Tag Archives: Investment

From Principles to Profits: Investor’s Priorities Shifting in a Volatile World.

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Lauri Twomey

Short-Term Financial Gain is Resuming Priority Amongst Investors


Over the last decade, there has been an ongoing emphasis placed on sustainable investing. Increased awareness of social inequality, the climate crisis, corporate governance scandals, and advancements in digital technology have each encouraged various individuals to question where to invest their money. Currently Europe holds 85% of global sustainable funds’ net assets. This form of investing for many individuals stemmed from moral concern relating to climate change and emphasizing investing in the future, not necessarily seeking financial gain.


However, in recent times investor’s perspectives have changed. Short term financial gain is resuming the priority in investors’ portfolios. In 2021, there was a surge of sustainable investors, data from Morningstar showed sustainable investing fund inflows which also include ESG products hit 645 billion globally, a quarter of all inflows. This figure has since dropped to 36 billion from an overall 1.5 trillion in 2024. Banks are rethinking their positions in sustainable development.

Did the Corporations Across the World Ever Believe in a Sustainable Future or Did They Utilize Sustainability as a Trend to Promote Their Business?


It is evident that banks have lost faith, with portfolio managers adjusting their previous commitments of divesting from fossil fuel companies, in response to recent political issues that have put financial gain back to top priority. But sustainable investing was never a profit maximizing strategy. Banks across the world were including sustainability as one of their banks core values, investing in the future of the planet. The purpose was not financial gain for a lot of people, it was looking at the detrimental impacts that climate change would cause, with severe weather incidents becoming more prevalent and seeking ways to combat these issues .


However, after the recent US election and the current ongoing conflicts in Ukraine and Palestine, investors are back to seeking short term gains, in order to maintain competitiveness. Trump removing the US from the Paris Climate Change Agreement has influenced other dominant parties to also divert their interests in investing in the future with major financial institutions such as Blackrock, a company that once praised the ESG investing movement, to withdraw from UN sponsored climate initiatives. Trump’s administration has severely impacted climate tech through encouraging the “anti-climate narrative”, which focuses on the short term financial losses of sustainability rather than looking at how it can enhance competitiveness in the future through innovation.

The Knock-On Effect of the European Union’s Flagship Green Deal on Environment Policy


The recent Green Deal environmental policy has also impacted the EU, as lawmakers discuss adjusting their strategies regarding future developments on climate accounting rules noted in the aforementioned flagship deal, as they worry that implementing these strict regulations will reduce their competitiveness with the US and China. Two major landmark policies being reviewed are the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive. These laws were some of the first signs of legislation requiring companies to take accountability for their actions and prioritize the sustainable transition through accounting practices.

However, many companies argue that the cost of implementing these reporting requirements will affect their companies processes. Since the start of the year, countries such as France and Germany are seeking help to withhold on these sustainability reporting rules. Despite this, many groups such as the European Sustainable Investment Forum highlighted that these rules will aid investors when it comes to being able to seek out opportunities, managing risk and direct capital to an equitable and sustainable economy through encouraging transparency amongst corporations. These laws will help sustainable research, analytics and increase individual awareness on what types of businesses they are contributing to.


At the moment it’s difficult to focus on the financial aspect of sustainable investing, due to issues with monetizing climate impacts. There are many flaws in measuring and reporting , as the ESG ratings of companies vary depending on which rating agency they use, thus drawing attention to the inconsistency with the process, which results in conflicting data when investors are looking at sustainable investing. Time and resources are needed to combat these issues, but now these resources are being diverted elsewhere.

Future Demand for Sustainable Practices is Still Anticipated to Grow in the Future


Despite all of this, consumer demand for combating the climate crisis is continuing to grow. A report by Bain & Co. highlighted that due to personal experiences regarding extreme weather events, 60% of consumers are more concerned about climate change now than they were two years ago, with prime events such as Hurricane Milton and Hurricane Helen accounting for $500 billion in economic losses. The issue is that the economic losses that result from climate change will only increase. Since 2000, climate related issues have already caused 3.6 trillion in damages and once the tipping point of the planetary boundaries are crossed, there is no backtracking. The prime goal was to be resilient in the future, as managing director at Boston Consulting group Sylvain Seotarata said “if you think of the world in which we operate, there’s a high degree of uncertainty and high degree of volatility” then “in that context, it is essential to ensure that your company is able to handle these uncertainties, this volatility”, that is what resilience meant for her, explaining how long term competitiveness aligns with protecting against physical risk.


