Tag: Sustainable Business

2024 GreenBiz 30 Under 30 List of Sustainability Leaders

 

Meet These Rising Stars Fighting Climate Change at Work

Younger adults lead other generations in seeking purpose-driven work: A large majority of Gen Z (86%) and Millennial (89%) workers say that having a meaningful mission is important in their career, according to a Deloitte survey of 22,800 younger workers.

They’ll even “climate quit” when their employers renege on sustainability commitments.

This year’s GreenBiz 30 Under 30 list recognizes the rising stars of sustainability. These are the people who are driving change, at scale, at some of the world’s largest organizations.

The ninth class of the GreenBiz 30 Under 30 were all born on or after March 29, 1994. They hail from the United States, the United Kingdom, Mexico, Brazil and the Philippines.

The GreenBiz editorial team has selected these individuals from nearly 300 nominations submitted in the spring, for their unique and effective efforts to impact the climate crisis at scale.

They are working at corporate giants like BlackRock, Estée Lauder and Whole Foods; startups such as HelloFresh and Circ, and non-governmental organizations including EDF and GRID Alternatives.

Their vocations include making sure that Starbucks serves ethically sourced coffee beans, doubling JetBlue’s sustainable fuel usage and helping drive Zara’s use of recycled fabric.

Their influence is already vast: Assessing climate risk for $2.5 trillion in assets under management at Barclays. Engineering millions of square feet of low-carbon buildings at Gensler, the architectural firm. Setting up the U.S. Department of Energy’s $3.5 billion carbon-removal hubs.

And they’re doing hard, difficult work that often goes unsung, like electrifying truck fleets and home appliances, embedding circularity into food and textiles, and installing renewable energy sources at companies that previously burned oil.

It’s important work, and it’s just beginning. Wish them well — because we’re all going to live in the future they are creating today.

 The 2024 30 Under 30 Honorees List:

 Kayalin Akens-Irby, Head of Growth at Planet FWD in San Francisco

Alex Authie, Associate, Energy and Sustainability at AMA Group in California

Sneha Balasubramanian, Sustainability Specialist at Cisco in Austin, Texas

Raunak Barnwal, Vice President at JP Morgan in London

Ngozi Chukwueke, Africa Technical Associate, Coffee and Farmer Equity Practices at SCS Global Services in Washington, D.C.

Tin Dalida, Chief Operations Officer and Co-founder at Wovoka in Manila

Dan Dinh, Assistant Manager, Product Sustainability at The Estée Lauder Companies in New York

Edward Freer, Sustainability Communications Lead at the London Stock Exchange Group

Hannah Friedman, Founding Principal, Independent Strategic Financial Advisor at Planeteer Capital in New York

Holly Funk, Manager of Energy Performance at Norwegian Cruise Line Holdings in Miami

Vincent Gauthier, Manager, Climate-Smart Agriculture, at Environmental Defense Fund in Boston

Nicoline Good, Associate, Corporate Sustainability at BlackRock in New York

Peter Harrison, interior designer and climate action + sustainability specialist at Gensler in Portland, Oregon

Maile Hartsook, Environmental Sustainability Program Manager at Brown-Forman in San Francisco

Bella Horstmann, Senior Analyst, Sustainability & ESG at JetBlue Airways in New York

Arshiya Lal, Director of Corporate Development at Circ in New York

Andrew Loranger, Senior Analyst, Energy & Sustainability at Host Hotels & Resorts in Bethesda, Maryland

Pedro Alexandre Martins, Senior Sustainable Sourcing Manager at HelloFresh International in Berlin

Kermith Morales Moguel, Impact Manager at United Nations Global Compact in Cordoba, Mexico

Marcela Mulholland, Deputy Director of Partnerships at the Carbon Removal Alliance in New York

Charles Orgbon III, Manager, Climate Change & Sustainability Services at EY in San Francisco

Colton Orr, Sustainable Transportation Program Manager at Gladstein, Neandross and Associates in Los Angeles

Daniel Park, Sustainable Design Specialist at HOK in Ellicott City, Maryland

Sarah Reice, Sustainability Manager at Anthropologie in Philadelphia

Kaity Robbins, Senior Program Manager of Diversion at Whole Foods Market in Austin, Texas

Jess Roberts, VP of Ratings at Sylvera in London

Campbell Weyland, Senior Sustainability Analyst at Lowe’s Companies in Charlotte, North Carolina

Michael Wong, Senior Manager for Environmental Sustainability at Ferguson in Richmond, Virginia

Angelica Wright, Tribal Education and Workforce Manager at the Tribal Solar Accelerator Fund, GRID Alternatives in Orlando, Florida

Christy Zakarias, Climate Risk Vice President at Barclays in London

 

You can read more about each of these young innovators here.

Source: GreenBiz / Trellis

Additional Articles, Energy & Climate, Food & Farming, Impact Investing, Sustainable Business

ASU President Michael Crow Named to TIME Climate 100

Michael Crow named to TIME Climate 100
Image courtesy of TIME Climate 100

In November, Arizona State University President Michael Crow was named to the 2024 TIME100 Climate list of leaders and innovators driving real climate action.

The list includes leaders across a range of fields, from policy to business to education. TIME’s editors spent months vetting names from across the economy. They prioritized measurable, scalable achievements and recent action over commitments and announcements.

Crow is the first university president to be named to the TIME100 Climate list.

He is joined by such fellow honorees as World Bank President Ajay Banga; Claudia Sheinbaum, president of Mexico; Prince Harry, Duke of Sussex; Bill Gates, founder of Breakthrough Energy and TerraPower, among other enterprises; Jennifer Granholm, current secretary of the U.S. Department of Energy; and Gila River Indian Community Gov. Stephen Roe Lewis. This is only the second time the magazine has released its climate list.

The ASU president said the TIME100 Climate honor “is a welcome recognition of our university’s unique approach and impact.”

“We’re not focused on ‘the sky is falling’ or scare tactics — fear only inspires shortsighted, ill-conceived actions,” said Crow, who had been previously honored by the magazine when it named him one of the 10 best college presidents in 2009.

“We’re instead focused on finding solutions and results to some of society’s biggest challenges.”

Crow’s nearly four-decade-long conviction that the world’s leading universities are uniquely positioned — and have full responsibility — to lead in restoring and maintaining our relationship with the planet has driven many of his actions as a leader.

His career path is full of early-stage actions and “firsts,” such as founding Columbia University’s world-renowned Earth Institute (today part of Columbia’s recently formed Climate School) and the Consortium for Science, Policy and Outcomes.

Since becoming president of ASU in 2002, he has transformed ASU into a powerhouse of climate-related action from Hawai’i to Bermuda, from deserts to rainforests and everywhere in between.

Among ASU’s recent innovations:

  • This year, ASU became the first university to require a three-credit sustainability courseas part of students’ general-education curriculum, regardless of major.
  • In February, the university launched the Circular Plastics Microfactory, a first-of-its-kind facility for recycling and remanufacturing plastics, which is expected to divert 550 tons from landfills annually.
  • In April, ASU launched a state-of-the-art coral research and propagation facility— the largest coral nursery of its kind — in Hawai’i, with the aim of restoring 120 miles of reefs off the Big Island.
  • The National Science Foundation selected ASU earlier this year to lead a multi-institution enterprise to confront climate change in the Southwestand spur economic development.
  • The U.S. Department of Energy in 2023 named ASU the anchor institution for EPIXC (Electrified Processes for Industry without Carbon), the DOE’s seventh Clean Energy Manufacturing Innovation devoted to the challenge of fighting greenhouse gas emissions from industrial process heating.
  • Two years ago, ASU was tapped to lead the multiyear Arizona Water Innovation Initiativeto help secure the state’s water supply based on the university’s successful programs in water science, technology, management and law.

