Ketan Patel and Laurent Ramsey: Why the Global Energy Transition Requires Active Engagement Secondary – Force For Good
Force For Good Chairman, Ketan Patel interviews Pictet Asset Management CEO on Risk, Global Volatility, and the Shift to Responsible Capitalism
In a high-level dialogue at the UN World Investment Forum, Laurent Ramsey, CEO of Pictet Asset Management, outlined a vision for the future of finance that transcends traditional ESG metrics. Ramsey argued that in an era of unprecedented global volatility, sustainable investing is no longer a “niche” product—it is a core fiduciary duty.
The Interrelated Nature of Global Risks Ramsey highlighted that the “S” and “G” of ESG have been brought into sharp focus by recent health and geopolitical crises, such as the COVID-19 pandemic and the war in Ukraine. However, he maintained that the Environment (E) remains the most critical challenge.
“Without a well-functioning planet, we won’t have a well-functioning economy or society,” Ramsey noted. He emphasized that all global risks are now interrelated, meaning investors must adopt a systemic view to protect long-term capital.
From Exclusion to Engagement: The “Garbage” Analogy One of the most striking points of the interview was Ramsey’s critique of simple divestment. He famously compared exclusion to “throwing your garbage on your neighbor’s lawn,” noting that selling a stock simply passes it to a short-term speculator without solving the underlying environmental issue.
Instead, Pictet is doubling down on Active Engagement. Ramsey believes that real impact occurs when investors stay at the table with the world’s biggest polluters to force a strategic transition toward better practices.
Execution Challenges in a Regenerative Economy Ramsey also discussed the shift toward a Regenerative Economy—one that goes beyond “Net Zero” to actively restore what has been destroyed. This requires:
Regulatory Support: Aligning private capital with government mandates like the European Green Deal.
Better Data: Moving past opaque practices to transparent, market-sanctioned ESG information.
Long-Term Mindsets: Avoiding the pressure of quarterly earnings to focus on the next 10 to 20 years.
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