Sustainable investing has become a buzzword on trading floors and in boardrooms, but for many, it still feels like an exercise in branding rather than impact. At the University of Edinburgh, however, one student-led organisation is challenging that perception. Prosper Social Finance, entirely run by students, is carving out a distinctive approach to climate-conscious investing—combining global finance with local, environmental, and social initiatives, and rethinking how ESG (environmental, social, and governance) principles can drive change. I sat down with Chelcie Mohammed, Executive Director of Prosper, to discuss the fund’s environmental philosophy and its growing role in tackling climate challenges.
Prosper has moved from treating ESG as just risk mitigation to seeing it as an opportunity for impact. How do you identify companies whose environmental strategies create intrinsic value, rather than just surface-level “green” claims?
Since its founding in 2018, Prosper has built its reputation on socially responsible finance. This year’s Annual Report marks a decisive shift: moving beyond ESG as risk mitigation toward ESG as opportunity. Chelcie is clear on what that means: “We look for companies whose environmental strategies are intrinsic to their business model—not just corporate social responsibility projects bolted on for reputation,” she explains. That means asking tough questions about materiality. Is a clothing company tackling water waste in textile production, or just planting trees in unrelated geographies? The team also looks for tangible links between sustainability and financial performance: cost reductions from efficient supply chains, revenue growth from low-carbon products, and resilience to climate-related supply chain shocks. If sustainability doesn’t appear in capital expenditure or product strategy, Chelcie says, “that tends to be a red flag.”
Prosper’s new focus on “hard-to-abate” industries like steel, cement, and shipping. Why is it important for a student-led fund to engage with these carbon-heavy sectors, and how do you balance environmental concerns with financial returns?
One of the boldest moves in Prosper’s updated strategy is its deliberate focus on “hard-to-abate” sectors—industries like steel, cement, and shipping, which account for a vast share of global emissions. For many ESG investors, these are taboo. For Prosper, they’re unavoidable: “Without decarbonising these sectors, net zero targets are essentially impossible,” Chelcie argues. Student funds may be small, but they can be catalytic. By investing early, Prosper signals to larger pools of capital that innovation in these industries is worth backing. Chelcie stresses the goal is not perfection but transition readiness. “We look for credible decarbonisation roadmaps, not just firms claiming to already be green.” By balancing high-impact investments in these sectors with renewables and recycling, Prosper shows that climate impact and financial rigour can go hand in hand—even in carbon-intensive spaces.
Prosper has added holdings like Iberdrola in Spain and Vestas in Denmark. How do you evaluate which renewable energy companies are genuinely advancing the energy transition versus those overstating their impact?
Renewables remain central to Prosper’s portfolio. Recent investments in Iberdrola (Spain) and Vestas (Denmark) show how it identifies genuine transition leaders.“What matters is core value alignment,” Chelcie says. “How much of the company’s revenue and capital expenditure is tied directly to renewable generation or enabling technologies?” Red flags include fossil-heavy portfolios overstating small green projects. Genuine leaders, like Vestas with its offshore wind turbine innovation, build their entire model on renewables.
You recently invested in Tomra, a recycling and sensor-based sorting company. What role do you see for circular economy firms in a sustainable portfolio, and how do they compare to more traditional clean energy plays?
Prosper’s environmental lens extends beyond energy. Its investment in Tomra, a Norwegian recycling and sensor-sorting company, reflects a push toward resource efficiency.“Circular economy firms address the demand side—cutting emissions from materials, waste, and consumption,” Chelcie explains. Tomra’s reverse vending machines reduce the need for virgin material extraction—one of the hardest sources of emissions to abate. Investments like this broaden the portfolio’s ESG footprint, touching not only carbon but also waste, biodiversity, and water conservation. “It’s just as vital as pure-play renewables,” Chelcie notes.
Beyond global equities, Prosper supports Edinburgh-based projects like Invisible Cities. How do you see the link between global climate investing and local environmental or social initiatives here in the city?
Despite its global outlook, Prosper’s impact is close to home. Each year, the fund directs profits into social impact grants for Edinburgh-based projects. Most recently, this included continued support for Invisible Cities, a social enterprise that trains people affected by homelessness to become walking tour guides. Chelcie sees this dual focus as core to Prosper’s mission. “Climate transition without social justice is fragile, and social projects without systemic decarbonisation can only go so far,” she says. By linking global investments with local initiatives, Prosper ensures climate finance is not abstract—it’s visible and felt.
Student Finance with Real Impact
Now in its second five-year horizon, Prosper has trained more than 360 analysts and grown its network of partnerships with leading responsible investment firms. Yet at its core, it remains a student-led experiment in how finance can drive systemic change. For Chelcie, the lesson is simple: “We can’t change the global carbon equation by only investing in easy, clean sectors. But by engaging with the toughest challenges—while still supporting our local community—Prosper proves that students can play a real role in shaping a just and sustainable transition.”
Photo by Karsten Wurth on Unsplash
