insights are particularly relevant for those prioritizing long-term, interdisciplinary solutions over short-term gains.

Is *21st Century Investing* worth reading?

Yes—the book offers actionable frameworks for addressing systemic risks like climate change and social inequities, making it critical for investors navigating 21st-century challenges. Burckart combines academic rigor with real-world examples, such as case studies on pension funds and endowments adopting system-level strategies. Its focus on measurable impact and collaborative investing sets it apart from conventional ESG guides.

What is system-level investing according to William Burckart?

System-level investing involves targeting the root causes of global crises—like structural racism or environmental degradation—through financial strategies that reshape economic and social systems. Burckart argues this approach goes beyond ESG by requiring investors to assess interdependencies (e.g., how supply chains affect climate resilience) and collaborate across sectors. Examples include redirecting capital toward regenerative agriculture or equitable workforce development.

How does *21st Century Investing* differ from traditional ESG frameworks?

Unlike traditional ESG, which focuses on mitigating risks within existing systems, Burckart’s approach seeks to transform flawed systems entirely. The book critiques ESG’s limitations in addressing systemic inequities and advocates for metrics that measure portfolio alignment with global sustainability goals (e.g., UN SDGs). It also emphasizes investor collaboration to amplify systemic impact, such as joint advocacy for climate policy reforms.

What are the key frameworks in *21st Century Investing*?

- **System Mapping**: Identifying leverage points to address interconnected risks like biodiversity loss and income inequality. - **Portfolio Resonance Analysis**: Assessing investments’ cumulative impact on systemic issues. - **Collaborative Governance Models**: Structuring partnerships between investors, governments, and NGOs to drive large-scale change. These tools help investors shift from siloed strategies to holistic, cross-sector solutions.

How can investors apply Burckart’s strategies to climate change?

The book recommends investing in renewable energy infrastructure while simultaneously lobbying for carbon pricing policies and divesting from fossil fuel-linked assets. Burckart highlights case studies like pension funds supporting green tech R&D and insurance firms integrating climate resilience into underwriting criteria. Key steps include analyzing portfolio exposure to climate feedback loops and aligning with science-based transition pathways.

What critiques does *21st Century Investing* address about modern finance?

Burckart critiques short-termism, fragmented risk assessments, and overreliance on ESG scoring systems that ignore systemic interdependencies. He argues conventional portfolios often exacerbate inequality and environmental degradation by prioritizing narrow financial returns over societal health. The book also challenges the notion that shareholder value maximization aligns with public good, advocating for stakeholder-centric models instead.

21st Century Investing

Redirecting Financial Strategies to Drive Systems Change 

William Burckart & Steven D. & Lydenberg

3.07(28 Reviews)

Overview of 21st Century Investing

In "21st Century Investing," Burckart and Lydenberg revolutionize finance with "system-level investing" - a paradigm endorsed by Oxford's Robert Eccles as "the future direction of investing." What if sustainable profits actually require fixing the broken systems they depend on?

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Chapter 1

The Investment Revolution We Need Now

What if the way we've been investing is fundamentally broken? Not just inefficient or slightly misguided, but actively undermining the very systems upon which our investments depend? This is the provocative premise of "21st Century Investing," a groundbreaking work that arrives at a pivotal moment in financial history. As Ray Dalio, founder of the world's largest hedge fund, has observed, today's income inequality mirrors the conditions that preceded major historical conflicts. Meanwhile, climate change threatens to destabilize economies worldwide, with BlackRock CEO Larry Fink warning that it represents "a structural, long-term crisis" requiring a fundamental reshaping of finance. The book has become required reading at institutions like Harvard Business School and has influenced policy discussions at central banks worldwide. Its message is clear: conventional investment approaches focused solely on portfolio risk management are dangerously inadequate for our interconnected world.

