Octopus team sets up sustainability integration firm Groundswell
The sustainability and impact team at Octopus has left to set up its own sustainability integration business for asset managers.
Jack Cracknell (pictured left) and Lucy Ronan (pictured right), ran the impact and sustainability team for over five years across the Octopus group of companies, including Octopus Investments, Octopus Ventures and Octopus Capital. They have now set up Groundswell to build more efficient sustainability capabilities within the asset management and private markets spaces.
CEO of Groundswell Cracknell told PA Future: “[We set up Groundswell as] we observed that companies had built sustainability functions that operate in silo to the wider business. We knew from our experience running the impact and sustainability team at Octopus that there was a more efficient, commercial approach.”
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He added sustainability spans everything from investment management, marketing, and IR through to finance and compliance so companies operating sustainability functions as silos were creating huge inefficiencies.
“Our fractional team provides companies with the support they need to integrate sustainability. In the process we help companies move sustainability from a function to a capability.”
This, he added, helps them become more efficient, as sustainability becomes integrated within the roles and responsibilities of existing teams, and companies require less hands-on support with delivery. They also become more commercial as operational and commercial teams are forced to think about why sustainability matters to the business and how it supports their wider strategy.
Octopus has invested in the new business and the Groundswell team will have the support of the firm’s operational teams. Octopus is also now a Groundswell client.
Looking ahead, Cracknell added: “We want to build a huge business that’s helping companies to unlock efficiency and value through sustainability.
“Right now, we’re focused on the efficiency gains associated with moving sustainability from a function to a capability, because if we can succeed in making sustainability more integrated it will also become more commercial. We know that will create opportunities for Groundswell, and the wider market, to unlock its value.”
Meanwhile chief impact officer Ronan said in a statement: “We understand that integrating sustainability into a business is challenging. However, our experience working with some of the world’s leading investors and companies has proven to us that integration is the key to reducing costs and turning sustainability into a competitive advantage. Instead of creating siloed sustainability teams, our solution provides asset managers with a combination of advisory, capability building and embedded hands-on support…until we’re no longer needed.”