Four For Friday | March 28, 2025
LF166 | Systems Investing Report, Impact Readiness Levels, P&G AI study, Survival Paradox + Bonus 'ethics & AI' organizations
Welcome to this week’s Four For Friday. Four things that have piqued my interest this week, together with a bonus: AI Tip of The Week.
Systems Investing Report by CSP Zurich
In the margins of the recent systems investing summit in London, the Zurich-based Center for Sustainable Finance and Private Wealth released this report on the state of the space. It provides a useful overview for those interested in the concept, in particular traditional investors. Three differences of this approach compared to traditional money managers:
Leverage Points Matter: Instead of solely chasing short-term returns, systemic investors identify critical leverage points where their capital can drive outsize change.
Collaborate for Impact: Systemic investing is inherently collaborative. Platforms like TWIST and MIT’s Sustainability Initiative connect investors, policymakers, and innovators to create strategic portfolios of aligned challenges.
Rethink Portfolio Construction: Moving beyond traditional risk-return models, systemic investors prioritize “synergies-return” — investments that reinforce each other for greater long-term impact.
Here’s an overview of what a systems investing program involves:
This shows the combination of investment vehicles and philanthropic funds within a strategic portfolio. External factors like subsidies, tax incentives, and insurance can improve overall impact and financial sustainability; a very different set of tools compared to traditional investing.
The So What? Look for more systemic funds emerge as a way to combine government, foundation and private capital to address society’s systemic failures.
Impact Levels
Similar to how ‘technology readiness levels’ help establish the maturity of a tech project, Impact Shakers Ventures has introduced ‘Impact Readiness Levels’ (IRLs), to help early-stage startups embed impact into their development.
More than just ‘scale’, the traditional measure of startup success, this nine-tier framework tracks progress across impact model, evidence, and governance dimensions.
The approach aligns with agile startup thinking, allowing founders to iterate their impact impact strategies alongside their business models. Here’s a summary of the tiers:
Impact intention is clear - Vision addressing societal/environmental challenge.
Impact model is articulated - Theory of change explicitly defined.
Core impact mechanics validated - Testing shows results with MVP.
Impact model developed - Refined approach with monitoring capabilities.
Impact is validated - Demonstrated outcomes in target segments.
Impact is repeatable - Consistent results across diverse contexts.
Growth is system-aware - Priorities target transformative system change.
Product-impact-market fit - Scale achieved with standardized measurement.
Impact integrated long-term - Governance ensures preservation after exit.
The So What? As climate continues to collapse, and despite (or because of) current US government actions, I expect to see a resurgence of thoughtful models like this that connect profit with purpose.
P&G Study: Robot Teammates
This latest HBS research has been doing the rounds; it shows an impressive positive impact of AI as a teammate to support collaboration. 776 P&G innovation execs were studied, and those teams using AI outperformed those not using it. Teams with AI were 3x more likely to produce top-tier solutions. AI also democratized expertise and broke down silos - with commercial specialists producing technically balanced solutions comparable to R&D experts. Interestingly, users reported higher positive emotions and reduced negative ones, suggesting AI delivers a range of human-perceived value, rather than just being a tool.
The So What? Last year AI supercharged individuals. This year AI is supercharging teams.
Why we’re silent in the face of collapse
Can Geoffrey Moore’s Crossing the Chasm help with climate activation strategies? This piece suggests that quiet cohort of middle-class professionals—scientists, teachers, and consultants—have privately accepted climate collapse while maintaining public silence.
This "silent climate majority" understands the science but fears social alienation if speaking out. This tension creates a paradoxical behavior: privately doom-scrolling while publicly maintaining business-as-usual. Their activation could represent the crucial tipping point for mainstream environmental action.
“This [survival paradox] sees people getting trapped between an existential fear of other people's opinions in the present and an existential fear about the future.
As social creatures, we seek safety and security in being part of a tribe. For millennia, exclusion from the tribe for a social primate was a near-death sentence. Our abilities to read each other's cues and to seek to be accepted have been naturally selected for to keep us alive. Our brains have evolved to heavily weight this kind of data to keep us alive.”
The So What? Expect a tipping point before long as people’s outrage overcomes their discomfort. AOC and Bernie Sanders Fighting Oligarchy tours may help spark this.
Bonus: AI ethics
A long list of organizations working on AI ethics.
That’s all for this week. As always, feedback welcome. Feel free to share insights or links of interest.
- Stephen
Hey Stephen, this was a good read! Loved the P&G study! I’m always wondering not so much about the usage of AI but how efficient and productive it makes teams. I feel like efficiency of AI is knowing your system and your team and the costs and benefits of it. Since I’ve learned that sometimes AI can be a hindrance if you’re not exactly sure what you need it to accomplish.💪💪💪