Bill Gates is an epitome of foresight, recently refusing to divest from fossil fuels on the premise that instead he will invest in energy innovation. Here are three reasons why, in my opinion, this is a stellar strategy:

1. SCALABILITY: Current renewables are not anywhere close to supporting the world. Divesting from fossil fuels is what is termed as 'negative screening' - excluding anything with social or environmental externalities from your investment portfolio (fossil fuels/arms manufacturing/drugs). To me that is running away from the problem, not solving it.

2. INNOVATION: Its far wiser to include positive investments to 'bend the curve' (such as clean energy/peacebuilding efforts/community building). The solution lies in disruptive technology that can revolutionize the energy landscape - which will take astronomical amounts of capital.

3. SUSTAINABILITY: To sustain one's impact trajectory in the long term one needs to survive in the short term. Maybe financial returns today made from fossil fuel investments can be invested in exploring solutions that can help achieve environmental and social returns tomorrow. It is that trade off we need to consider - even the best of intentions can be myopic and it is imperative for investors to think about the bigger picture for building a better future.

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