Episode summary
Episode 374: Cary Krosinsky of Yale - The Right Kind of Transition Momentum
The Fiftyfaces Podcast
· · 39 min · Guests: Cary Krosinsky
Summary
Cary Krosinsky argues that sustainable finance has lost momentum just as the environmental and social cases for action have become more urgent. He says the last five years brought political and geopolitical headwinds, while climate impacts, inequality, and environmental degradation kept worsening. His new book, Transition Momentum, is framed as a response to the question of what comes next when existing approaches have not delivered sufficient change.
A central theme is that GDP is the wrong anchor for judging success because it captures flow but not stock, and therefore misses the system-wide damage being created. Krosinsky proposes a transition-momentum framework built around welfare efficiency, environmental footprint, and equity, and he argues that investors and policymakers need country-specific transition plans rather than broad slogans. He also says the field has relied too heavily on concepts such as ESG, standards, disclosure, and net zero without always being clear about what they can realistically achieve.
He is more optimistic about asset owners than asset managers, saying the 60 asset owners he works with have not slowed down their efforts. The book’s broader message is that real progress will depend on younger leaders, global cooperation, and practical case studies that can be scaled.
Key takeaways
- Cary Krosinsky says GDP is inadequate as a success metric because it measures flow but ignores stock, which distorts transition strategy.
- Krosinsky argues transition momentum should be assessed through welfare efficiency, environmental footprint, and equity, not slogans.
- He says the 60 asset owners he works with have not slowed down their sustainable-finance efforts, even if some have gone quiet.
- Krosinsky calls net zero conceptually attractive but practically overstated, saying scalable negative-emissions solutions are not yet realistic.
- He believes progress now depends on a broader majority, especially younger people, pushing for a global sustainability agenda.
Notable quotes
“we're not making sufficient momentum towards the sort of transitions that we require”
“why are we using GDP as a metric to measure success, right? GDP ignores stock”
“transition momentum on a country basis and perhaps also on a company and investor basis looks at three things”
“We need more global, we need more listening. Listening, learning, and collaborating”
“the whole structure of the COP process is wrong and it's fine to get people to get together annually”
How the episode opens
We definitely need more collaboration and cooperation as well. I think for whatever reason we've gotten stuck behind bounded thinking. That's certainly a systems thinking concept as well, right?
We need more global, we need more listening. Listening, learning, and collaborating. LLC, that's a different LLC.
That's, you know, certainly something I think we need more of. We need to have a situation where we achieve that necessary global majority behind the sort of agenda that can succeed. I think people have given up or they've gotten old or we need that next generation to emerge, the generation of leaders who have the right vision.
I'm Eimear Walsh and welcome to the 50 Faces Podcast, a podcast committed to revealing the richness and diversity of the world of investment by focusing on its people and their stories.
This podcast is kindly supported by Baillie Gifford and GCM Grosvenor. In a world that moves at an unrelenting pace, where the horizons of innovation stretch beyond what the eye can see, Baillie Gifford is driven by curiosity. As long-term growth investors, they are searching for hidden gems, the future winners yet to be realized, the winners in their fields.
Those companies with foundations built to last. Only the patient can see past the temporary and distracting. As an aligned partnership that resists the seduction of short-term gains, Baillie Gifford seeks out companies that will not only succeed, but do so by addressing the needs of society and driving change toward the next horizon.
As active investors, Baillie Gifford are not just spectators, they are partners in the narrative of progress. GCM Grosvenor is a global alternative asset management solutions provider with more than 90 billion dollars in assets under management across private equity, infrastructure, real estate, credit, and absolute return strategies.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- transition momentum
- sustainability
- climate change momentum
- gdp vs success metrics
- sustainable financing misunderstandings
Companies and tickers mentioned
- Yale
Watch the episode
Watch “Episode 374: Cary Krosinsky of Yale - The Right Kind of Transition Momentum” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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The Fiftyfaces Podcast, this episode and its artwork belong to Aoifinn Devitt. Octagon is not affiliated with the show; this page is an independent summary.