Chapter 2

Beyond Returns: The New Investment Paradigm

Traditional investment thinking treats social and environmental systems as externalities-factors outside the scope of financial consideration. Modern portfolio theory, developed between 1953 and 1972, revolutionized finance by focusing on portfolio-level risk management rather than just avoiding risky securities. While effective in many ways, this approach assumes investors cannot influence systematic market risks and should only be evaluated on their performance relative to the market. The 2008 financial crisis challenged this assumption, raising profound questions about investors' responsibility for system-wide damage. Meanwhile, the financial industry's growing size-with global wealth exceeding $360 trillion-has dramatically increased its potential impact on fundamental systems. System-level investing represents the next evolution beyond both conventional and sustainable investment approaches. While conventional investors focus solely on financial returns and sustainable investors add social and environmental considerations to their portfolios, system-level investors recognize their power to impact-and responsibility to support-the health and stability of essential systems. These systems include healthcare, food security, fair employment, financial markets, climate stability, and natural resources. All are interconnected, with disruptions in one system potentially cascading through others. The scale of our economy can now destabilize crucial systems in unprecedented ways, requiring a new investment approach that intentionally manages impacts on these systems. The distinction becomes clear when examining how different investors approach climate change. Conventional investors view it primarily as an opportunity-from Arctic oil drilling to building border fences for climate refugees. Sustainable investors focus on keeping portfolios "clean" through fossil fuel divestment while adding renewable energy companies. System-level investors take a more holistic approach, building portfolios demonstrating an alternative vision while advocating for mandatory disclosure, joining collaborative efforts like Climate Action 100+, creating new markets for climate-friendly products, and supporting regulatory measures promoting climate-friendly industries. This isn't just idealism-it's financial pragmatism. Over 90% of investment returns come from the market's overall performance ("beta") rather than individual stock selection ("alpha"). By strengthening the systems that support markets, system-level investors aim to enhance returns for everyone while mitigating catastrophic risks.

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Chapter 3

Identifying True Systemic Challenges

Not every social or environmental issue warrants a system-level approach. Determining which issues truly deserve this level of consideration requires careful evaluation using four specific criteria: consensus, relevance, effectiveness, and uncertainty. Consensus asks whether an issue has achieved broad agreement regarding its legitimacy and importance. The wider this consensus, the stronger the case for treating it as a common good alongside private returns. Freedom from extreme poverty and access to healthcare, for example, are widely recognized components of societal well-being, endorsed by the UN Human Development Index, OECD's Better Life Index, and the Sustainable Development Goals. Relevance examines whether an issue substantially impacts long-term financial performance across multiple industries and asset classes. Income inequality exemplifies this criterion-the Cambridge Centre for Risk Studies projected that social unrest could reduce US equity portfolios by 1.76% to 22.69% depending on severity. Similarly, climate change has been identified as a "systemic risk" affecting 72 of 79 industries. Effectiveness considers whether investors can meaningfully influence a system's functioning. For healthcare, investors can improve access through investing in companies providing health products, technologies reducing costs, marketing to underserved populations, and collaborating with organizations increasing access. Conversely, school meal policies, while important, offer limited investor influence. Uncertainty examines whether an issue generates systemic uncertainties that conventional portfolio risk management tools cannot address. Climate change exemplifies this challenge-scientists struggle to predict sea level rises, let alone resulting migration patterns or societal impacts. By minimizing climate change severity, investors can reduce market uncertainty. Fresh water illustrates how these criteria work together. With 1.2 billion people living in water-scarce regions, water meets the consensus criterion through UN recognition as a human right. It satisfies the relevance criterion by impacting economic development across industries through capacity constraints, pollution effects, and workforce productivity. For effectiveness, investors can influence water systems through infrastructure, treatment, pollution control, and collaborative initiatives. Regarding uncertainty, the retreat of glaciers and depletion of aquifers create profound social and investment implications affecting billions of people dependent on major river systems and agricultural regions. Only issues meeting all four criteria deserve system-level approaches, distinguishing them from narrowly conceived interests or issues that can be managed through conventional portfolio risk techniques.

