Decisive Investments

Article originally published by Valor Econômico, the Newspaper.

In the mid-20th century, French photographer Henri Cartier-Bresson published his seminal work Images à la sauvette, later translated into English as The Decisive Moment. While not a literal translation, it captured the spirit of the book — an idea the author himself summarized:

“There is nothing in this world that does not have its decisive moment.”

It is fair to say we now live in a decisive decade: one that calls for the revival of Ethics in Economics and, consequently, demands Decisive Investments.

The photography of our era is, unfortunately, far from inspiring. Positive trends that marked much of the 20th century, like the global reduction in inequality or the collapse of authoritarian regimes, have reversed sharply. We see rising inequities, extreme political polarization, and intractable problems like climate change showing little meaningful progress. We are, undeniably, at the dawn of a decisive decade — not only because we possess the technology and knowledge to address these challenges, but because we face a closing window of opportunity to tackle the growing fractures of our time.

There are many lenses through which we can examine these challenges. Here, I focus on the economic lens — and in particular, the role of one of its key agents: the Investor.

In On Ethics and Economics, Nobel Laureate Amartya Sen argues that Economics has two distinct origins: one rooted in Ethics and its interplay with politics, and the other, more technical, concerned with market mechanics and economic relations. Sen criticizes the narrowing of economics in recent decades to this technical sphere, often relying on reductive models that, for instance, ignore insights from behavioral economics. Foundational assumptions like rational behavior and individual utility maximization are being questioned. Sen advocates for reintroducing ethical considerations into economic discourse, enriching not only theory but also the mental models that guide real-world decision-making.

Applying a similarly “objective lens” to the investment field, we must recognize the parallel issue: a dominant fixation on short-term profits at any cost. A glance at recent history suggests the most glaring flaw in current financial models is the systemic exclusion of negative externalities from pricing mechanisms — climate change being the most striking example, often cited as the greatest market failure of our time.

Yet there are signs of progress. Conversations around responsible investment and corporate social responsibility have gained momentum — despite more recent backlashes — an encouraging step toward what Sen calls the reintroduction of Ethics into our economic models and decision-making.

When projecting an image of the future of investing, we should move beyond the narrow mindset of negative “filters” (or “screening,” for those familiar with investment taxonomy) and bring more color to the Investor’s practice. A richer, more vivid image emerges when we focus on Decisive Investments: not merely investments that avoid harm, nor solely those that actively generate Social Value, but a distinct subset of what some label impact investing — one that decisively targets the most pressing social and environmental challenges. Decisive Investments channel innovation towards social justice and environmental resilience at a systemic level, responding to the moral imperatives of our time and anticipating the demands of generations to come.

The projected image? Projects that endure, carry lower long-term risk, create substantial Social Value, deliver competitive returns, and foster a sense of shared accomplishment among all stakeholders. This may sound idealistic, but it is entirely possible. This is how we can define — and should seek to practice — Decisive Investments.