Financial Upside Meets Long-Term Impact | The Compass (January 2025)
Food system transformation & more in our January newsletter
I recently joined Elysabeth Alfano on VegTech Invest’s podcast Upside & Impact, a show that features in-depth interviews with leaders in the impact investing space to uncover the potential financial upside and long-term impact of investing in sustainable sectors such as food, alternative energy, materials, and more. We had an engaging hour-long conversation covering everything from my journey in impact investing to systemic solutions for climate change – check out a fantastic write-up on ETF Central, and/or listen to the full interview on Apple or Spotify. Among the many topics we explored, three themes stood out, and I wanted to share those key takeaways with you.
1. The Food System Touches Everything
Food systems were front and center in our discussion, as both Elysabeth and I share a deep focus on this area. I’ve spent over a dozen years working in food system transformation, backing incredible companies like Beyond Meat and Foodsmart through my previous firm, Closed Loop Capital, and more recently ventures such as Jack & Annie’s and Copia.
The extractive and exploitative nature of our current food production systems is eroding our ability to sustainably feed ourselves. It’s imperative to understand that food doesn’t exist in isolation. The food system is deeply interconnected with nearly every other natural and human system—taking a massive toll on land, oceans, energy, and other natural resources.
To truly transform food systems, we must adopt a holistic view, understanding these interdependencies and feedback loops. For example, industrial farming practices designed to maximize food production can degrade soil health and pollute water sources, ultimately reducing crop yields and jeopardizing food security. Conversely, sustainable farming methods that focus on soil regeneration not only boost long-term food production but also improve water quality, reduce energy-intensive irrigation, and enhance biodiversity. Each element — soil, water, energy, and ecosystems — is intricately tied to the quality and availability of our food. Solving one challenge in isolation risks reinforcing harmful cycles rather than breaking them.
2. Attention vs. Intention
Transforming systems requires two critical components: attention and intention. Attention is listening, learning, and preparing. Intention is taking informed action, and advocating and assisting others to take action. Over the last decade, I’ve been encouraged by the growing attention to impact investing and environmental stewardship. Waste is an illustrative example. On the one hand, the concept of “circularity” has become a mainstream buzzword, highlighting awareness around reducing waste—a massive lever in combating emissions.
But intention is still lagging. While the conversation has shifted, our actions haven’t caught up. Consumption patterns remain unsustainable, and the systemic changes needed to reverse these trends still feel out of reach. We must translate awareness into behavior change and action at every level—from consumers to corporations.
3. Systems Change Requires Blended Capital
To drive true systems change, we need to take a polycapital approach, which means deploying multiple types of capital. Venture capital is a critical lever—it offers the best opportunity to disrupt entrenched industries because incumbent companies aren’t going to disrupt themselves. You need the Teslas of the world to shake things up with new business models and paradigm shifts.
That said, venture capital alone isn’t enough. Philanthropy is vital to help fund early R&D, boost consumer awareness, and support initiatives that might not fit neatly into traditional investment frameworks. Too often, VCs focus solely on production—creating new products or services—while neglecting the demand side. Philanthropy, along with policy advocacy and regulatory change, plays a key role in addressing that gap. This is why taking a polycapital approach is so important. To achieve transformative systems change, we need to leverage all available tools to tackle the problem from multiple angles.
At Third Nature, we firmly believe that financial upside and long-term impact are not mutually exclusive—we can achieve both. By taking a systemic and integrated approach, we’re proving that investing in scalable solutions can deliver strong returns while addressing the urgent challenges facing our planet.
With gratitude,
Jason W. Ingle
E hello@thirdnatureinvestments.com
in jwingle
P.S. Is there a topic, news story, or trend you’d like us to explore in an upcoming issue or blog? We’d love to hear from you, drop us a line at the email address above!
