The Viewpoint: What a zero-waste chef taught me about transition investing

As the manager of the Royal London Global Equity Transitions strategy, it’s important to keep up with the latest climate-related developments. So I decided to step away from my desk for a few hours last week to attend some events at London Climate Action Week.

On my way to one vendor event, a familiar, awkward feeling washed over me, the kind that a maths student (like me) might get when sneaking into a nerdy PowerPoint Karaoke night. I couldn't help but wonder: “Am I part of a dwindling minority in the investment community who still shows up to climate gatherings?”

I am so glad I went.

I was deeply inspired by a talk from the chef Douglas McMaster, the founder of Silo, a pioneering zero waste restaurant in London. Frankly, he made me feel cool for running a transition fund, something that is not that fashionable in the investment industry right now. I may not be half as radical or ambitious as Doug is in his kitchen, but I saw powerful parallels between his philosophy and the work we do.

“The jungle doesn’t have a bin”

Doug opened his presentation with this provocative quote, juxtaposing an image of a pristine jungle with a standard rubbish bin sitting right in the middle of it. He is entirely right. Industrialised food production, overconsumption, and our relentless chase for speed and efficiency have deeply alienated us from natural systems. A zero-waste restaurant is perhaps the most ambitious response possible to the structural imbalances in our food system.

Industrialised food production, overconsumption, and our relentless chase for speed and efficiency have deeply alienated us from natural systems.

For me, I see a similar opportunity evolving in the investment world. We need to back structural changes that restore resilience to businesses, shifting them away from a reliance on highly volatile fossil fuels and rejecting economic models that amplify social inequality.

It needs to taste great and offer an exceptional experience

Doug explained that a zero-waste restaurant simply cannot survive economically if it compromises on the taste of the food or the customer experience. Similarly, a transition fund must fulfil its fiduciary duty by delivering for investors. Sustainability cannot come at the cost of performance.

Beyond sheer intent, both fields rely on a ‘secret ingredient’ to make the theory work in practice. For Doug, his secret sauce is an ancient Chinese fungus called koji, used to ferment and preserve ingredients while unlocking a rich umami flavour. Our secret sauce isn't quite as ancient, but it is just as vital: the Corporate Life Cycle framework. We have used this framework for over a decade to identify financially attractive opportunities, specifically targeting the ‘Improvers’ and ‘Enablers’ driving the transition.

The bin is deep

Toward the end of his presentation, Doug took a deep breath and noted, “But the bin is deep [to clear up].” He meant that unwinding a century of industrialised food production requires a massive, systemic effort.

The same is true for transition investing. It is a complex, nonlinear journey that demands systems thinking and active management. Doug is now taking his concept global, not expecting every restaurant to go zero waste overnight, but aiming to scale elements of his practice to shift the wider food system. Similarly, we don’t claim that transition investing will change the world overnight. However, every insight gained and every asset allocation choice we make acts as a building block toward the world we and future generations aspire to live in.

At the end of the event, we were lucky enough to sample some of Silo’s incredible canapés. We tried Siloaf, their signature 48-hour fermented sourdough served with freshly churned butter, alongside a plant-based polenta paired with Szechuan chili. We were also served Mediterranean octopus, which is part of Silo’s invasive species menu, a sobering reminder of climate warming, as these octopuses are increasingly found disrupting local marine balance in English waters. Finally, we tried a dish called spicy rabbit. They all tasted great!

Fashions come and go in the investment world, and right now, climate and sustainability are temporarily ’out of style’. But what became crystal clear to me during London Climate Action Week is that the conversation has evolved. We have moved past superficial, headline level "decarbonisation" toward deep, operational action.

We have moved past superficial, headline level "decarbonisation" toward deep, operational action.

The risks and opportunities born from structural trends like climate change do not ebb and flow with market sentiment, they consistently impact our lives and investment returns in quiet, powerful ways. Just as Doug travels the world foraging for his next ingredient, I returned to my desk newly inspired to hunt for the next great transition investment idea.

For professional investors only. This material is not suitable for a retail audience. Capital at risk. This is a financial promotion and is not investment advice. Past performance is not a guide to future performance. The value of investments and any income from them may go down as well as up and is not guaranteed. Investors may not get back the amount invested. Portfolio characteristics and holdings are subject to change without notice. The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.