Chapter 4

Strategic Asset Allocation for System Impact

System-level investors strategically use different asset classes to create systemic change. They understand that each asset class has unique characteristics that can be leveraged for specific types of impact-fixed income can create public goods when issued by governments, public equities can influence incremental change in large firms, and venture capital can disrupt business models. Public equities allow investors to share in large corporations' profits while providing companies access to broad capital. These markets require corporate disclosure, giving investors data to pressure companies toward efficient and responsible operations. CalSTRS exemplifies this approach with its Low-Carbon Index, launched in 2017 with $2.5 billion. This passive equity management strategy aims to reduce carbon emissions across global markets by 61-93%. Through stewardship, CalSTRS also engages with companies like Duke Energy, securing commitments to reduce CO2 emissions 50% by 2030 and achieve net-zero by 2050. Private equity offers investors direct ownership in for-profit enterprises with freedom from public disclosure requirements. The Caisse de depot et placement du Quebec (CDPQ) uses direct private equity to promote economic growth in regions where its beneficiaries live. CDPQ has invested in Montreal's infrastructure, including a rapid-transit extension connecting downtown with the airport, while revitalizing downtown real estate. It also created a $250 million fund for artificial intelligence businesses in Canada. Venture capital is designed for rapid disruptive change. System-level investors use this asset class to create business models that address systemic risks or opportunities. CalSTRS has invested $691 million in clean energy private equity and $505 million in renewable power assets to drive innovation in these sectors. Bonds facilitate trading of loans by institutions and individuals. System-level investors value government and nonprofit bonds for funding public goods like affordable housing, transportation, water treatment, education, and healthcare. The green bond market has grown to nearly $1 trillion by 2019, with firms like Bank of America playing key roles in establishing principles for these instruments. Real estate and infrastructure investments profoundly impact social and environmental systems. Prudential Financial exemplifies a system-level approach with its $1.1 billion initiative to revitalize Newark, including $500 million in infrastructure investments, $438 million in impact investments, and $197 million in grants. Projects include their PGIM headquarters, the renovated Hahne building with mixed housing and retail, affordable housing complexes, and investments in innovative local businesses like AeroFarms. By targeting asset classes to key leverage points that enable systems to produce positive outcomes, investors contribute to expanding investment opportunities while aligning their practices with long-term systemic goals.

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Chapter 5

Extending Traditional Investment Tools

System-level investors adapt familiar investment tools to address systemic challenges. Investment beliefs statements (IBS) articulate investors' fundamental perceptions about markets and their role within them. While conventional investors focus on market efficiency or risk/reward relationships, system-level investors extend their beliefs to encompass social, financial, and environmental systems. CalPERS explicitly mentions addressing "systemic risks, such as climate change" in its beliefs, while the Washington State Investment Board acknowledges being "subject to complex and systemic global risks." Security selection extends beyond portfolio-level ESG integration to setting industry-wide standards based on problematic business models. Climate change concerns have prompted many investors to move from divesting specific fossil fuel companies to excluding entire industries. Conversely, some create concentrated investment programs targeting systematic change. Quebec's Caisse de depot et placement du Quebec exemplifies this approach with its $340 billion portfolio including $3.3 billion in Quebec private investments supporting local companies' growth, fostering innovation, and investing in infrastructure and renewable energy. Corporate engagement evolves from individual company discussions to system-wide influence. Hermes Investment Management extends engagement beyond individual cases to systemic issues, as demonstrated by their work confronting construction companies on human rights in Qatar (resulting in formal agreements protecting workers) and developing tools that enable managers to form holistic views of climate risks across portfolios. Manager selection builds upon conventional approaches that evaluate financial returns and investment style. System-level investors require managers to demonstrate policies with systemic implications, such as joining industry organizations that advocate for system-level considerations or showing documented impact track records. Aviva Investors maintains a "buy list" of managers that pass its ESG integration criteria, including engagement efforts, and surveys asset managers on ESG practices every two years to enhance industry best practices. Using water as an example system-level focus area, investors can extend traditional investment activities by adjusting investment beliefs statements to specify that water issues materially affect portfolios across asset classes; instructing active managers to include water risks in security valuations while promoting best practices; requiring real estate managers to monitor water usage while participating in standardized disclosure guideline development; having private equity managers report on water materiality and management policies; developing water-related proxy voting guidelines and engagement programs; and incorporating water expertise requirements in manager selection.

