Charlotte O’Leary, CEO of Pensions for Purpose, concluded Sustainable Finance.Live 2025 with a compelling keynote addressing the often-overlooked role of pensions in sustainability discussions, heralding the onset of a transformative era.
After summarizing key points from the event, O’Leary highlighted complacency as the greatest threat to sustainability progress. She expressed optimism about the UK market, noting the vibrant venture capital, technology, and B Corp communities, while stressing the need for greater alignment between innovation and sustainability efforts. O’Leary cited the resilience of B Corps during the COVID pandemic to illustrate the effectiveness of organizations committed to rigorous accountability measures.
Reflecting on her experiences in asset management, O’Leary conveyed frustration over the industry’s tendency to dismiss social impact and environmental governance:
“Returns depend on having the necessary people and planetary resources. Yet, we see investment phrases like return-seeking portfolios and profit-first approaches, which seem misguided. You can’t start with profit; the challenges we face today begin with our choices.”
### Pensions as Enablers of Infrastructure
O’Leary discussed the pivotal role of pension fund capital in driving resilient infrastructure in the UK, emphasizing its connection to fiduciary duty and long-term sustainability. She pointed out that initial discussions around ESG investments often focus narrowly on individual goals, such as climate change, rather than embracing a holistic view of sustainability where all systems are interlinked:
“You can’t affect one area without influencing everything else. Change requires us to think beyond our traditional silos. Solutions may come not just from investments, but also from governance models.”
Referencing the focus on infrastructure at Sustainable Finance.Live, she elaborated on the interconnectedness within various sectors:
“When establishing climate change objectives, we must also consider biodiversity loss, healthcare, water, food, and energy security—these are all intertwined. Social and economic challenges could significantly hinder our progress on climate goals.”
### Balancing Short-term and Long-term Goals
O’Leary addressed the prevalent short-term focus of governments and asset managers, emphasizing that long-term thinking should take precedence. She noted the disconnect where pension fund investments often overlook the communities they should support:
“Pension funds should focus on investments reflecting the infrastructure needs of the communities they represent. However, we haven’t effectively created the connections needed to achieve this.”
To bridge the gap between the industry’s value and environmental financial needs, she underscored the importance of aligning fiduciary duty and policy with long-term planning.
### Emphasizing Accountability and Executive Compensation
On a more personal note, O’Leary stressed the importance of accountability, employee motivation, and addressing economic inequality in order to enhance access to impact investing. She proposed a framework aimed at improving transparency regarding sustainability and infrastructure impacts, which includes:
1. Identifying impact priorities
2. Integrating impact across mandates
3. Contributing to intended impacts
4. Measuring, managing, and reporting on these impacts
In closing, O’Leary reiterated the significance of viewing sustainability and infrastructure through an interconnected lens. She emphasized the need for transformation at the inception of funding initiatives, particularly highlighting the disparity between employee and executive compensation:
“Leaders must feel accountable to everyone within their business. My compensation was linked to team performance; if I thrive, so does everyone else. We must recognize that we cannot claim to be sustainable if our employees are left facing poverty in retirement.”