Iyassu Essayas on Risk, Responsibility, and the Next Generation of ESG
In the latest episode of Dollars & Change: The Expert’s Guide to Sustainable & Responsible Investing, host Peter Krull spoke with Iyassu Essayas, Board Member of US SIF, and the Chief Executive Officer of Inflows—a new digital platform for financial advisors to connect and exchange ideas—at the US SIF Forum in Washington, D.C.
Iyassu’s journey began with studying biology and environmental conservation at The University of San Francisco. That scientific foundation has shaped how he thinks about risk and the connection between environmental systems and finance.
Starting his career during the 2008 financial crisis, he interned at Parnassus Investments, a pioneer in socially responsible investing. There, he worked on ESG profiles that blended financial research with factors such as environment, community, workplace, customer, and governance. He rose through the ranks—from ESG Analyst to Director of ESG Research—before continuing his leadership work on the boards of DiversIQ, Envest Microfinance, and US SIF, and later founded Inflows in 2024.
ESG as Risk Management
Iyassu explained how ESG is often misunderstood—it’s not about politics or personal values but about evaluating a company’s performance and impact across environmental, social, and governance factors. He noted that ESG analysis looks beyond the numbers, considering things like a company’s impact on the environment, its workers, customers, community, and leadership. This broader view helps investors see which risks a company is managing well and which ones might be slipping through the cracks.
He emphasized that ESG helps investors understand where companies may be exposed to risk, from facilities in flood zones to distribution centers that are vulnerable to climate disruptions. Ultimately, these environmental factors can directly affect a company’s operations, stability, and long-term success.
Looking Ahead
Despite the noise around ESG, Iyassu is optimistic about the future of sustainable investing. He noted that although political pushback is peaking, awareness has grown. Iyassu joked that the moment President Trump mentioned “ESG” in a negative context, the term gained positive traction, giving the industry more attention.
He believes a major part of that momentum comes from younger investors. As Gen Z and Millennials continue to invest in issues they care about, such as climate change, they’re pushing the industry forward and seeking portfolios that reflect both financial discipline and real risk awareness. That demand, he hopes, will continue to strengthen sustainable and impact investing.
Iyassu’s perspective underscores a key takeaway for investors: ESG isn’t about ideology. It’s about seeing the full picture. It helps investors understand a company’s real risks, responsibilities, and long-term resilience. And as he pointed out, recognizing these risks isn’t just responsible investing—it’s essential for making informed decisions. No one wants to look back and realize the writing was on the wall. With climate impacts growing and business risks changing fast, investors who look deeper will be better prepared for whatever comes next.
To learn more about Iyassu’s journey and his perspective on the evolving future of sustainable investing, listen to the full episode here.
Check out some of our recent episodes:
- Mark Hays, Director of Sustainable Investing at Glenmede, discusses the themes driving sustainable investing today.
- Chris Castro, Founding Director, Executive Vice President, and Chief Sustainability Officer at Climate First Bank, explains how to align your portfolio with sustainability, resilience, and innovation.
- Maria Lettini, CEO of US SIF, shares why sustainable investing is here to stay.
We’d love to hear your thoughts on this topic. Share your feedback or suggest future topics by contacting us at info@earthequityadvisors.com.
Be good. Invest better.
The Earth Equity Team