Chapter 6

Pioneering Advanced Techniques for System Change

Forward-looking investors are developing techniques specifically designed to address 21st century system-level challenges. These approaches represent the future of system-level investing, organized into three broad tactics: field building, investment enhancement, and opportunity generation. Field-building techniques pool resources for collective action, sharing knowledge about complex systems and aligning investors' goals with government and other policy influencers. Self-organization creates collaborative structures across the investment industry to address system challenges. The KL Felicitas Foundation exemplifies this approach by methodically building the impact investing field itself-supporting entrepreneurs through incubators, developing impact intermediaries like Sonen Capital and ImpactAssets, and creating Toniic, a global network of over 400 members from 25 countries managing $4.5 billion in impact investments. Interconnectedness focuses on increasing information flow about social, financial, and environmental systems. CalPERS exemplifies this through its Sustainable Investment Research Initiative (SIRI) Library, which compiles academic research, facilitates scholarly reviews, and maintains a public database of 1,900 studies on sustainable investing. Rather than hoarding these insights, CalPERS opened access to help other investors incorporate ESG considerations into their decision-making. Polity involves investors' intentional engagement in public policy debates to strengthen fundamental systems. Steve Waygood, chief responsible investment officer at Aviva Investors, exemplifies this approach with his work recommending capital market reforms: sustainability-oriented investment instruments, cost of capital adjustments reflecting sustainability performance, and equity investors exercising ownership rights for corporate sustainability. Introduced at a UN event in 2014, his work has influenced financing for the UN's Sustainable Development Goals and European Commission policy decisions. Investment-enhancement techniques use traditional investment activities to strengthen social, financial, or environmental systems. Standards setting involves investors establishing or supporting norms that discourage investments in harmful practices. Norway's sovereign wealth fund incorporates international standards into their process, divesting from tobacco, weapons, and companies causing severe environmental damage. The solutions approach intentionally identifies investments that both profit from and positively resolve pressing system-level challenges. Dutch pension fund manager PGGM exemplifies this approach, allocating billions to impact portfolios focused on climate change, food security, healthcare, and water. By 2018, PGGM had invested $17 billion of its $23.5 billion target in sustainable solutions, including $1.53 billion in climate initiatives (generating 11.6 million megawatt hours of renewable energy). Diversity of approach involves investors intentionally using multiple investment tools to address complex system-level concerns. New Zealand Superannuation exemplifies this through its comprehensive climate change strategy that includes transitioning equity portfolios to low-carbon investments, monitoring external managers for climate policy compliance, integrating ESG into investment beliefs, making direct investments in alternative energy and sustainable agriculture, sponsoring climate research, producing white papers, advocating among sovereign wealth peers, engaging corporations on climate policy, and collaborating with other institutional investors to amplify influence.

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Chapter 7

Measuring What Matters: Evaluating System Impact

How can investors distinguish between managers truly addressing major systemic challenges versus those simply insulating portfolios from harm or engaging in "greenwashing"? As investors increasingly adopt frameworks like the UN Sustainable Development Goals, they need practical impact measurement frameworks to evaluate genuine commitment to system-level solutions. Measuring system-level investments should start with "principles-focused evaluation"-examining whether principles are clear, meaningful, actionable, being followed, and leading to desired results. Four key assumptions form the foundation for evaluating managers' system-related impact: First, overall consistency is essential-managers can't undermine positive outcomes through contradictory investments or actions. Second, qualitative judgment is valid alongside quantitative metrics when addressing complex systemic challenges. Third, social and environmental systems have inherent worth that must be recognized despite difficulty in pricing this value. Fourth, balance is an ongoing challenge-between short and long term, private and public goods, self-interest and community interests, and portfolio versus system concerns. Six fundamental questions help identify which financial products, services, and asset managers are truly addressing major systemic challenges: 1. Do managers articulate formal beliefs about system-related challenges that are clear, actionable, and adaptable? 2. Can managers justify their focus on particular systemic challenges to ensure they're addressing broadly recognized issues? 3. Have managers selected and skillfully applied techniques designed to create system-level impact? 4. Do managers identify maximum leverage points within systems and understand how to influence them? 5. Do managers' efforts generate desirable outcomes at the system level, measured through progress toward defined milestones, balance among competing systemic elements, and quantification of specific outcomes? 6. Do managers contribute to positive paradigm shifts by aligning interests among key stakeholders? Due diligence for assessing investors' ability to manage system-level risks builds on conventional approaches but differs fundamentally. It requires shifts in how investors think and act-shifts necessitated by evolving social, financial, and environmental systems in the 21st century.

