Betting Big on Energy at the Edge: SDCL Finds Double-Digit Returns Off the Grid | Jonathan Maxwell (#060)

SRI360 | Socially Responsible Investing, ESG, Impact Investing, Sustainable Investing

Here's something I learned in this interview: We're wasting three-quarters of the world’s energy, half of its food, and a third of its water. That’s a crazy amount of lost resources! But what if, instead of just seeing this as an environmental problem, we saw it as a huge economic opportunity?

The truth is, we don’t need to wait for new technology, or find new resources, or produce more – we just need to use what we already have more efficiently. After all, if massive investments in renewable energy haven’t significantly reduced global emissions, and fossil fuels still dominate, maybe the real issue is how we're using our resources in the first place.

That’s the perspective my guest this week is sharing.

I’m sitting down with Jonathan Maxwell, founding partner and CEO of Sustainable Development Capital LLP (SDCL). Over the past 17 years, Jonathan has built SDCL into a leader in sustainable investing, driving projects across 50,000 properties worldwide to cut energy waste and boost efficiency.

His approach is all about EDGE investing – efficient and decentralized generation of energy – which focuses on producing energy closer to where it’s needed (since the majority of energy is lost before it even reaches consumers). This strategy not only makes energy consumption more sustainable, but it also helps clients cut costs and delivers double-digit returns for SDCL.
At SDCL, it’s not just about benefiting the environment and society – the projects have to be financially viable, too. Jonathan argues that degrowth isn’t a responsible investment strategy, insisting, “If it’s not commercial, it’s not sustainable.”

Join us as we talk about Jonathan’s journey, his investment philosophy, and how SDCL’s innovative strategies are transforming energy use, tackling climate change, and driving sustainable growth.

Tune in now!

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About the SRI 360° Podcast: The SRI 360° Podcast is focused exclusively on sustainable & responsible investing. In each episode, I interview a world-class investor who is an accomplished practitioner from all asset classes.
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Key Takeaways:
Intro (00:00)
Jonathan Maxwell's background, education, and early career (03:25)
Joining HSBC and gaining international experience in investment banking (15:32)
Sustainability epiphany in China and founding SDCL (21:45)
SDCL's mission, activities, and investment focus (40:16)
SDCL's theory of change (01:05:44)
Jonathan’s book – 'The Edge' (01:18:05)
Project portfolio, impact measurement, and reporting (01:21:51)
Future of energy efficiency investments (01:32:18)
The role of nuclear power in future energy solutions (01:39:40)
Rapid fire questions (01:44:35)
Connect with Jonathan (01:51:09)

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Additional Resources:

- SDCL website
- SDCL LinkedIn
- SEEIT website
- SEEIT LinkedIn
- Jonathan Maxwell Substack
- Jonathan Maxwell LinkedIn
- Buy The Edge by Jonathan Maxwell