The university has been driving innovation in this area for decades. ASU established the nation’s first School of Sustainability in 2006, two years after founding the Global Institute for Sustainability and Innovation, home to numerous programs tackling environmental crises.

Launched about a decade later, the Julie Ann Wrigley Global Futures Laboratory — comprising more than 70 units, centers, programs and initiatives, and five schools, including the School of Sustainability — is a first-of-its-kind entity modeled on the national labs and designed to serve as a “medical center for the planet.” Built on the diverse expertise of more than 855 scientists and scholars, it is the world’s first comprehensive research and education institution dedicated to the empowerment of our planet and its systems.

Additional Articles, Energy & Climate, Impact Investing, Sustainable Business

How Energy-Efficient Windows Transform Residential Properties

 

Above – window installation in a town near Ottawa. Photo provided by Ecoline

In today’s fast-paced world, energy efficiency is no longer a choice but a necessity for homeowners across Canada. With rising household energy consumption, smart home improvement investments are essential. But with so many of them available, where do you start to maximize comfort, reduce energy bills, and contribute to Canada’s sustainability plan?

According to the statistics, energy-efficient windows ranked as the 3rd most-desired home upgrade in 2024 and the 1st when it comes to enhancing energy-efficiency, showcasing their growing importance in residential properties.

This shift underscores how window technology has evolved to not only enhance aesthetics but also drive down energy costs. The numbers speak for themselves: the average Canadian household spends approximately $2,200 annually on energy, with even higher expenses in older, poorly insulated homes.

And with so many different government-backed programs to help homeowners finance energy-efficient upgrades, it’s no wonder replacement windows in BC stand out as a transformative solution.

Energy Efficiency Trends in the Residential Market

Energy-efficient solutions are taking canter stage as homeowners increasingly seek ways to reduce their carbon footprint and save on energy costs. Windows, a key component of any building’s thermal envelope, play a pivotal role in this transition.

Inefficient models can account for up to 25-30% of a home’s heating and cooling energy use; hence, the demand for energy-efficient windows continues to surge due to their proven impact on home comfort and long-term cost savings.

Key Window Trends in 2024:

  • Triple-Pane Windows: These have become a preferred choice among Canadian homeowners. While they are about 15% more expensive than double-pane windows, their advanced insulation properties make them 55% more energy efficient, leading to significant long-term savings.
  • Low-Emissivity (Low-E) Coatings: These microscopic metallic layers applied to glass reflect infrared light, keeping heat inside during winter and outside during summer. Low-E coatings can improve the energy efficiency of a window by up to 30%.
  • Energy Star Certification: Windows with this certification meet strict energy performance criteria, ensuring homeowners receive top-tier efficiency. Energy Star-certified windows have been proven to save up to 12% on annual energy bills.

How Government Programs Stimulate Home Renovations in Canada?

Investing in energy-efficient windows isn’t just a smart move for comfort and cost savings; it’s also supported by various government incentives designed to make these upgrades more accessible. Canadian homeowners can use several rebate and loan programs that encourage sustainable renovations. And while it varies for each province, let’s take a look at some of the most popular options in BC:

  • BC Energy Efficiency Rebate: In British Columbia, homeowners can claim up to $2,000 for window and door replacements. This initiative aims to incentivize upgrades that meet high-efficiency standards and promote the use of certified contractors.
  • Canada Greener Homes Loan: Probably the most sought-after program across Canada is the federal loan of up to $40,000 with 0% interest and a 10-year repayment period. This program is structured to support significant home energy retrofits, including window replacements that adhere to ENERGY STAR standards.
  • Ecoline Green Grant: Companies like Ecoline Windows provide their own initiatives, such as the Ecoline Green Grant, which offers homeowners up to $3,750 in savings on window and door installations.

Upcoming Canada Greener Homes Affordability Program

The Canadian government announced in their Budget 2024 plan the upcoming federal program to help homeowners across the country to continue renovating their homes to keep up with Canada’s sustainability plans to reach “net-zero by 2050”.

The program is supposed to allocate $800M over five years, starting in 2025-26. This government initiative aims to continue supporting energy-efficient upgrades in the residential market, focusing on low- to median-income Canadian households, including tenants.

How to Qualify for Rebates or Loans in Your Region

  • Install ENERGY STAR-Certified Windows: To be eligible for most rebate programs, homeowners need to choose energy-efficient windows that meet ENERGY STAR standards.
  • Home Energy Inspection: Government-backed programs require an energy audit before and after installation to assess the home’s energy profile and identify areas for improvement.

These incentives make upgrading more financially feasible, especially considering that energy-efficient window installations can provide a substantial return on investment. If you are curious about your local options, please check this guide about all window and door rebates in Canada.

Ecoline staff at head office in Calgary. Photo provided by Ecoline
Ecoline staff at head office in Calgary. Photo provided by Ecoline

Are Energy-Efficient Windows Worth the Initial Investment?

Keeping it short – absolutely! High ROI, annual energy bill savings, and maximizing comfort and home value are the ultimate benefits. But if you want to dig into the details, let’s quickly overview the stats. According to the Royal Bank of Canada (RBC) Home Value Estimator, window replacements yield an impressive ~70% ROI, making them one of the top-rated home renovation projects.

While high-end kitchen renovations, for example, can cost between $35,000 to $50,000, premium window replacements range from $7,500 to $10,000, offering a more affordable yet impactful upgrade with all the savings on energy bills (~12%) for the next 25 years (the average lifespan of quality windows) and the estimated increase in property market price, depending on the place of living. Even more so if you consider all the available rebates and loans in your region.

Wrapping Up

Energy-efficient window installations continue to play a pivotal role in transforming residential properties across Canada, offering a blend of economic, environmental, and lifestyle benefits.

With so many benefits and government incentives, investing in modern replacement windows is a powerful way for Canadian homeowners to improve their living environment, reduce energy expenses, and boost property value.

 

Looking to enhance your home’s comfort and energy efficiency with new windows? Visit https://www.ecolinewindows.ca to learn more!

Additional Articles, Energy & Climate, Sustainable Business

Calvert Commemorates 20th Anniversary of the Calvert Women’s Principles

 

Calverts Womens Principles 20 years reportCalvert Research and Management (Calvert) is pleased to announce the 20th anniversary of the Calvert Women’s Principles, the first global code of corporate conduct focused exclusively on advancing, protecting and investing in women. Developed in 2004 with the support of the United Nations, the Calvert Women’s Principles provide a set of standards for companies to measure progress and serve as a tangible indicator for investors to assess the evolution of gender equity in the corporate community.

“Developing the Calvert Women’s Principles was a significant step forward in 2004 and highlights the role corporations play in driving greater equality,” said Jade Huang, Chief Investment Officer, Calvert.

“The Women’s Principles remain both important and relevant today, serving as a guide for companies to advance equity and inclusion across their employee base while also offering investors a consistent framework to measure progress on a factor that influences company performance.”

Calvert research and academic studies indicate that gender diversity is financially material to equity returns for both U.S. and international large-cap markets, both at the board level and when evaluating equitable advancement opportunities.