Chapter 8

Income Inequality: A Case Study in System-Level Investing

Income inequality has emerged as a system-level issue comparable to climate change but with more immediate effects. While some inequality can incentivize work and entrepreneurship, extreme disparities threaten economic stability and investment returns. IMF research shows that when a country's wealthiest 20% increase their income share by just 1%, GDP growth falls by 0.08% over five years, while increases for the poorest 20% boost growth by 0.38%. Global income inequality has worsened within countries while improving between countries. In recent decades, massive paradigm shifts in corporate and financial systems led to increased inequality through three key mechanisms: First, corporate "fissuring" has transformed standard business functions-like manufacturing, HR services, or janitorial work-into price-oriented services subcontracted to low-cost third-party providers. This approach, driven by cost reduction efforts and new technologies, has exacerbated an erosion in labor standards and worsened income inequality. Second, tying CEO compensation to stock performance has become standard practice to maximize shareholder value, leading to skyrocketing executive remuneration. Research shows a dramatic shift: from 1949-1953, about 77% of income growth went to the bottom 90% of the population, while from 2009-2015, this reversed with the top 10% getting approximately 75% of income growth-slowing economic growth as the wealthy have a lower propensity to consume. Third, corporations have grown increasingly sophisticated in using transfer pricing, tax havens, and tax breaks to reduce income taxes. Corporate taxes now make up a smaller share of GDP than in the past. This tax avoidance creates a disconnect between corporations and the governments they depend on for infrastructure, judicial systems, security, and social benefit programs. Restoring connectivity between long-term investors, corporations, employees, and government requires a paradigm shift away from short-term returns toward a system-level focus incorporating all stakeholders. Investors can bring about positive change through three key approaches: 1. Improving labor relations by setting clear expectations for fair treatment of direct and indirect workforces, collecting standardized data through initiatives like the Workforce Disclosure Initiative, and developing accountability standards like responsible contractor policies. 2. Encouraging appropriate taxation by advocating for equitable tax policies that help corporations avoid regulatory and reputational risks while supporting stable economies with thriving middle classes. 3. Pushing for more equitable CEO pay by supporting models that align management with broader stakeholder interests, such as ERAFP's standard limiting CEO compensation to 100 times the minimum salary. The key challenge is finding balance between financial returns and system strengthening. Investors must identify firms committed to positive employee relations, appropriate taxation and CEO compensation while maintaining profitability.

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Chapter 9

The Many Paths to System-Level Investing

Investors worldwide are expanding their conception of investment using various approaches to address systemic challenges. Six diverse investors exemplify different pathways to system-level investing: Japan's Government Pension Investment Fund (GPIF), one of the world's largest pension funds, identifies as a "universal owner" - so large it essentially "owns the economy." As a "super long-term investor" in a hundred-year pension scheme, GPIF recognizes its fate is tied to economic health, pushing external managers to minimize negative corporate externalities and promote sustainable market growth. The Church of England Pensions Board exemplifies the stewardship approach with its framework targeting "systemic or strategic interventions." After Vale mining company's dam failures killed over 250 people, the Board led an investor coalition demanding independent safety systems, resulting in new industry standards, dam closures, and victim compensation. Norway's Norges Bank Investment Management, managing over $1 trillion, exemplifies long-term value creation with its mission to "safeguard and build financial wealth for future generations." NBIM recognizes that companies' operations impact society with long-term financial consequences. It promotes international standards, identifies long-term opportunities, reduces unacceptable risks, and excludes companies for ethical or sustainability reasons. The KL Felicitas Foundation exemplifies impact investing, committing 99.5% of its $10 million portfolio to investments aligned with Sustainable Development Goals. Beyond direct investments, KLF aims for systemic change by strengthening the impact investment ecosystem through supporting social entrepreneurs, developing networks of impact investment intermediaries, and building a community of committed investors sharing data and best practices. Allianz demonstrates comprehensive ESG integration across its operations as asset owner, fund manager, and insurer. It applies ESG scoring to security selections, engages with laggards, excludes controversial weapons manufacturers, phases out coal investments, and has about 20% of its portfolio in "green" sustainability solutions. The Rockefeller Brothers Fund exemplifies standards setting by divesting from fossil fuels despite its origins in Standard Oil. By 2020, it had reduced its fossil fuel exposure from 6.6% to 0.9%. Whether through universal ownership, stewardship, long-term value creation, impact investing, ESG integration, or standards setting, each approach extends the concept that investment directly influences the world. Together, they demonstrate that investing can benefit society while improving efficiency and reducing risk.