Another core group that are increasingly aware of the climate crisis is Gen Z (born between 1997-2012), a report by Bain found that they are willing to pay more for goods and services that align with their sustainability beliefs. With more and more universities educating their students on the impact of climate change and new sustainability focused courses being implemented, (particularly within business schools), sustainability demand is only going to grow. Within Trinity College Dublin, sustainable business practices are being taught to students and previous modules are being adjusted incorporating sustainability into investment modules and marketing. Many other universities are adopting similar approaches.


The world’s major leaders have neglected their responsibility to prevent the severity of the climate crisis, cutting back on regulations and influencing the “anti-climate narrative”. Banks have also highlighted to us that they never had much faith in the sustainable transition, creating mistrust among clients. While sustainable finance has many flaws in its practices, such as poor reporting procedures, the only way to combat this is investment and further research. Now is the time to push for innovation, and with significant developments in AI and other new age technologies we are now more capable than ever to help tackle key environmental issues. But if sustainable investing is ever really going to become part of every investor’s portfolio in the future, the banks must believe in it themselves.

The Crypto Ecosystem: How Blockchain, DeFi, and Emerging Tech Are Reshaping Finance

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Rachel Ranjith

In a rapidly evolving digital world, the advent of cryptocurrencies, blockchain technology and decentralised finance is reshaping the global financial landscape. These technologies aim to decentralise power, with the intent of promising financial inclusion and accessibility, challenging traditional banking norms. Yet, they also raise pressing questions about security, scalability and sustainability, especially as emerging technologies become potential disruptors. 

To demystify the concepts surrounding crypto and make it more approachable, Dr. Martha O’Hagan Luff of the Business School and Dr. Hitesh Tewari of the School of Computer Science and Statistics were interviewed to learn more about the future of cryptocurrency. 

The Building Blocks: Crypto, Blockchain, and DeFi

Cryptocurrencies like Bitcoin and Ethereum represent a shift from centralised money controlled by governments and banks to decentralised digital assets. Built on blockchain technology, they allow for peer-to-peer transactions without the need for traditional financial intermediaries, offering greater transparency and user control.

Blockchain is the backbone of cryptocurrencies: a decentralised, distributed ledger that securely records transactions. Its immutability and transparency have made it a cornerstone of digital finance. Beyond powering cryptocurrencies, it also enables the smart contracts – self-executing code for certain banking procedures – that DeFi platforms rely on.

Decentralised Finance (DeFi) leverages blockchain to recreate traditional financial services – such as lending, borrowing and trading – without intermediaries. By using blockchain and smart contracts, these services are automated, making them faster, more transparent and accessible. Together, these components form a symbiotic network; cryptocurrencies operate as the medium of exchange, blockchain serves as the infrastructure and DeFi platforms utilise both to deliver financial services in a decentralised, trustless environment. 

A New Era of Financial Services

Traditional banking systems are built on centralised control by governments and financial institutions. This structure provides stability, insurance and regulation, but it also has its downsides. High fees, slow processes and limited access for millions of unbanked people worldwide are a few notable flaws. DeFi addresses these very issues by offering accessibility to anyone with an internet connection, it offers transparency, lower costs and user control. Since it’s automated via smart contracts, and operates without the need for trust in centralised institutions, it has evoked a lot of interest in the public. However, the lack of regulation and protections in DeFi means higher risks, such as losing funds to hacks or bugs in the system, as well as the volatility of crypto assets.

As traditional financial institutions explore blockchain technology- like JPMorgan’s use of blockchain for settlements- it’s unclear whether DeFi will coexist within traditional banking or replace it entirely. The likely outcome may be a hybrid system, combining the best of both worlds. There is a certain convenience to the efficiency of Smart Contracts that is inarguably positive. However, the reassurance and reliability of traditional banking cannot be easily replaced. 

Another possibility is the rise of CBDCs – Central Bank Digital Currencies. This was proposed as a potential solution to the crypto ecosystem. The proponents for this technology argue that the convenience of crypto is preserved while also solving the issue of unregulated currencies. However, a deeper look into this idea provides a number of disturbing concerns. If CBDCs become legalised tender, many transactions become more traceable due to regulatory requirements. The extent of this traceability can vary based on the design choices made by central banks, however, this contrasts with the ideology of cryptocurrencies. Pro-CBDC proponents often argue, “why worry if you have nothing to hide?” But, in an era of increasing concern for digital privacy, it might be safe to say CBDCs may not become popular.

Quantum Computing: Threat or Opportunity?

Quantum computing is a revolutionary leap in computing that solves problems far beyond traditional computational powers that, unfortunately, threaten the crypto environment. It has the potential to revolutionise many industries, but due to its capability of solving complex problems exponentially faster, it also poses a serious threat to blockchain technology. Since blockchain security relies on cryptography and cryptographic algorithms, quantum computers can eventually break past these walls. For example, private keys used to authorise crypto transactions could be decrypted, exposinging assets to theft. This is understandably a serious compromise of the integrity of blockchain networks.