Ms. Huang continued, “Fully embracing the Calvert Women’s Principles and building an equitable workforce can be a competitive advantage for corporations.”

Implementing the Calvert Women’s Principles may help companies create strong talent pipelines to ensure equity at all levels of employment.

They focus on seven key areas:

  1. Employment and compensation
  2. Work-life balance and career development
  3. Health, safety and freedom from violence
  4. Management and governance
  5. Business, supply chain and marketing practices
  6. Civic and community engagement
  7. Transparency and accountability

Gender equality has advanced significantly in the two decades since the development of the Calvert Women’s Principles but there is still more progress needed. Globally, companies have advanced female representation on corporate boards towards parity, with some regional differences.

In developed markets, large-cap companies generally exceeded the 30% female board representation threshold. Women remain underrepresented on corporate boards in emerging markets with about half the representation seen in developed markets. However, the broader trickle-down effect from increased gender diversity in the boardroom has not taken place as quickly as anticipated.

“Companies across the globe have made considerable progress incorporating the Calvert Women’s Principles and adhering to the basic tenants,” said Ms. Huang. “We see somewhat of a barbell with strong levels of gender parity at the board and employee level but lacking at the executive and senior management levels.”

 Key facts:

  • Women represent 47% of the U.S. workforce, but hold only 25% of senior-level positions
  • The female-to-male earnings ratio was 82.7% in 2023 for full-time, year-round U.S. workers.
  • In 2023, the S&P Global Market Total Index comprised approximately 15,000 c-suite roles, of which women represented 11.8% of those roles.
  • Research shows that closing the gender gap in labor force participation and management in Organization for Economic Co-operation and Development (OECD) countries could raise global economic activity by roughly $7 trillion.
  • The World Bank calculates that closing gender gaps in areas like employment and entrepreneurship could increase global gross domestic product by 20%.

“Company culture is an extremely important variable for success, yet difficult to measure,” Ms. Huang continued. “A culture that values different perspectives as a strength can often point to more positive outcomes. Having a framework like the Calvert Women’s Principles enables a more robust and balanced analysis that drives investment decisions focused on competitive returns and positive change.”

About Calvert Research and Management

Calvert Research and Management (Calvert) is a global leader in Responsible Investing, offering one of the largest and most diversified families of responsibly invested strategies. With over 40 years of experience, the firm seeks to generate favorable investment returns for clients by allocating capital consistent with environmental, social and governance best practices and through structured engagement with portfolio companies. Calvert is part of Morgan Stanley Investment Management, the asset management division of Morgan Stanley.

Additional Articles, Energy & Climate, Food & Farming, Impact Investing, Sustainable Business

Welcome to Global Galactics and The Spark at the Center of the Universe

By Timothy Karsten, Global Galactics

 

Timothy Karsten of Global GalacticsImagine a world where 10,000 families or more come together with one powerful mission: to protect our planet, explore the stars and raise a generation of young leaders who will help build a sustainable, compassionate future for Earth and beyond.

That’s the world we dream of, and it’s a future our planet needs. So, when Cliff kindly invited me to share our story, I was thrilled to tell you about Global Galactics and the incredible journey we’re on.

Global Galactics is more than an entertainment brand — it’s a mission-driven company with a purpose. We’re here to inspire the next generation of eco-conscious, empathetic leaders. Through our eco-friendly products, stories and resources, we’re helping families grow together in ways that make both our Earth and our minds healthier and ready for the future of space exploration.

At Global Galactics, we’re not only looking to nurture a love for Earth but also to inspire curiosity about the vast universe beyond. The galactic side of our brand encourages kids to look up, dream big and imagine a future where they might even explore the stars. With Sparky as their guide, children journey to distant planets and stars, learning that they’re part of a much larger story. Our stories and characters introduce them to the wonders of space, and we hope this sense of cosmic curiosity will inspire them to be thoughtful, courageous explorers — whether they’re discovering a new corner of Earth or looking to the skies for what lies beyond. By fostering an early connection to the galaxy, we’re preparing young minds for a future where Earth and space are interconnected, where their actions on our planet have a positive impact elsewhere.

Sustainability is at the heart of everything we create. From the eco-friendly materials in our products to the nature-inspired themes woven into each story, Global Galactics is designed to help children and families feel deeply connected to our planet. Through Sparky and his friends, we’re offering tools for self-leadership, relationship intelligence and environmental stewardship, empowering kids to become caring stewards of their own lives and the world around them.

This mission was inspired years ago by a spirited Jack Russell Terrier named Sparky, whom I found while living in Santa Fe, New Mexico. Sparky was more than a pet — he was a companion with boundless curiosity, an explorer at heart who brought out the childlike wonder in me. Together, we explored the natural wonders of the Southwest and beyond, from the US to Mexico, Canada, Europe, Asia, and Africa. My wife, Karinna, joined us on many of these journeys, and together, we found ourselves in incredible places, meeting marvelous people and learning from the world around us.

Sparky in Thailand with Timothy and Karinna Karsten, Global Galactics
Sparky in Thailand with Karinna and Timothy Karsten

Sparky and I often visited Teach for America classrooms in the U.S. and Asia, where we shared stories of our adventures, local wildlife and the importance of caring for animals with kids eager to learn. Sparky, in his own way, was a teacher, too — he showed kids what it meant to embrace curiosity, kindness and resilience. He lived a long, healthy life until the remarkable age of 18 years and 10 months, leaving us with an enduring legacy of exploration, compassion and a belief in the power of connection.

After Sparky’s long and joyful life, while spending time on the island of Huahine in French Polynesia, we were inspired by local youth programs to create Global Galactics — a children’s edutainment brand designed to bring families together in a journey of discovery. Partnering with students at the Savannah College of Art and Design (SCAD), we began developing characters and story concepts that bring our mission to life, combining adventure, education and empathy into a brand that inspires the next generation to become stewards of Earth and explorers of the universe.

Our first children’s book, The Spark at the Center of the Universe, invites young readers to join Sparky, the adventurous, galaxy-traveling pup, on an inspiring journey across the stars. Through encounters with creatures as small as an ant and as grand as a whale shark, Sparky discovers the incredible truth that every being is at the center of the universe—and that each of us has the power to protect it. This beautifully illustrated story encourages children to see the special importance in all living things and to become true “Global Galactics” — guardians of our planet and explorers of the wonders of the galaxy. Perfect for curious minds, the story sparks a love for nature, science, exploration and the connections that make our world and galaxy extraordinary.

Beyond the book, Global Galactics expands this mission with original songs that bring big ideas to life through music. Our song “Money Flows” uses a fun reggae groove to teach kids how money circulates through the economy, while “Community Disco” introduces the value of community and how people work together based on shared values and organizing principles. These songs engage kids and families alike, making it easy to learn these valuable concepts together.

Our content also includes Sparky’s Everyday Audio Adventures, a kid-friendly, everyday podcast where Sparky explores topics like community, mindful consumption and the circular economy. Each episode is designed to be short and engaging, offering children an entertaining way to connect with ideas that are foundational to sustainability and good citizenship. Our YouTube channel further expands these lessons, with sing-along videos, doodle-animated stories and educational content that children and parents can enjoy together.

For the founders out there, you know the challenges and joys of building a mission-driven venture. And for parents, we know how tough it is to find content that aligns with the future you envision for your children. That’s why we’re here to offer something unique: a blend of education, entertainment and hands-on lessons for building a better world.