Third Nature News
Reimagining Capitalism: The Role of Businesses
Jason W. Ingle
Milton Friedman’s view of capitalism, which centered on shareholder primacy, no longer serves the world we live in today. The businesses that will thrive in the future are those that embrace regenerative principles, contribute to the public good, and recognize that their long-term success is inextricably tied to the health of the planet and society. By restructuring how businesses operate, we can create a more restorative form of capitalism that works for both people and the planet.
What We’re Reading
The Climate-Driven Diaspora Is Here
Wired
Many places are becoming increasingly unlivable. And around one-quarter of humanity is already dealing with drought and associated food insecurity. By 2070, one-fifth of the planet could become too hot for normal human life, causing up to 3.5 billion people to move. Sea level rise alone could displace 410 million people globally by 2100. We are poised to see the largest and fastest movement of people in human history. New policy frameworks will be needed. In 2025, we will begin to shift from reactive to proactive, and start to embrace the imperative of climate-driven relocation.
After historic 2024 coral bleaching, hope remains for Mesoamerican Reef
Mongabay
The Mesoamerican Reef, the longest barrier reef in the Western Hemisphere, stretches 1,000 kilometers (620 miles) along the Caribbean coasts of Mexico, Belize, Guatemala and Honduras. The latest instalment of the Mesoamerican Reef Report Card, a periodic health assessment, finds that in 2024, the worst coral bleaching event on record reduced the reef’s coral cover. Although the overall health of the Mesoamerican Reef remains “poor,” according to the report, its health actually improved for the first time in five years. The report attributes this positive development to an increase in fish populations due to effective enforcement of fisheries rules by regional authorities.
Why ‘Tipping Points’ Are the Wrong Way to Talk about Climate Change
Scientific American
Unstoppable ice loss in Antarctica. Irreversible permafrost thaw in the Arctic. The shutdown of a gigantic Atlantic Ocean current. Scientists have warned that these and other “tipping points” in the Earth’s climate system lie ahead if global temperatures continue to rise unabated. But there’s still great uncertainty about how and when the planet might cross these dangerous thresholds. And without clearer public communication about what exactly a tipping point is — and what can be done to prevent it — the entire concept might not be that useful when it comes to promoting climate action.
Our Companies in the News
Keel Labs wins ‘Innovation Project of the Year’ at Textile Exchange Climate & Nature Impact Awards
Fashion United
Sustainable next-gen materials company Keel Labs has been selected as the winner of the 'Innovation Project of the Year' at the Textile Exchange Climate & Nature Impact Awards. Presented with an award during the annual Textile Exchange Conference on October 31, the fourth annual award program honors those in the fashion and textile industries who demonstrate commitment and determination in advancing positive impacts for climate and nature, Keel Labs was selected for its low-impact, next-gen material made from alginate, Kelsun fiber.
The Best And Worst Hot Dogs At The Grocery Store, Ranked By Nutritionists
BuzzFeed
A healthy vegetarian option: Jack & Annie’s Jackfruit Sausages Many “not dogs” out there contain iffy ingredients (like soy protein isolate), inflammatory oils (canola), and lots of stabilizers and additives to make them taste good. “While they’re 100% better for the environment, they’re still very processed products and may not be that much better for your health,” said Marissa Meshulam, a registered dietitian. Instead, go for a real plant-based protein (like tofu, beans, or legumes). Jack & Annie’s Jackfruit Sausages, for instance, are made with a base of jackfruit — a plant that eats like your favorite meat — and prepared with natural seasonings.
Julia Marsh: Seaweeds as Viable Solution to Single-Use Plastic Dilemma
KUDOS AM/PM Podcast
In this episode, host John Kudos dives into the fascinating world of sustainable design with Julia Marsh, the CEO and Co-founder of Sway, a company making waves in material innovation. From her beginnings as a design student with a passion for circular materials, Julia shares how she developed a solution to plastic waste using an unlikely resource: seaweed. They discuss Julia's journey from a graduate thesis to founding Sway, the pivotal moments that shaped her path, and her research trip to Bali and building a team driven by purpose. Discover how seaweed is not only replacing plastic but also supporting ecosystems and coastal communities.
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