Chapter 10

The Time for Action Is Now

The world faces unprecedented global risks that are increasingly difficult to reverse - from rapidly melting polar ice caps and accelerating species extinction to widening social inequities and increasingly fragile democracies. The COVID-19 pandemic starkly revealed our collective unpreparedness for complex systemic challenges, demonstrating how quickly global systems can be overwhelmed. The encouraging news is that investors now wield more influence than ever to manage these risks and create meaningful positive global impact, but the window for effective action is narrowing rapidly. Recent data shows that the top 500 institutional investors control over $100 trillion in assets - enough to fundamentally reshape global systems. These investors face both an unprecedented responsibility and opportunity to address systemic challenges through their investment decisions. The traditional approach of simply maximizing short-term returns while ignoring broader impacts is no longer viable in a world of interconnected risks. Investors need to follow six clear steps to successfully manage the complex, interconnected risks of the 21st century: 1. Set goals that recognize investments make systemic challenges either better or worse, positioning themselves on the positive side of that equation. This means explicitly acknowledging how investment decisions affect climate change, biodiversity, social equity, and other system-level issues in investment policies and mission statements. 2. Decide where to focus by determining which challenges merit a system-level approach using the four criteria: consensus (widespread agreement about the problem), relevance (material impact on investment returns), effectiveness (ability to influence outcomes), and uncertainty (level of risk and unpredictability). Climate change, for example, meets all four criteria as a priority focus area. 3. Allocate assets strategically, understanding the social and environmental purpose of each asset class and ensuring portfolios leverage the specific purposes for which each asset class was designed. For instance, venture capital can drive innovation in clean technology, while green bonds can fund specific environmental projects. 4. Apply investment tools by extending investment beliefs to include social and environmental systems, voting proxies for systemic influence, incorporating issue-specific criteria into active management, and creating new approaches for indexed funds. This includes developing comprehensive ESG integration frameworks and engaging with companies on systemic issues. 5. Leverage advanced techniques by collaborating with peers to pressure industries, supporting governmental regulations, aligning stakeholder interests, and creating new financial markets that solve challenges rather than just profit from them. Examples include joining investor coalitions like Climate Action 100+ or helping develop new markets for natural capital. 6. Evaluate results beyond quarterly reports, asking what managers have done to influence systems positively by evaluating their goals, actions, contributions to change, and the system's overall progress. This requires developing new metrics and frameworks for measuring system-level impact alongside financial returns. Despite implementation challenges, the pathway is clear. A new form of capitalism is emerging - driven by vast information flows, sophisticated data science tools, and more nuanced understanding of systemic risks and opportunities. This evolution makes the financial system better equipped to generate the just and sustainable economy our planet needs to survive. Major institutional investors are already demonstrating how this approach can work, from Norway's sovereign wealth fund excluding coal investments to Japan's GPIF integrating the SDGs across its portfolio. Redirecting financial strategies to drive systems change is not just an option; it's the only viable path forward for 21st century investing. The alternative - continuing with business as usual while systemic risks multiply - poses an existential threat to both investment returns and planetary wellbeing.

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Key Themes in 21st Century Investing

system-level investing
systemic risk management
modern portfolio theory
sustainable finance strategy
market beta optimization

Quotes from 21st Century Investing

Conventional investment approaches are dangerously inadequate for our interconnected world.
This isn't just idealism-it's financial pragmatism.
By strengthening the systems that support markets, system-level investors aim to enhance returns for everyone.
Not every social or environmental issue warrants a system-level approach.
The wider this consensus, the stronger the case for treating it as a common good.

Characters in 21st Century Investing

William BurckartCo-author and expert on system-level investing
Steven D. LydenbergCo-author and pioneer in sustainable investment
Larry FinkCEO of BlackRock

About the Author

William Burckart and Steve Lydenberg, authors of 21st Century Investing: Redirecting Financial Strategies to Drive Systems Change, are pioneering voices in sustainable finance and systemic risk management.

Burckart is the CEO of The Investment Integration Project (TIIP) and an Adjunct Professor at Columbia University’s School of International and Public Affairs. He combines academic rigor with practical insights from advising institutions on ESG integration. Lydenberg is a Partner at Domini Impact Investments and co-creator of the groundbreaking Domini 400 Social Index. He brings five decades of expertise in corporate accountability and impact measurement. Their work at TIIP has shaped strategies for institutional investors seeking to align portfolios with societal resilience.

The book distills their shared vision for transitioning from conventional to system-level investing, emphasizing environmental stability and equitable growth. Burckart’s Nasdaq column on LGBTQ+ investment inclusion and Lydenberg’s foundational research at KLD Analytics further underscore their authority.

Praised by leaders at CalSTRS and Oxford Saïd Business School, 21st Century Investing has become a critical resource for funds and academics navigating 21st-century financial challenges. Published by Berrett-Koehler in 2021, it bridges Wall Street practices with global sustainability goals.

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201

"It is great for me to learn something from the book without reading it."