We invite you to join us on this journey as we empower young leaders to look up, look within, reach out, and build a future rooted in sustainability and global citizenship. Thank you, Cliff, and to all the readers of The GreenMoney Journal, for giving us this opportunity to share our vision. Let’s make this a galac-tastic adventure together!

To learn more about Global Galactics, visit our website at www.globalgalactics.com and follow us on social media: Instagram, Facebook and YouTube

 

Article by Leadership expert and traveling adventurer Timothy Karsten who was inspired to create Global Galactics LLC by his own pup, Sparky, and their nineteen-year journey together across twenty-two countries and all across the United States. With a website that chronicled their travels, the pair took to schools in Los Angeles through Teach for America, along with visiting schools in India and Thailand with a film crew. The eye-opening result was a deep understanding of what was missing for kids. Global Galactics was created to make learning fun and entertaining, providing kids with information and tools to build self-esteem and understand themselves and their place in the world. He lives with his wife and creative partner, Karinna, in Coastal Georgia.

Additional Articles, Energy & Climate, Food & Farming, Impact Investing, Sustainable Business

Investing in Women in Leadership: Results Driven, Sustainable Impact Investing

By Patricia Lizarraga, Hypatia Capital and WCEO ETF

 

Patricia Lizarraga of Hypatia Capital and WCEO

When Hypatia Capital started investing in women in leadership, in 2007, there were only 10 women CEOs in the S&P 500. Today there are 50. Why is investing in companies with women who are Chief Executive Officers, considered impact and sustainable investing? Because they bring increased economic output, inclusivity, and performance.

Before we look at what we gain by investing in women in leadership, lets measure what we lose by not including women fully in the economy. Women represent close to 50% of the population but only 47% of the workforce. Every year, McKinsey and Lean In publish the Women in the Workforce report. This research shows that, if women were full participants in the economy, global GDP could increase by $12 trillion by 2025. To reach that higher sustainable growth rate, it is imperative that we develop more inclusive organizations and institutions. How? By having more inclusive leadership.

Are Women More Inclusive Leaders?

Inclusive leadership values and includes people from a variety of backgrounds and perspectives. The data tells us women are more inclusive leaders. Women CEOs have senior leadership teams that are 80% more diverse than men CEOs. Women CEOs have senior leadership teams that are 36% women, versus 20% women in men’s senior leadership teams. While women CEOs have senior leadership teams are two-thirds men, it is clear they are making greater strides in bringing more points of view into the leadership suite.

Hypatia Capital believes this gender-balanced vision at the top trickles down throughout organizations benefiting your sister, your daughter, your mother, your friend. We believe having more women CEOs is the fastest and most certain way to get women more equal opportunity in their workplaces. The data shows women are more likely to be promoted at a firm with a female CEO. But, because women are less than 10% of all CEOs, one’s chances of working at a firm that has a female CEO are low. Yet, an upward sloping career path makes permanence in the workforce more likely. Thus, the impact of a higher proportion of women CEOs is that women will feel more included, be more likely to stay in the workforce and be promoted. More women promoted? Elimination of the “broken rung”? That is impact.

The impact, however, is also to the bottom line. Data shows that companies with diverse leadership teams tend to perform better financially. According to Blackrock, the largest asset manager in the world, here are three key areas:

  1. Enhanced Financial Performance: Companies with gender diversity across all levels outperformed less diverse companies by an average of 1.2% between 2011 and 2022.
  2. Leadership Representation: Firms where middle management mirrors the overall workforce’s gender representation generated 36 basis points higher risk-adjusted monthly returns compared to peers with less diversity in these roles over 2016-2022.
  3. Cultural Impact: Companies with more women-friendly cultures, as indicated by longer average maternity leaves taken, showed an annualized excess return of 1.07% over the benchmark (Russell 1000 Index) over the past four years.

What’s the Fund?: Hypatia Women CEO ETF at the New York Stock Exchange

Hypatia Capital’s Journey to Sustainable Impact Investing

Hypatia started investing in women in leadership in 2007. While there is no single moment that sparked the concept, my one-time client Gilberte Beaux was certainly an inspiration. Having risen from the depths of a typing pool, she went on to be Sir Jimmy Goldsmiths’ COO, and later CEO of Adidas. At the time I met her in 2004, there were only 8 women CEOs in the Fortune 500. She was my first woman CEO client. She was amazing. I had my Jerry Maguire moment: More Female Clients.

In conducting research for the launch of Hypatia Capital, initially a boutique advisory and M&A firm focused on women in leadership, I discovered Golden Seeds, the pioneering early-stage investment company that shared our investment thesis: balanced leadership outperforms. I joined and invested in their first fund. I subsequently learned of Trish Costello’s vision of democratizing venture investing by offering funds with $10,000 minimums. I invested in Portfolia funds as well.

But why wasn’t there a product that was appropriate for the vast majority of investors? A product that had no income or net worth requirement? An investment one could exit easily? Was investing in women in leadership only for the wealthy?

In 2016, State Street launched the SHE ETF to “help address gender inequality in corporate America by offering investors an opportunity to create change with capital and seek a return on gender diversity.” I invested immediately, and still hold shares. But their three top holdings are: Meta, Apple and Microsoft. I believe it is the large cap algorithm that drives allocation, not the women focus.

In 2018, YWCA and Impact Shares launched the WOMN ETF. Again, I am a proud investor. I love their commitment to equality. But again, their large cap orientation makes their largest three holdings: Meta, Apple and Amazon.

WCEO: Only Women CEOs – Because Change Starts at the Top

In January 2023, Hypatia launched the WCEO ETF investing in American public companies that have a woman CEO. The WCEO ETF, the first exchange-traded fund focused solely on public companies led by women CEOs, invests in small caps, medium caps and large caps. Our algorithm delivers the Female Factor by eliminating size and industry. Its investment thesis is that female leaders will outperform. Given the additional obstacles women face in corporate America, as documented by McKinsey, they must be extraordinary versus the “average” CEO to make it to that cohort. Outperformance will come from delivering this Female Factor. In addition, by highlighting the performance of women CEOs, we hope to address the negative pattern-matching that affects both individual investors and the boards who have the all-important function of CEO selection. Arming both with performance data is crucial.

The Democratization of Access to Investing in Women in Leadership

Hypatia’s belief is that democracy and access are key to sustainability and impact. It is this belief that led us to design a product that was accessible to all investors. In fact, today, at approximately $31.00 for one share of the WCEO ETF, one invests 21 cents in every American public company with a female CEO, small, medium or large. The WCEO ETF allows all women to invest in all women in leadership. As far as we know, we are the only public product in the world that allows one to do so.

A Call to Action

The work we do in sustainable, impact investing is about building a better world. We have the chance to invest to reflect our values: equity, sustainability, and impact.

Women have a crucial role to play in this transformation. I encourage every woman to consider how to contribute to this movement. Whether you’re just starting your career or looking to pivot into the impact investing space, know that together we make a difference.

With every dollar we invest, every enterprise we support, and every barrier we break down, we are building a future where finance works for everyone.

 

Article by Patricia Lizarraga, the Managing Partner of Hypatia Capital and the visionary leader behind the WCEO ETF. She is committed to advancing female leadership in finance and business, as well as driving sustainable change through impact investing.