Researchers are already developing quantum-resistant cryptography to safeguard these systems. Post-quantum encryption and hybrid cryptographic models are widely being discussed in the current tech climate, with a widespread understanding of a need for preemptive measures. While the threat is real, quantum computing also presents opportunities. From optimising scalability, efficiency and speed to the implications of a transparent ledger for business transactions, the blockchain ecosystem definitely has significant future applications.

There are parallels to be drawn between the current rise in popularity of crypto and the 90s Dot-Com Bubble. The internet’s commercial potential sparked an unprecedented wave of investment in tech companies in the late 1990s and the promise of connectivity and innovation drove massive valuations. However, when the market realised that many dot-com companies lacked profitability or sustainable models, stock prices plummeted, wiping out trillions of dollars in value. Similarly, quantum breakthroughs could trigger a re-evaluation of crypto projects, exposing vulnerabilities and weeding out weaker systems.

What is Self-Sovereign Identity (SSI)?

Self-Sovereign Identity (SSI) enables individuals to control their own digital identity, a key element while discussing DeFi platforms. Instead of relying on centralised services like banks or governments, users manage their own identity data. Blockchain’s decentralised nature makes it an ideal platform for implementing SSI, allowing users to securely store their identity data without ceding control to intermediaries. 

SSI has the potential to transform traditional Know Your Customer (KYC) processes in the crypto ecosystem by allowing users to control and share only essential data without relying on centralized institutions. While KYC regulations are currently enforced in many crypto transactions, SSI could reduce the burden of sharing sensitive information by enabling pre-verified credentials. Users could prove their creditworthiness or reputation without exposing sensitive personal information while also reducing the hassle of procuring documents from multiple institutions for any formal procedure.

However, challenges remain, including the complexity of implementing SSI on a large scale and ensuring interoperability between different systems. Additionally, the inherent lack of trustworthiness that comes with self-identification is certainly a significant obstruction to its practical application. Overcoming these hurdles will be crucial for its widespread implementation.

The Future of Crypto

Cryptocurrencies, blockchain and DeFi represent an exciting frontier in global finance and technology, offering unprecedented opportunities for innovation, accessibility and autonomy. However, their sustainability depends on addressing inherent challenges and should be approached with caution considering past trends wherein massive bubbles in the financial market often burst when oversaturated with interest. 

Meanwhile, as traditional institutions adapt to this new paradigm, the question remains: will DeFi become the dominant financial system, or will it integrate with existing frameworks to create a hybrid future? Emerging technologies could either disrupt or enhance this ecosystem and whether this decentralised world will coexist with traditional banking or replace it entirely remains to be seen. What’s clear is that the way we think about money and finance is evolving, and the journey has only just begun.

Could SHEIN Become London’s Biggest IPO?

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Chloé Asconi-Feldman

In November 2023, SHEIN, the controversial fast-fashion Singapore-based brand filed an initial public offering (IPO). While initially planning on listing shares in New York, the UK chancellor has recently met with the SHEIN executive chair and it is now rumoured that SHEIN will become a listing in London. What is the reason for this sudden change, and what does this mean for LSE?

Why London?

The switch from New York to London may be in part due to the unlikeliness that the US Securities and Exchange Commission would approve its IPO. Despite the great efforts the company has made to shift its reputation in Washington and beyond, by spending millions of dollars on lobbying and meeting privately with lawmakers, it is predicted that the US will not approve its IPO. This is because of Shein’s supply chain and its ties to the Chinese Communist Party; Senator Marco Rubio stated in a letter to the Securities and Exchange Commission (SEC) that they should enhance disclosures when dealing with SHEIN compared to the protocol with an average company, and urged them to protect U.S. investors by blocking SHEIN’s offer. 

Founded in China, SHEIN has been accused of using forced labour to produce their clothing where costs start as low as a couple of dollars for a t-shirt. With manufacturing focused in the Xinjiang region, the company continues to deny these allegations, claiming they have a zero-tolerance policy for forced labour. Although the company is considering Hong Kong and Singapore as potential markets, the benefits of a Western stock listing in London would position the company differently in the eyes of investors, implying higher levels of transparency and corporate governance. 

Economic Impact: SHEIN Revitalising the LSE?

