How Sustainability, Integrity and Innovation are Driving GSDFuel’s Mission

Over the past several years, the global impact investing space has expanded like never before. People want to align their investments with their passions, interests, and values.

This realization, coupled with a passion for innovative technology and corporate transparency, led? Dan Kelly ?to found GSDFuel . “It’s no secret that we need to do a better job of caring for our planet, but in recent years, ‘renewable’ and ‘clean energy’ have become buzzwords that oftentimes don’t correlate with a company’s real impact in the world,” Kelly explains.

“There are a lot of companies with proven technologies that are making a difference — not just on paper, but in practice. People want to invest in companies that align with their values, and they shouldn’t have to sacrifice returns in order to do that.”

Industry trends and developments

A recent survey from?NerdWallet?shows that the majority of investors want to practice socially responsible investing. Almost half of those people identify environmental impacts as the most important issue.

So why, then, do only 23% of investors actually align their money with their values?

1. Skepticism

How do you know that your investment makes a real, tangible difference in the world?

At a time when greenwashing scandals are commonplace, it’s no wonder that people question a company’s claims regarding sustainability and environmental impact. ESG metrics were designed to mitigate this concern by measuring performance indicators of a business’s operations with environmental, social and governance issues to help determine its performance and potential risks.

“ESG is more of a procedural approach to how a company operates versus actually having technology that makes an impact. Theoretically, a positive ESG rating correlates with a high level of sustainable and ethical business practices. But talk is cheap. I want to see real action and impact,” Kelly explains.

ESG scores have always been complicated and inconsistent. Because there is?no standardized system?in place, many companies self-report ESG information and enlist the services of independent research firms to analyze the data. These firms vary in their ESG criteria, algorithms, and analytical methods, which often results in discrepancies over a company’s ratings and overall ESG performance.

“As an investor, it’s often hard to determine if a company’s sustainability efforts are authentic or if they’re simply the result of a well-designed public relations campaign. It’s critical that investors look beyond a company’s public persona to see their actions related to sustainability,” Kelly says.

2. Fear

Do you have to sacrifice returns for an investment that aligns with your values?

In the past, the overall perception was that investors had to choose between sustainability and financial returns. It was an either-or scenario, but that’s no longer the case.

In a?recent study, Morningstar analyzed the performance of sustainable funds over a 10-year period and determined that the majority delivered higher returns than their equivalent conventional funds. Researchers also noted that sustainable funds historically demonstrated greater resilience than their broader market peers during downturns, suggesting a lesser impact from the volatile price of oil.

Kelly explains, “There is an incredible amount of real technology that is available to drive sustainability across a variety of industry sectors. Many investors and institutions know this but are scared away from supporting these companies as they are often poor investments with no sign of liquidity, dividend payments, or governance requirements. GSDFuel is shifting that landscape.”

Bridging the Gaps

Transparency and Due Diligence

Due diligence is important when evaluating any potential investment, but as Kelly describes, it’s even more so when investing for impact. “Due diligence is critical. There are a lot of companies with proven technologies that are making a real difference in combating climate change, but there are also a lot of companies that are misrepresenting their sustainability efforts. Investors need the ability to cut through the greenwashing noise and get to the truth.”

Kelly is no stranger to asking questions. He began his career in the FBI and has been a Certified Fraud Examiner since 2014. “Honesty and integrity are important to me. At GSDFuel, we take the due diligence process very seriously. We require our clients to undergo annual due diligence, governance, and transparency requirements that match, or exceed, public company disclosure requirements. If there are red flags with a company’s technology, financials, or management teams, we don’t accept them as a client. Period.

“GSDFuel is not a broker dealer. We simply want to see the world changed because of our clients’ incredible technologies. We aren’t paid a percentage of what we raise. We’re not capital raisers or placement agents. We’re advisors. And if our clients fail, we fail.”

Securitized Profits and Real Impact

GSDFuel is bridging the gap between Traditional and Digital Finance by developing private securities as standardized plug-and-play alternative investments that are quickly liquid, dividend-paying, asset-backed, and non-dilutable.

“Traditionally speaking, when people want to invest in the Clean Tech space, the company financials just aren’t strong. There’s a large R & D expense. Plus, the concept of a dividend payment is abstract, meaning that there’s no actual cash-producing dividend for these companies by default,” explains Kelly.

GSDFuel is directly attacking those challenges by making a dividend-producing instrument that is based on the company’s profit stream rather than equity shareholder decisions. This unique structure puts the power back in the hands of the investors rather than only in the hands of equity shareholders.

“Through GSDFuel’s proprietary process, we design and deploy securities that not only create incredible growth opportunities for investors but also for the company and its founders. In short, whenever there is a finite supply available of anything, mixed with a strong demand, the market is willing to pay more for that item. This logic directly correlates with the net present value of our clients. The company is almost always the largest shareholder of the outstanding total supply — similar to public companies. This means that the company treasury is elevated as the underlying share price increases on the ATS. When this happens, the entire ecosystem is rewarded as the company is producing a greater net asset value.”

Kelly continues, “These companies have real client contracts and/or offtake agreements that just need capital to launch or expand operations.

“We have clients ranging from waste-to-energy companies creating a drop-in diesel fuel, to wastewater remediation cleaning municipal wastewater, to the most advanced solar technology in the world that can convert buildings into a self-powering ecosystem.”

In the midst of the current climate crisis, it’s difficult to imagine a world where all water is clean and safe, trash is converted into biofuel, and solar technology is available everywhere. The Paris Agreement calls for global emissions to be halved by 2030 and at net zero by 2050. To many people, those targets seem almost impossible. However, GSDFuel clients are changing the world in?real time. Fully vetted Renewable Energy companies with proven technologies, strong customer demand, and dividend-paying securities. That is the ultimate definition of “impact investing”.

About GSDFuel

GSDFuel is a global advisory firm that focuses on enabling sustainable innovation around the world. Recognized as a pioneer in the finance industry, GSDFuel designs and deploys SEC compliant securities on behalf of private Renewable Energy companies worldwide. GSDFuel is bridging the gap between Traditional and Digital Finance by developing private securities as standardized plug-and-play alternative investments that are quickly liquid, dividend paying, asset-backed, and non-dilutable. All clients are highly vetted, demonstrate strong customer demand, and have passed stringent screenings of their people, processes, and technologies. GSDFuel and its clients are focused on leading highly profitable organizations guided by a common goal of protecting Profit, People, Planet, and Purpose. For more information, visit?https://gsdfuel.com/?or follow @GSDFuel on LinkedIn, Twitter, and Telegram.