Additional Articles, Energy & Climate, Impact Investing, Sustainable Business

Finding Resiliency Through Designing an Aligned Life

By Jina Penn-Tracy, Centered Wealth

 

Jina Penn-Tracy, Centered WealthAt Centered Wealth, we believe in a guiding principle: the alignment between inner values and outward actions brings a sense of personal wholeness that creates resiliency.

Our mission is to empower clients to make financial decisions that reflect their personal ethics, fostering a sustainable, purpose-driven world.

The journey that led me to impact investment advising has been one of resilience and transformation. It started with a pivotal moment at 19 when I faced a cancer diagnosis. This experience made me see the need for ongoing activism, specifically advocating against environmental and food toxins. This health challenge catalyzed my career, inspiring me to work towards a future where health and sustainability are priorities.

In the 1990s, I cofounded a successful import business. Yet, despite our success, I felt a need to make a more profound impact. By 2004, I transitioned into financial advising, motivated by a vision of what finance could become. I wanted to be the kind of advisor I wished I could find — one who prioritized sustainability, complex planning and social impact. A significant influence in this career choice came from reading The Politics of the Solar Age by Hazel Henderson.

Henderson’s work on sustainability and the interconnected nature of economic systems resonated profoundly. She showed me that finance could be more than a tool for wealth accumulation – it could drive positive social and environmental change. She is the godmother of the impact investing movement and passed away in 2022. Hazel was a prolific writer and thought leader, and her legacy can be found on ethicalmarkets.com. Everyone interested in this field would benefit from reading her works.

Hazel Henderson in 1995. ©photo Dana Gluckstein

Her perspective has shaped our approach at Centered Wealth, where we help clients invest in ways that align with their vision for a better world. We focus on assisting clients to feel empowered and aligned. This concept of “centeredness” has guided my own journey — a synthesis of values and financial choices that fosters clarity and purpose.

Working alongside my daughter, Anya Gage, has been one of the most rewarding parts of my career. Anya shares my commitment to ethical investing, and together we help clients align their financial goals with their values. Anya has extended her focus to planning for non-normative families. As more folks feel free to form the social ties that best suit them, we use the frameworks of financial planning to support their best life plans together.

In addition to my daughter, our team includes Stuart Valentine, co-owner of Centered Wealth, and fellow advisor, Annalisa Clifford Gold. Stuart, a pioneer in sustainable finance since 2000, brings extensive knowledge in social venture capital and community development. Annalisa has developed expertise in guiding clients through significant life transitions that impact them financially. Part of the beauty of founding a company based on values-alignment means that we support each other as human beings and not just as colleagues. The resiliency created through being committed to an ethical framework means we can weather storms together, both personal and market ups and downs. I am deeply grateful for that sense of fortitude.

My personal advocacy has extended beyond finance, particularly in support of fellow trauma survivors. In 2019, I cofounded the Children’s Theatre Alumni Survivors Fund (CTA Wellness) after a lengthy legal battle 16 survivors waged against an institution that housed dozens of perpetrators over decades. This nonprofit provides essential resources for survivors, including counseling, legal assistance, and community-building activities. Founding CTA Wellness was necessary, as many survivors lacked the health or resources to pursue justice in the narrow time allowed to file lawsuits. Providing a platform where they feel supported has been challenging but vital, reinforcing my commitment to social change and systemic support.

The challenges I’ve faced have also strengthened my resolve to inspire other women to trust their instincts, pursue their passions and stand up for what they believe is right.

Throughout my career, I’ve faced obstacles that have tested my commitment, but they’ve ultimately deepened my dedication to creating meaningful change. For women especially, trusting one’s own voice and taking bold steps are essential to making an impact.

The work we do at Centered Wealth isn’t without challenges. Engaging with complex issues — politics, climate change, corporate accountability, and more — can feel overwhelming. These are long-term commitments that require resilience and focus. But it’s crucial not to disengage, no matter how insurmountable these issues seem. Small actions, like voting in local elections or participating in shareholder activism, are meaningful steps toward broader systemic change.

In navigating these issues, self-care is essential. Taking breaks to recharge is necessary to stay focused on our goals. Building a community of like-minded individuals has also been vital; the support of others provides strength during difficult times. Our team meets weekly with a larger community of Impact Investment advisors, sharing ideas, frustrations, and general comradery. Continuing to educate myself on topics like climate science and corporate governance empowers me to advocate for these causes with confidence and knowledge, inspiring others to join the mission.

Living my values is central to my personal life and my work at Centered Wealth. In 2020, my husband and I completed a Net Zero home near our office in Minneapolis, reflecting our commitment to sustainable living. Gardening, spending time outdoors, and sharing life with our spirited dogs keep me grounded and connected to nature. These daily practices remind us of the importance of living intentionally and sustainably, a mindset that drives our work with clients.

On another personal front, I cofounded SYNCRIS in 2019, a climate tech company that aims to enhance microgrid accessibility. This venture has been an exciting step, aligning with my vision for a sustainable future. The hard-won funds received from my legal battles have been transformed into supporting the development of critically needed technology for stabilizing the grid as we add renewable energy. My hope is to inspire others in the finance sector to consider how their investments can contribute to broader social and environmental goals, creating a world where finance benefits both people and the planet.

Every step in my journey reinforces my belief that we can create systems that serve everyone. I encourage folks to reflect on how their choices — financial and otherwise — can contribute to positive change.

Through ethical investing, advocating for survivors, and living sustainably, we can each make a meaningful impact. At Centered Wealth, alongside inspiring partners like Stuart, Annalisa and Anya, we are dedicated to using our voices and resources to create a more equitable and sustainable future for all.

As we face challenges like climate change and social injustice, I invite everyone to consider how they can make a difference within their own spheres of influence. With a shared commitment to a better future, we can build a world where our financial decisions align with our values and create a legacy of integrity, resilience, and purpose.

  

Article by Jina Penn-Tracy, wealth manager, co-owner and co-founder of Centered Wealth. She is passionate about leaving this world a better place. Jina believes that comprehensive planning allows individuals, businesses, and nonprofits to make more ethically aligned and influential decisions regarding the spending and investing of their money. After co-founding a rapidly growing import company in the 1990s, Jina shifted careers in 2004 to become the type of financial advisor she wished she could find; an advisor focused on utilizing the power and influence of money to make positive changes in the world.

Jina has been quoted in Financial Advisory Magazine, The Wall Street Journal, and Investment News as well as local Minneapolis media. In 2020, Jina hosted an event at Climate Week for the UN. Jina and her husband just completed the construction of their Net Zero home walking distance from the Minneapolis Centered Wealth Office. Jina enjoys world-wide travel, gardening and her energetic dogs, Matteo and Guinness.

Centered Wealth and Vanderbilt Financial Group are separate and unaffiliated entities. Jina Penn-Tracy is a registered representative of Vanderbilt Securities LLC and investment advisor representative of Vanderbilt Advisory Services. Vanderbilt Financial Group is the marketing name for Vanderbilt Securities, LLC and its affiliates.

Securities offered through Vanderbilt Securities, LLC. Member FINRA, SIPC. Registered with MSRB. Advisory Services offered through Vanderbilt Advisory Services.

For additional information on services, disclosures, fees, and conflicts of interest, please visit www.vanderbiltfg.com/disclosures

Energy & Climate, Featured Articles, Food & Farming, Impact Investing, Sustainable Business

Investing in Gender Equality Offers a Bridge to a Healthier and More Stable Future

By Margret Trilli, ImpactAssets

 

Margret Trilli of ImpactAssetsIn 1738, the world was a vastly different place. Benjamin Franklin was still early in his pioneering work in Philadelphia; the Ottoman Empire was at war with Russia; and American independence was still decades away.