According to data compiled by Bloomberg, last year the UK raised about $1 billion through IPOs which has been the lowest level in decades. Struggling to stay afloat as a global financial centre after leaving the European Union, the majority of the companies that have come to market are trading below their IPO prices. A major cause for this is due to companies leaving the London Stock Exchange in favour of the Nasdaq in New York for its lower listing fees and constraints. Due to this decline, there have been developing reforms to boost the UK as a destination for listing, making it easier for companies to list more quickly, and in the case of SHEIN, go through less scrutiny than they would in New York. Despite the steady decline, there is still significant value in the market, having a wave of private equity takeovers of UK-listed companies. 

If SHEIN were to go ahead in London, this could be huge for the city and the country’s standing as a global financial centre. Such a listing could even place the IPO in record books, as Bloomberg reports that the company would raise more than $10.7 billion by selling shares to the public, distinguishing it as the biggest British IPO ever. With such a title, this could profit both London as a financial centre and SHEIN as a company, increasing the amount of companies that may choose to list in London by augmenting confidence in non-Western firms looking to enter new markets.

Why are American Investors Buying European Football Clubs?

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The FSG have announced that they are in talks to sell Liverpool football club to a U.S. based investor at a profit of around $4 billion. Earlier this year the Todd Boehly Consortium acquired Chelsea football club, Mr.Boehly said that ‘football is the biggest sport in the world’, he has echoed the American sentiment that football’s commercial value has been underexploited. These stories of American investors in football are becoming more common each year. The American market view football clubs as media companies being run inefficiently and available for purchase at a bargain.

Perhaps the best example of this opportunism is the Fenway sports group acquisition of Liverpool. FSG paid £300 million pounds ($490 million inflation adjusted) for Liverpool in 2010, while other premier league clubs were run in a traditional way, FSG adopted a data-driven model inspired by their success in American sports. After 12 years, FSG have announced that they are willing to sell Liverpool with Forbes valuing the club at $4.45 billion, which would be a 20% annualised return on their original investment. This profitability is mirrored by other owners such as the Glazer family who have made an 8% annualised return over 17 years as well as extracting $1.1 billion from Manchester United.

Football teams are viewed by American investors as underperforming media corporations. It is easy to see why they think this when you compare the NFL to the Premier league. Despite having a smaller target market, the NFL claims that 6.16 billion hours of NFL content was consumed just last year, Statista reports that the NFL reaches revenue of $17.2 billion from this content. In comparison, the premier leagues viewers consumed just 1 billion hours of content and generated just $6.2 billion. American investors believe that they can boost these revenue figures and get a huge return on their investments.

There is also a lower barrier to entry with European football clubs when compared to the American sports industry. While joining the NFL will cost an investor hundreds of millions of dollars, they may purchase a mid-table premier league team for a reasonable price. There is also the option of taking a lower league side through promotion; this option can produce massive returns on investment. This option does not exist in the American sports scene where promotion and relegation do not exist.

However, this does present a problem for American investors. The threat of relegation means that their investment could be massively devalued. It also makes the leagues more competitive, in American leagues there is no threat of relegation so the main focus of sports teams is to make money. While in football, regardless of how profitable a team is, their value will still drop dramatically if they are demoted.

Despite this risk, American investors still believe that they are entering an under-valued asset class and with streaming services entering the sports entertainment industry it seems the potential for growth, and therefore American interest, is set to continue.

Training is an investment, not an expense!

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By Neha Verma

Training is an integral part of any organization; it equips the employees with skills required to perform the job. Every organization invests in training their employees that are responsible for giving results. Most organizations/businesses consider training as an expense when it is actually an investment.

There are numerous reasons to invest in training, like; improved quality or in other words reduction in errors or defects, enhanced productivity, increased motivation, helps in retaining the talent pool, capacity building, groom the leaders, etc. Training helps in building capacity within an organization and investing in people is vital as this is the workforce which can bring excellent profits to your business.

In the times of economic crisis, organization often control its budget by cutting down on non-core or non-billable activities, and unfortunately training is one of such activities – if not cancelled completely. However, training can help both employees and organizations in such challenging situations. With the advancement of technology and globalization, there are various methods to reduce the cost of training whilst maintain its effectiveness. Virtual classes, use of instructional system designs, video conferencing and other technological improvements have helped revamp the training making it cost effective. In this era of globalization, where organizations are spread across the globe, such advancement in training delivery techniques are highly cost effective and have reduced the need of face to face training.

Training should be designed to focus on immediate business need and to cater the various talent pool bespoke training or curriculum is the preferred way of keeping at pace with the organizational changes and needs. Training should be pragmatic in approach and directly applicable to day to day activities which will help organizations to measure ROI. An efficiently trained staff with improved skill set will have high productivity and quality, efficient at their job whilst feeling recognized and valued by management.

As leaders and managers, you are responsible for the success of your organization, and developing your people to increases your chance of success. For any organization, people are one of the biggest investments and they should not be left to rust.