Interview with Carlota Esguevillas – Head of Sustainable Investment
What attracted you to apply to the Endowments Investing Challenge?
We were drawn to the Endowments Investing Challenge as it aligns closely with our core purpose: generating positive outcomes for people and planet. As a charity-owned asset manager, we have always believed that investment should be a force for good, and the Challenge represents a real opportunity to demonstrate what public-market impact investing can achieve.
What particularly resonated was the Challenge’s explicit focus on future generations – and we have therefore developed a new strategy explicitly with younger people in mind. We partnered with the Green Schools Project, which provides high-quality climate educational workshops to schools in the UK, to hear directly from young people on what they would like to see greater investment in – and their perspectives were key in shaping the strategy’s priorities.
We are also excited to partner with Big Issue Invest. Big Issue’s expertise on poverty prevention, financial resilience and social justice has sharpened our understanding of the real-world issues we are aiming to address. A portion of our management fee will directly support Big Issue Group’s mission, and the opportunity to collaborate on this strategy is a particularly motivating aspect of the Challenge.
We were also inspired by the collective ambition of the six partner endowments to bring lasting change to the lives of young people by tackling root causes of poverty and building an economy that works for all. Working alongside organisations firmly rooted in social justice only strengthens our conviction that capital can and should be used as a powerful force for good.
Tell us the changes you're most proud of in your organisation that move you towards being more sustainable, inclusive and responsible for a better future for all.
We are incredibly proud to have adopted SDR sustainability labels – both Sustainability Impact and Sustainability Focus – across our entire fund range. At the time of writing, EdenTree is the only UK asset manager to have every fund SDR-labelled, which is a powerful reflection of how deeply sustainability is embedded in our approach. This achievement demonstrates the consistency, intentionality and integrity of our investment process across all asset classes.
I am also proud of the way EdenTree has strengthened the foundation of our sustainable investment approach over the past year. We have always believed that sustainability must be embedded in every part of our investment process, and the evolution of our sustainability approach, the EdenTree Standard, has been a significant milestone in delivering on that ambition. Our Standard underpins every investment decision and sets out clear expectations of the companies we invest in, ensuring that sustainability and long-term value creation remain at the heart of our research and our portfolios.
Culturally, we continue to strengthen our inclusivity and corporate responsibility. Our DEI commitments, which are reinforced through partnerships with organisations such as The Girls’ Network, Blind in Business and We Can Be, shape a more equitable and supportive workplace.
We are also members of Inclusive Employers and The Diversity Project, demonstrating our commitment to external challenge and collaboration to build a more inclusive culture.
What opportunities do you see to invest in impact on future generations?
The opportunities to invest in impact for future generations are vast and urgent. From our work with young people in our Green Schools Project workshops, we developed five key areas of focus for the strategy:
1. Social infrastructure
Affordable housing, access to education, training and essential services are foundational to long-term wellbeing. Investments here help build resilient, inclusive communities.
2. Climate resilience
Clean, renewable energy; circular economy solutions; and water security all underpin a safer future for young people. Environmental resilience is ultimately a social investment.
3. Health
Access to essential medicines, preventative care and innovative health solutions have a direct, measurable impact on outcomes across generations.
4. Financial inclusion
Supporting responsible lenders, social bond issuers and organisations increasing access to banks and other financial entities can transform futures – particularly for vulnerable households.
5. Safety and digital responsibility
As technology shapes every aspect of young people’s lives, investing in responsible AI, cyber security and digital inclusion ensures that innovation enhances rather than threatens society wellbeing.
What have you learnt through this process?
This process has reaffirmed what we have always believed: genuinely impactful investment cannot be delivered in isolation, it is delivered through engagement – with communities, with experts and with those whose futures are most shaped by it.
A powerful learning has come through our partnership with the Big Issue Group, whose insight has reinforced the importance of designing an investment strategy that responds directly to social barriers such as poverty.
Our partnership with younger people has also been extremely rewarding. The clarity we received from our work with students in determining what the strategy should look like was integral to its creation. We will remain curious and open to the perspectives of younger generations by continuing to check in with them throughout the life of the strategy to ensure it remains aligned to their priorities.
Finally, the process has reinforced that public markets can deliver meaningful impact when approached with intention and transparency. If we are going to use capital to shape the world for better, we must use robust frameworks, stakeholder input and active stewardship – and hold public companies to account.
What question would you like to ask the Future Generations Panel?
We would like to ask the Future Generations Panel: If you chose us as your winners, what would make you say, “we made the right choice” in year one – and what would make you say the opposite?
Response from the Future Generations Panel:
The investment is intended to create long-term impact, so we recognise that one year isn’t long. We do think organisational change is deliverable within a year though. So, to feel we’d made the right decision if we chose EdenTree, we’d like to see clear and positive differences within your own organisation. We’d like you to decide where you think change is needed, but we’d prioritise reducing the pay gap and implementing sustainability changes among others.
Alongside that, we’d expect that the investment is being implemented as expected and is aligned with what is agreed. We’d want tangible evidence that your investment approach and engagement with investees are working. And reporting should be progressing as outlined.
If we saw no organisational change within the 12 months and the investment approach wasn’t progressing as expected (taking into account external forces), we’d feel that we had made the wrong choice.