Fast forward 286 years, and much has changed. We’ve landed on the moon, decoded the human genome and built technologies that can connect people across the globe in an instant. Yet despite all of this progress, a stark fact remains: At our current pace, it will take another 286 years to achieve true gender equality globally. This timeline, laid out by the United Nations, is not just a projection; it’s a wake-up call.

Pursuing gender equality is both a moral and economic obligation. We cannot wait three more centuries to close the gap –the world’s four billion women and girls deserve better. It is a worthy goal on its own merits, but it also has the potential to add $12 trillion in global gross domestic product (GDP), while advancing many other global priorities. Ultimately, a more gender-equal world will foster a healthier, safer, increasingly productive, and more stable future.

For impact investors, the question is not why gender equality matters — it’s how to effectively allocate capital in ways that empower women and catalyze meaningful progress far more quickly.

To be sure, impact investing alone cannot be a panacea for gender inequality, but it is an indispensable component of a larger solution. Gender equality can itself be an impact objective or, for portfolios targeting other impact themes, gender equality can be an awareness that impact investors incorporate into their work.

At ImpactAssets, we focus on three essential areas of need where capital of impact investors can be most effective at driving gender equality:  1) advancing economic inclusion; 2) delivering products and services that improve lives and outcomes; 3) and increasing representation and voice.

Together with our clients and partners, we are driving progress in these areas, and many other gender lens impact investors are scaling up capital flows in similar ways. However, addressing a challenge as entrenched and widespread as gender inequality requires significantly more investment.

Expanding Economic Opportunities for Women

Women around the world continue to face significant barriers in accessing financial resources: from inherent bias to structural discrimination to limited collateral for loans. Despite being key drivers of economic growth, women-owned businesses secure only a fraction of global venture funding, leaving many unable to grow their enterprises and build financial independence. In the U.S. alone, women own nearly 40% of the country’s 33+ million small businesses, but businesses owned by men receive the overwhelming majority of (71.6%) loans.

Although data suggests that women tend to be more conservative in financial decision-making, lenders typically view women borrowers as riskier, thanks in part to modeling that considers the paucity of female versus male borrowers. As a result, women are allocated less credit or denied credit altogether, perpetuating the bias.

In this context, creating pathways to economic inclusion is a cornerstone of advancing gender equality. Impact investors have a unique role to play by championing financial inclusion, access to capital, and home- and landownership for women.

Investment opportunities in this realm take various forms. Of course, impact investors can support women-run businesses with funding. Such a focus may manifest with investments to a lender whose portfolio demonstrates commitment to cultivating women-owned businesses or to a microfinancier working in the sub-niche of very small businesses dominated by women.

Such investments can drive economic inclusion and catalyze profound social transformation. More than just bridging gender gaps, this channel of investment is critical for rewriting the narratives of financial power and providing women with the tools to build their own wealth, autonomy, and resilience. Impact investors can help turn gender gaps into gateways of economic prosperity.

Improving Lives and Outcomes Through Better Services and Products

To create meaningful progress toward gender equality, it’s essential to also target investments in areas that directly impact women’s everyday lives and their long-term prospects, such as healthcare, education, housing, childcare, agriculture, and beyond.

Impact investors can finance career and life services, as well as investments that remove the systemic barriers that prevent women and girls from participating in education and the workforce. For example, investing in access to clean water can dramatically reduce the hours women and girls in developing countries spend collecting clean drinking water for their families, enabling them to work or go to school.

Similarly, persistent disparities in access to healthcare mean women are more likely to experience longer periods of poor health, significantly impacting their daily lives and their economic potential. Further, diseases that predominantly affect women have historically received significantly less funding for medical research that would advance cures, treatments, diagnostics and prevention. Addressing these gaps is critical for engaging women’s full participation in society, as well as the global economy.

Improving women’s lives and outcomes creates ripple effects of positive change, because women’s well-being helps catalyze a host of broader societal benefits – ranging from reduced poverty to improved family welfare. As such, this strategy is a testament to the belief that when impact investors uplift women, they uplift entire communities.

Elevating Women’s Voices in Leadership

Increasing the representation of women in leadership roles is a powerful lever for accelerating gender equality. But it’s about far more than filling quotas — it’s about genuinely valuing women’s perspectives in order to more fully reflect whole communities and inform equitable solutions.

Women often face challenges in employment stability and career advancement. For instance, women are more likely to be vulnerable workers, and their representation diminishes as they ascend the corporate ladder: Only one in four C-suite roles are filled by women, even fewer of whom are women of color.

By investing in funds and companies that promote and amplify women’s voices, impact investors can generate real progress toward more inclusive decision-making and leadership. Team and leadership composition should be important considerations for all potential investments. Ideally, when a fund or company appropriately values women in its work, their teams and their portfolios will reflect the population – especially in senior positions, given the challenges women face in advancement. At ImpactAssets, we strive to practice this principle in our own work: of ImpactAssets’ active portfolio of 1,000+ impact funds and companies, 38% are women-led.

Culture and policy also matter. Impact investors can support companies that accept the disproportionate role women play in bearing children and that design their systems to prevent motherhood from derailing advancement. Progress in this realm will bring diverse perspectives to the forefront, while ensuring that the journey towards gender equality is shaped by those who are most impacted.

Investing in Women Catalyzes Deep, Transformative Impact 

The urgency of the gender inequality crisis is impossible to ignore. At ImpactAssets, we believe that impact investors have a unique responsibility to direct their capital toward areas where it can truly spark transformational change for women and girls around the world.

With an expanding range of tools and a growing understanding of what drives real impact, the moment is right to embed these approaches across the entire landscape of impact investing. Investors today find themselves at a pivotal moment: Primed with knowledge and resources, they have the power to drive progress in ways that can reshape the future.

Note to reader: If you are interested in hearing more about impact investing for gender equality, join us on January 22 for an inspiring conversation with Grameen America’s CEO, Andrea Jung; SoGal Venture’s Co-Founder and Managing Partner Pocket Sun; and ImpactAssets Capital Partners Deputy Chief Investment Officer, Sandra Osborne Kartt, CFA. 

 

Article by Margret Trilli, the CEO & Chief Investment Officer for ImpactAssets and ImpactAssets Capital Partners, which together steward more than $3.5 billion in private impact investments. Margret’s 25+ year career includes executive leadership, investment, operating, strategy and acquisitions roles for companies including Intentional Capital, Barclays Global Investors/Blackrock and Charles Schwab.

Outside of ImpactAssets, Margret is a recognized voice on impact investing and philanthropy. Her leadership has been invaluable to family offices, wealth managers, foundations and corporations. Margret also serves on the Board of Trustees for Natural Resources Defense Council (NRDC) and the Boards of WaterEquity and the Justice Climate Fund.

Margret graduated from The Stanford Graduate School of Business and holds a degree in Economics from University of California Santa Barbara. Margret lives in San Francisco, CA with her husband and children.

Energy & Climate, Featured Articles, Impact Investing, Sustainable Business

How I Found My Way to Impact Investing & Why I Hope More Women Will Join Me

By Jenn Pryce, Calvert Impact

 

Above – Jenn Pryce (middle) with Calvert Impact Chief Investment Officer Catherine Godschalk (left) and Chief Risk Officer Lauri Michel (right)

Jenn Pryce, CEO Calvert ImpactTwo decades ago, Impact Investing found me at a theater in New York.