@OojasSalunke

"The themed book list podcasts help me connect ideas across authors—like a guided audio journey."

@Leo, Law Student, UPenn

483

"Makes me feel smarter every time before going to work"

@Cashflowbubu

"Instead of endless scrolling, I just hit play on BeFreed. It saves me so much time."

@Moemenn

"I never knew where to start with nonfiction—BeFreed’s book lists turned into podcasts gave me a clear path."

@Chloe, Solo founder, LA

117

"Perfect balance between learning and entertainment. Finished ‘Thinking, Fast and Slow’ on my commute this week."

@Raaaaaachelw

"Crazy how much I learned while walking the dog. BeFreed = small habits → big gains."

@Matt, YC alum

108

"Reading used to feel like a chore. Now it’s just part of my lifestyle."

@Erin, Investment Banking Associate , NYC

254

"Feels effortless compared to reading. I’ve finished 6 books this month already."

@djmikemoore

"BeFreed turned my guilty doomscrolling into something that feels productive and inspiring."

@Pitiful

4.5K

"BeFreed turned my commute into learning time. 20-min podcasts are perfect for finishing books I never had time for."

@SofiaP

"BeFreed replaced my podcast queue. Imagine Spotify for books — that’s it. 🙌"

@Jaded_Falcon

201

"It is great for me to learn something from the book without reading it."

@OojasSalunke

"The themed book list podcasts help me connect ideas across authors—like a guided audio journey."

@Leo, Law Student, UPenn

483

"Makes me feel smarter every time before going to work"

@Cashflowbubu

"Instead of endless scrolling, I just hit play on BeFreed. It saves me so much time."

@Moemenn

"I never knew where to start with nonfiction—BeFreed’s book lists turned into podcasts gave me a clear path."

@Chloe, Solo founder, LA

117

"Perfect balance between learning and entertainment. Finished ‘Thinking, Fast and Slow’ on my commute this week."

@Raaaaaachelw

"Crazy how much I learned while walking the dog. BeFreed = small habits → big gains."

@Matt, YC alum

108

"Reading used to feel like a chore. Now it’s just part of my lifestyle."

@Erin, Investment Banking Associate , NYC

254

"Feels effortless compared to reading. I’ve finished 6 books this month already."

@djmikemoore

"BeFreed turned my guilty doomscrolling into something that feels productive and inspiring."

@Pitiful

4.5K

"BeFreed turned my commute into learning time. 20-min podcasts are perfect for finishing books I never had time for."

@SofiaP

"BeFreed replaced my podcast queue. Imagine Spotify for books — that’s it. 🙌"

@Jaded_Falcon

201

"It is great for me to learn something from the book without reading it."

@OojasSalunke

"The themed book list podcasts help me connect ideas across authors—like a guided audio journey."

@Leo, Law Student, UPenn

483

"Makes me feel smarter every time before going to work"

@Cashflowbubu

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Chapter 10

21st Century Investing

OverviewOverview of 21st Century Investing

One book. Many ways to hear it.

The Investment Revolution We Need Now

Beyond Returns: The New Investment Paradigm

See every word as you hear it

Identifying True Systemic Challenges

Strategic Asset Allocation for System Impact

Get more out of 21st Century Investing

Extending Traditional Investment Tools

Pioneering Advanced Techniques for System Change

See every word as you hear it

Measuring What Matters: Evaluating System Impact

Income Inequality: A Case Study in System-Level Investing

Get more out of 21st Century Investing

The Many Paths to System-Level Investing

The Time for Action Is Now

You made it to the end of 21st Century Investing

Key Themes in 21st Century Investing

Quotes from 21st Century Investing

Characters in 21st Century Investing

About the Author

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1,000,000+ curious minds.

1,000,000+ curious minds.

One book. Many ways to hear it.

The Investment Revolution We Need Now

Beyond Returns: The New Investment Paradigm

See every word as you hear it

Identifying True Systemic Challenges

Strategic Asset Allocation for System Impact

Get more out of 21st Century Investing

Extending Traditional Investment Tools

Pioneering Advanced Techniques for System Change

See every word as you hear it

Measuring What Matters: Evaluating System Impact

Income Inequality: A Case Study in System-Level Investing

Get more out of 21st Century Investing

The Many Paths to System-Level Investing

The Time for Action Is Now

You made it to the end of 21st Century Investing

Users also liked

Discover more

Overview of 21st Century Investing