Supported by


A theory of change for climate investing: A partner-supported episode

A conversation with Carbon Collective CEO Zach Stein on how to maximize the climate impact of investment portfolios.

This episode was produced in partnership with Carbon Collective.

Last year’s surge in oil prices brought record windfall profits for oil majors — and a boon for investors. But historical trends don’t favor fossil fuels.

From 2010 to 2020, the oil and gas sector underperformed the broader S&P 500 index. The sector gained 6% over that period, while the benchmark S&P index grew 180%. Some called it a lost decade” for fossil fuel investors.

If anything, oil’s been a drag,” says Zach Stein, the co-founder and CEO of Carbon Collective, a company building climate-focused portfolios for investors and employer 401(k) plans.

The oil and gas sector’s recent surge shows how fundamental fossil fuels are for today’s economy. But looking forward, oil is facing the most significant competition it has ever seen, thanks to electrification and clean energy. 

That view of the long-term threat to fossil fuels drove Zach to co-found Carbon Collective with a mission to build funds around industries that will deliver strong returns in a climate-constrained world.

In this episode, produced in collaboration with Carbon Collective, Zach Stein talks with Stephen Lacey about trends in sustainable investing: how to define the category, identify strong investments and separate it from the confusing world of environmental, social and governance (ESG) issues.

If you want to invest sustainably — at work or individually — you can learn more at There, you can see how the portfolios are built and read more about the company’s theory of change.