I’d recently moved back to the US after nearly a decade abroad, first working in investment banking at Morgan Stanley in London and then teaching yoga in Australia. I was living in New York City, searching for what to do next that could marry my finance skills with something more purposeful. I wanted to learn more about arts organizations, so I decided to volunteer at the Public Theater, an iconic nonprofit known for supporting emerging playwrights and incubating productions like “Hair,” and “A Chorus Line” and, most recently, “Hamilton.” It was there that I came across the gap in financing available for arts organizations.

Despite its critical success and its status as a beloved anchor in the neighborhood, the theater was in financial distress. They didn’t own their building, and no one wanted to lend them money. I quickly realized this financing “gap” was more like a gaping hole that all sorts of community organizations – charter schools, health clinics, community centers – fell into.  All these organizations were challenged by getting a loan from banks that didn’t understand their business models or their value propositions. The inability to access capital made owning a building, growing operations, or investing in new programs almost impossible. I was distressed to learn this, but I knew I’d found my calling: connecting capital to community-serving organizations. For the last 15 years I’ve been working at Calvert Impact doing just that.

Calvert Impact is a nonprofit financial institution creating innovative investment programs that drive social and environmental impact. Our platform, reach, and impact have grown significantly over the past decade. In addition to growing our flagship product the Community Investment Note® to over $625 million assets under management, in the last five years we’ve brought multiple new products and partnerships to market, including the Cut Carbon Note®, Access Small Business Program, and the Mission Driven Bank Fund. This spring Climate United, a coalition led by Calvert Impact, Self-Help and Community Preservation Corporation, won a nearly $7 billion award from the Environmental Protection Agency’s National Clean Investment Fund.

Calvert Impact is unique in a number of ways – we’re a nonprofit investment firm, we invest around the globe and across multiple sectors, we have a nearly three decades-long track record, and we have extremely accessible products with minimums as low as $20 1, meaning everyday investors can participate.

We also stand out in another way that is often overlooked: we are one of only 18%2 of all financial firms managed by women. And not only is Calvert Impact led by a woman, 80% of our senior leadership team are women. Although a minority of financial firms are led by women, the good news is that this number is growing and projected to be 21% by 20313. But that growth isn’t fast or good enough.

When impact investing focuses on women, it’s typically as beneficiaries of capital – and that’s very important. More than 10%4 of women globally live in extreme poverty and women are disproportionately affected by poverty due to lack of access to capital, opportunities for education, and discrimination in the workplace amongst many other factors. Deliberately investing to provide women with access to these critical resources is essential to creating a better world for all of us.

But I want to encourage impact investing to be equally thoughtful in getting women into roles managing and deploying capital as well. I often think of the work we’re doing in impact investing as providing a “demonstration effect” for the broader capital markets, proving that you can earn a financial return while also creating the social and environmental solutions communities need, and normalizing what we and our impact partners have been doing for decades. We can also normalize women as leaders of financial firms and work to ensure that there are women at every professional level of impact investing organizations, seeding a strong pipeline for the next generation of finance leaders. Firms like Quona Capital led by Monica Brand Engel, ImpactAssets led by Margret Trilli, and Anthos whose impact investing strategy is led by Dimple Sahni are setting great examples.

It’s especially important to include more women in finance as we transition to a clean energy economy. Investments to adapt to climate change and develop low-carbon technologies will generate trillions of dollars of investment and millions of new jobs over the next decade. Ensuring women are at the table making these investments and are part of the wealth building story needs to be the legacy of this generation of leadership. And the data indicates that they’ll be good at it too – women overall make better investors and generate higher returns when making investment decisions at financial firms, outperforming men by 1.8 percentage points annually5.

So, for women looking to break into impact investing, or who are working in impact investing, here’s my advice: the time is now. Get started by engaging with local networks like – WISE (Women Investing in the Sustainable Economy) or national and global networks like – GIIN (Global Impact Investing Network) and – US SIF (The Sustainable Investment Forum).

There are great opportunities emerging and we need leaders who can create a different ending to the typical story that accompanies extreme economic transition where wealth becomes more concentrated amongst a small number of winners. We need you to help us create a better future: join us.

 

Article by Jennifer Pryce, CEO of Calvert Impact, a global nonprofit investment firm. Under her more than 10 years of leadership the organization has tripled the size of its flagship Community Investment Note – which supports impact funds around the world and launched multiple new products, including the Cut Carbon Note, an asset backed security for building decarbonization; Access, a program that leverages government funds with private investment dollars to provide access to capital for the country’s smallest businesses; and the Mission Driven Bank Fund, a growth capital fund for minority-owned banks.

Most recently, Climate United, a coalition lead by Calvert Impact, Community Preservation Corporation and Self-Help was awarded $6.97 billion to invest in U.S. energy and climate sustainability initiatives through the federal National Clean Investment Fund.

Jenn began her career in the Peace Corps before working for Neuberger Berman, the investment banking team in Morgan Stanley’s London office, and Nonprofit Finance Fund, a Community Development Financial Institution. Jenn studied engineering at Union College and holds an MBA from Columbia University.?She currently serves as a lecturer at Oxford Saïd School of Business and is a board member of UNICEF USA Impact Fund for Children as well as a member of the Advisory Board of Ecofin and the Operating Principles for Impact Management.

Footnotes:

[1]  https://calvertimpact.org/investing/community-investment-note

[2]  https://www.weforum.org/stories/2024/06/women-shape-influence-revolutionize-financial-markets/

[3]  Ibid

[4]  https://www.unwomen.org/en/what-we-do/economic-empowerment/facts-and-figures

[5]  https://www.weforum.org/stories/2024/06/women-shape-influence-revolutionize-financial-markets/

Energy & Climate, Featured Articles, Food & Farming, Impact Investing, Sustainable Business

A History of the Women who Nurtured the Roots of CDFIs

By Amy Domini, Domini Impact Investments

 

Trailblazing women mentioned in Amy’s article – (L to R, top row: Katherine Graham Peden, Patricia Harris, Sr. Corinne Florek; bottom row: Nancy Andrews, Julie Eades, Kirsten Moy)

Amy Domini of Domini Impact InvestmentsMy personal interest in CDFIs began with the tale of a woman.

Early in my career, I had the chance to join a panel discussion that changed the trajectory of my life in advocacy for ethical investing. The speaker before me was named Chuck Matthei. He was an unpresuming looking man who had started something called the Institute for Community Economics. He started quietly, “I would like to share with you the story of Maria and her eleven dependents, living in squalor, in Cincinnati. I’d like to convince you to help her out with a loan.” His words helped me to understand that my own message was nothing if my work did not directly affect the lives of Maria and her dependents.

The Early Seeds of CDFIs were Planted and Nurtured by Trailblazing Women

The roots of modern community development financial institutions (CDFIs) stretch back to the late 1960s, to the racial riots that had rocked America, causing the Lyndon B. Johnson administration to commission a group to study the sources of unrest. The National Advisory Commission on Civil Disorders ‘discovered’ that racism had starved many low-income neighborhoods by denying access to capital. Our nation was stunned but motivated to act. On April 28, 1968, the National Council of Churches announced its Investment Program for Ghetto Community Development. On June 5, 1968, the Episcopal Church announced its decision to start a Ghetto investment program, and five days later the New York Urban Coalition followed suit. Life insurance companies began their “social investment” programs and invested primarily in affordable rental properties in hollowed-out communities. These were top-down initiatives, reliant on the funding of a single entity.

