Systemic investing offers a new paradigm – one that begins with a shared vision and builds the partnerships needed to bring it to life. A global community is now testing what this approach looks like in practice.
Imagine investments that make our urban rivers swimmable, build community resilience to disasters, and foster economies of care and creativity.
Systemic investing begins with envisioning how investment can enable these bold visions. A global community is forming that is ready to put the principles of systemic investing into action.
Developed by the Transformational Capital Initiative, the strategic paradigm of systems investing is straightforward: invest millions, connect billions, and inspire trillions. The challenge lies in shifting from the dominant investment logic of “invest, compete, win” mindset to one that invests, connects, and inspires.
Join us to test what this looks like in practice.
Why is systemic investing needed?
To drive systemic change, our investment approach must align with how change occurs in the real, complex world. Current state investment logic tends to treat the world as a machine to be optimised, assuming parts fit together efficiently and can be controlled in isolation. Systemic investing involves implementing a new financial paradigm that recognises the interconnectedness of our natural and human systems, understanding feedback loops, multi-order impacts, and taking responsibility for externalities to achieve a safe, resilient, and just future.
Three big ideas
Activate a new investment approach that is:
1. Guided by a vision for change
Systemic Investment is guided by a long-term, transformational vision. Investors recognise that progress may not follow a straight path, and embrace prototyping, learning, and refinement to reduce risks as they work towards a shared vision. Valuation considers both the combined value of a portfolio of initiatives as well the economic growth and the social and environmental benefits that happen with communities thrive.
2. Enabled through partnerships and collaboration
Achieving the systemic change requires novel partnerships across sectors, including government, businesses, and communities. Funding architecture must value this collaboration. This includes emphasis of the relationship between capital holders and change-makers in a true and creative partnership.
3. Done in partnership with place-based organisations driving change
Success measured by real-world improvement brings focus to the opportunity presented by place-based change and the value of partnerships and collaboration as a fundamental enabler of change. Communities and regions are a particularly useful scale to act and test new investment strategies for change. It is at this scale where stressors and crises are felt, consequences can be seen and experienced, and integrations of new pathways are shaped. Hence it is by design that current systemic investment leaders are looking to partner with place-based organisations aimed at driving systems change.
Systemic Investment approach
Partner with Places
Identify places and ambitious challenges where there is a demand for systemic investing to unlock change.
Articulate the vision
- Apply systems tools to describe the nature of the shifts from current state to future state that underpin this vision.
- Integrate social, environmental, and cultural values, especially from indigenous perspectives.
Develop an investment architecture
- Design investment architecture: Integrate systems thinking with finance to encourage investments that support long-term, systemic change.
- Create narratives and frameworks on the mismatch between available capital and the quality of investment needed for systemic action.
- Design financial mechanisms that could support systemic investment.
- Identify leverage points and strategies to attract long-term investment.
Aligning the investment architecture with the social architecture
- Design the stakeholder engagement process that delivers systemic investing.
- Build capacity for deep partnerships and multi-benefit outcomes.
- Engage to support the strategic multi-dimensional partnerships that integrate diverse stakeholders and resources.
- Support Collaborative Efforts: Prioritise the partnerships across communities, businesses, and governments.
How does Climate-KIC Australia work in this space?
Climate-KIC Australia acts as a trusted, independent connector that works with organisation to bridge these four stages. We serve as a bridge between place-based organisations and those with a clear vision and portfolio of projects and funding through establishing a funding and social architecture for projects.
We work at local, regional, national, and global levels to provide the connections needed to unlock systemic finance.