How can we unlock capital in service of regeneration?

Systemic Investment

Systemic Investment
Context

Barriers in the System

There is growing global momentum towards the urgent need for systemic change to address climate, ecological and social crises. However, financial flows, and the purpose of the financial system fundamentally, remain misaligned with the scale and depth of transformation required. While many sustainable finance initiatives exist, the dominant financial paradigm continues to detach financial systems from the real economy, overlooking the true risks we face, the scale of change needed and the opportunities for investment in system-level interventions.

As a result, the flow of capital into systemic and adaptive interventions remains limited and fragmented. Transformation within the financial sector is necessary to create the coherence and scale required to enable people and planet to thrive over the long term.

Our response

What We're Doing

Systemic Investment responds to these entrenched conditions, sitting at the intersection of finance, systems thinking and place. It draws on multiple levers of change, asset classes and points of intervention, in collaboration with a diverse set of actors.

This work is an open invitation to co-create transitional financial infrastructure and demonstrate what systemic investment looks like in practice. It is underpinned by an exploration of the fundamental purpose of the economy and financial sector, but is equally focused on the creation of new financial instruments in place, as well as the infrastructure and capabilities required for these to take hold and scale in Melbourne and beyond.

What we're asking

WHAT IS

To what extent do capital flows currently serve social, environmental and economic wellbeing?

WHAT COULD BE

What could it look like for financial and capital systems to be in service of regeneration in place?

HOW TO

How might we develop investment paradigms, models and capability to orient capital to regeneration in place?

learning portfolio

Overall Portfolio

Our work in Systemic Investment is made up of a Learning Portfolio that includes diverse finance and capital projects responsive to our Earthshots’ needs. At the same time, we are exploring what is required to shift paradigms and build capability across capital systems, in and beyond our city. The Learning Portfolio responds to interconnected themes, each underpinned by supporting how-to learning questions.

Projects

Ecosystem Development & Capital Coordination

For the scale of change required over the long term, we need more than just pockets of capital activated in service of regeneration. This theme focuses on strengthening ecosystems of actors and building new markets that embed regenerative aspirations into their core objectives. Our learning questions within this theme include:

  • How might we support the establishment of an ecosystem that develops the future financial infrastructure and markets that centre regeneration?
  • How might we mature and equip ecosystems of actors with approaches for collective decision-making and coordinated resource distribution?

Investment Infrastructure & Mechanisms

Unlocking capital in service of regeneration can’t just happen in the abstract - it requires real investment structures and instruments, including creative use of existing mechanisms and development of new ones. This theme focuses on developing, implementing and learning from innovative ways to direct capital to the health of our city’s communities and critical systems. Our learning questions within this theme include:

  • How might we develop new investment infrastructure that can facilitate systemic investment in place?
  • How might we create coordinated financing mechanisms that support the flow of capital in place and that centre alternative forms of value creation?

Investment Purpose & Value

Any systemic change to our financial system requires a fundamental shift in how we understand the purpose of finance and the economy, as well as more holistic definitions of what we value in financial markets. This theme focuses on these core definitional elements and how they can be reoriented to redirect capital flows. Our learning questions within this theme include:

  • How might we shift dominant paradigms about the purpose of our economic and financial systems towards regeneration?
  • How might we redefine and measure value, returns and impact to incorporate holistic social, ecological and economic outcomes?
Large crowd at the City Portrait for Greater Melbourne launch in a heritage brick venue with purple lighting