Only one woman had been named to the Commission, Katherine Graham Peden, was later one of the first women to join a Fortune 500 company’s board of directors. The committee’s efforts led to the creation of the Community Development Block Grant (CDBG) program, a vital source of funding enabling state and local governments nationwide to develop affordable housing and provide essential services to improve the health and prosperity of low- and moderate-income communities.

President Jimmy Carter had tasked HUD secretary Patricia Harris to head a policy group tasked with addressing the credit and wealth inequities the race riots had so starkly revealed. Harris’s own career broke many barriers, as the first Black woman to hold any cabinet position (she held two), to serve on a Fortune 500 company’s board (she would serve on four), and to be Dean of a law school. One of the group’s core initiatives was to create a budget to fund Community Development Credit Unions. This was soon enhanced by the 1977 Community Reinvestment Act, which established the mechanism for larger banks to invest in the poorest neighborhoods, even if they did not have branches there. The strength of borrowing from the many to lend to the many was recognized. Top down do-good efforts continue, but with a dynamic new partner — the modern CDFI.

Women in the Movement

Soon, entities that borrow from many in order to come up with the funds to lend to those in need began to take on new forms. In addition to banks and credit unions, non-profits began to borrow and make loans. While tiny and few in number, in Chuck Matthei they nonetheless found a voice. He became the Johnny Appleseed of the Community Development Loan Fund concept, convincing them to band together and learn from one another as a fledgling coalition. On October 16, 1985, when the few initiatives dedicated to borrowing from the many and lending to the poor met together to strengthen each other, a truly powerful movement for community investing was born.

The National Association of Community Development Loan Funds (NACDLF), as it became known, was founded a year later, and soon I was asked to serve as a board member, where I represented investors. Over the next few years, we grew to 50 lending organizations, always sticking to a few simple standards, worth repeating here:

  1. Our members were intermediaries, borrowing to lend. Member mission statements specifically stated the goal of economic justice.
  2. Member boards would be made up one third by people with technical stills that were needed, one third by those with access to sources of capital and one third by those representing or advocating for the borrowers.
  3. Members were subject to in-depth peer reviews

Early leaders in the CDFI field included Sr. Corinne Florek, a member of the Dominican Sisters of Adrian, MI. She brought the nuns to the table and became a spokesperson for economic justice. Joan Shapiro from South Shore Bank crisscrossed the nation advocating for and raising funds for the model, which her bank took a leadership role in shaping. Nancy Andrews, who had been the Deputy Director of the Ford Foundation’s social investment portfolio, worked in the Clinton administration Departments of Treasury and HUD to head its Low Income Housing initiatives, and then helped grow the Low Income Investment Fund over 30 years from $35 million to over $1 billion in assets. Julie Eades of New Hampshire Community Loan Fund tirelessly reminded the industry that not all poverty was urban, and that multiple investment and lending models were needed to address it.

The Federal Program Begins

One early leader deserves a special call-out. A self-described nerd, Kirsten Moy oversaw the Social Initiative Investment Department at The Equitable Life Assurance Society. As such, she was managing a budget unimaginable in scale by the community loan funds. Her willingness to partner with the small hardscrabble peers was noted. On January 26, 1995, President Clinton announced his intention to nominate Kirsten Moy as the first administrator of the new federal program within the Treasury Department, the Community Development Financial Institutions Fund. At the Rose Garden ceremony where most of the above listed women, myself included, were present, it felt like witnessing a miracle.

The year before Newt Gingrich managed a takeover of Congress. Target number one was the CDFI Fund. Kirsten managed to steer $35 million out to the network against great adversity, and she and her successors protected the program year after year. The community investing movement’s sprouts and saplings were nourished by this new flow of federal funds and sprung up within the broader financial canopy. Between 1994 and 2024, CDFIs originated over $22 billion that supports 564,000 quality jobs, 105,000 units of housing and over 151,000 community health clinics, nonprofits, daycare centers, job training programs, and more.

The fact that today our nation has a healthy CDFI network makes financial services accessible and economic prosperity possible for millions. NACDLF, now known as Opportunity Finance Network, which is now celebrating 40 years, and its members have distributed $111,087,489,003 over those four decades. Behind the figures are million new jobs and over 800,000 new businesses in addition to the housing and community services provided to millions. Further, just this past year, CDFIs received roughly $16 billion in federal grants for the development of clean energy, decarbonization of transportation and the built environment and pathways to a clean energy economy by and for disadvantaged communities. All this grew from an initial disbursement of $35 million, thoughtfully handled, from the US Treasury. And the women are still strong in support. OFN CDFI’s women’s network has 1,600 members in 15 local chapters.

Community Development Financial Institutions are an essential component in bending towards justice, and women were essential architects of the field.

 

Article by Amy Domini, Founder and Chair of Domini Impact Investments (“Domini”). She has been a leader and innovator in the development of impact investing for over 30 years. Widely regarded as one of the world’s eminent authorities in the field, she was named to Time magazine’s list of the world’s 100 most influential people in 2005.

 Ms. Domini began her career as a stockbroker and became especially interested in working with clients that were concerned with ecological sustainability and universal human dignity. She co-founded KLD Research & Analytics and, in 1990, was instrumental in the launch of the Domini 400 Social Index*. She later co-created the Domini Impact Equity Fund. Ms. Domini serves as a voting member of Domini’s Impact Review Committee and Standards Committee. She also serves as co-Portfolio Manager for the Domini Impact Equity Fund, Domini International Opportunities Fund, and Domini Sustainable Solutions Fund.

 Ms. Domini was acknowledged with the Clinton Global Initiative citation for innovation and finance. She has also received an honorary Doctor of Business Administration degree from Northeastern College of Law, an honorary Doctor of Laws degree from Flagler College, and an honorary Doctor of Humane Letters from Yale University’s Berkeley Divinity School. Ms. Domini was named to Directorship magazine’s Directorship 100, the magazine’s listing of the most influential people on corporate governance and in the boardroom, and Barron’s selected her as one of the 30 most influential people in the mutual business. In 2009, she was named to Time magazine’s list of 25 “Responsibility Pioneers” who are changing the world.

 Active in her community, Ms. Domini is a board member for the Center for Responsible Lending. She is also a past board member of the Church Pension Fund of the Episcopal Church in America; the National Association of Community Development Loan Funds, an organization whose members work to create funds for grassroots economic development loans; and the Interfaith Center on Corporate Responsibility, the major sponsor of shareholder actions. A frequent guest commentator, Ms. Domini has appeared on CNBC’s Talking Stocks and various other radio and television shows.

 Ms. Domini holds a B.A. in international and comparative studies from Boston University and holds the Chartered Financial Analyst designation.

 * Now known as the MSCI KLD 400 Social Index, owned by MSCI, Inc. MSCI and Domini Impact Investments LLC are not affiliated.

 Select publications: Ms. Domini is the author of Thoughts on People Planet, & Profit (2021), Socially Responsible Investing: Making a Difference and Making Money (Dearborn Trade, 2001) and The Challenges of Wealth (Dow Jones Irwin, 1988), and a coauthor of Investing for Good (Harper Collins, 1993), The Social Investment Almanac (Henry Holt, 1992), and Ethical Investing (Addison-Wesley, 1984).

Featured Articles, Impact Investing, Sustainable Business

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