Shifting perspectives on capital, through Causal Layered Analysis

What’s a problem you’re in love with? Elaine asked this question during one of the Youth Cop sessions. At first, I couldn't understand it. How can you be in love with a problem? Aren’t we supposed to be annoyed by problems? And then it made sense. It is a problem that you cannot stop thinking about. That you kind of make your goal to resolve.

For me the problem was : why does impact investing stay small despite decades of momentum? Indeed, when we take a look at the numbers, they tell an interesting story about impact investing. Today, an estimated 3907 organisations manage around 1.57 trillion USD in impact assets while the world’s largest single asset manager controls nearly 12 trillion USD.

Discovering Causal Layered Analysis (CLA)

Then I got introduced to Causal Layered Analysis (a foresight methodology) through Elaine. It examines problems across 4 layers : from surface to the deep structures and stories underneath. Think of it like peeling an onion : each layer reveals what is driving the layer above it.

I like saying that with the Causal Layered Analysis, you take one step back to move further.

You pause in asking the "how" (how to get more capital? How to improve impact measurement?) to start asking the "why" (why does the current system resist transformation? Why do we tend to oppose profit and purpose?)

Shifting Perspective on Capital

This shift changes our vision. In my case, it changed the way I saw capital allocation. We can have more capital, more metrics or more financial products. But if we don’t confront our biaises regarding finance, unfortunately, things won’t change much. And there are so many biaises around finance that sometimes, it is hard to identify where to start ?

A real example comes to mind. I am a consultant in sustainability & impact investing. I believe in sustainability as a culture. My work aims for a future where every investment drives impact and finance operates sustainably by default.

Last year, a social entrepreneur from Cameroon, whose business is amazing came to me. He collects used goods from France, ships them to countries in Central Africa and trains local people to repair them. Through microcredit, these trainees then keep the repaired goods and turn them into their own small businesses. He is creating jobs and making a social impact.

Yet, he had one question that made us pause: which legal status should he choose? A private company could allow him to raise funds and scale faster, but the investor road would have been difficult even though he was generated real impact. A nonprofit seemed like the obvious choice, but it forces him down a path that doesn't fully recognize the business he is building. The current system doesn't give him much alternative.

His venture has purpose and creates jobs. But the systemic & narrative barriers make it difficult to access the capital he needs. It forces us to ask: why should impactful ventures face such constrained options? Why does our system struggle to see money and purpose as allies?

CLA to the Rescue

This is where CLA makes its entrance. It gives a framework. I recently applied this framework to examine why impact investing stays minor in an article for Impact Entrepreneur. This article opened unexpected doors :

• First, Sohail Inayatullah (developer of the Causal Layered Analysis) read the article and asked to feature it as a case study on the CLA website;
• It also led to discussions on workshops and collaborations with organizations and companies on sustainability and impact investing transformation.

Once we reveal the hidden patterns holding a problem in place, people get curious and want the analysis applied to them. So my question to you is: what is a problem you’re in love with?

- Clémence Betesuku, Break the Mold