by Suzanne Bigel of Catalyst at Large and GenderSmart
When I started investing, it was in companies making sustainable food, sustainable packaging, and products that would reduce the amount of toxins in the environment. Soon after, I began to invest in climate solutions such as clean energy including solar, wind, and water. Early on, I joined Toniic’s 100% impact network, for investors who are committed to using their capital for impact across every investment.
Investors who opt for a sustainable approach are aligning themselves with some of the world’s most powerful growth trends. But this can also inhibit diversification. Applying multi-asset perspectives can address these problems by balancing portfolio risks to improve risk-adjusted return potential.
“Should a private foundation be more than a private investment company that uses some of its excess cash flow for charitable purposes?” This was a central question pondered by the Heron Foundation’s Board of Directors nearly 30 years ago as they considered how best to use the Foundation’s assets to promote its mission of helping people and communities help themselves.
Donor advised funds (DAFs) numbered roughly one million accounts hosted across 1,000 community foundation and nonprofit sponsors, with $160 billion in assets at the end of 2020. With a compound annual growth rate of 17% over the last five years, DAFs are growing much faster than private foundations as a storehouse of philanthropic assets. And, historically they grant more than 20% of assets each year. But what about the remaining philanthropic capital? Where does it sleep at night?
by Debra Schwartz, managing director for impact Investing, MacArthur Foundation
Over the past several years, the global impact investing field has expanded like never before. Looking ahead, it is worth considering what impact investing’s further growth and mainstreaming could mean for philanthropy and foundations and the dynamic role they have long played.
Informed by almost 40 years and more than $700 million of impact investing, the John D. and Catherine T. MacArthur Foundation sees three main ways that philanthropy should continue to engage.
Merck KGaA, Darmstadt, Germany, a leading science and technology company, today announced a $20 million commitment to CNote, a technology-based investment platform. The investment will support economic growth and opportunity in communities across the U.S. by providing capital to support BIPOC-owned (Black, Indigenous, and people of color) and women-led small businesses.
by John Streur, CEO of Calvert Research and Management
As we look forward to the next 30 years, we believe that capital markets are on the precipice of an increase in the impact of corporate environmental, social and governance (ESG) performance on security prices. We expect a corresponding acceleration of capital deployed to solve the environmental challenges we face today, such as excessive greenhouse gas (GHG) emissions and plastic pollution. We also expect substantial improvement in corporate diversity, equity and inclusion performance.
In light of my forthcoming retirement in December 2022, I am especially pleased to be included in this 30th anniversary issue of GreenMoney. It has been a tremendous privilege to be embedded in the evolution of ESG Investing for 50 years, first at ICCR and then at Boston Trust Walden.
