Diversity of a company’s leadership team is a highly material variable that should be assessed and factored into a prudent investment process. It’s one of many variables that should be analyzed to create a holistic picture of a company’s risk and opportunity profile. First and foremost, how and from where, does a company derive its revenue stream must be evaluated as well.
I am hearing loud and clear from our Ellevest community on their desire to help each other during this crisis. Some of us will donate our time, others our money. I think there’s another thing to consider doing: continue to shift capital to investments that are better for women. Because as we come out of this crisis, the same global issues that existed before will exist afterward.
Barron’s decision to recognize and honor influential women in finance comes at a time when business institutions themselves have begun to realize that their long-term competitiveness, and the health of the capital markets, require remediating the industry’s gender gap. In the financial world, men have generally made more money than women and dominated management.
The publicly available online database for impact investors, family offices, financial advisors and institutional investors features a diversified listing of private capital fund managers delivering social and environmental impact as well as financial returns. And new for 2020 is an Emerging Impact Manager category
Within the impact investing community, the value of gender diversity as an investment evaluation screen is rarely questioned because we know a secret that mainstream private equity and venture capital investors have failed to identify. We’ve discovered that investing in women-led companies is not only exceptionally impactful, but it is also an excellent financial strategy.
Climate change is a story that encompasses everyone. It’s an equal opportunity wolf at the door. But, as is the case with diversity in almost every pursuit, more diverse groups bring more to the table, and considering that climate change is the one of the most important problem humans must solve, diversity has a positive contribution to make.
Investing to promote gender equality and advance the socioeconomic standing of women is a leading priority of many sustainable investors. The US SIF found that at the start of 2018, institutional investors considered “gender lens” as a criterion in $868 billion of investment assets, doubling since 2016.
Risk assessment is a ubiquitous tool used to understand the impacts of investment. What past assessment tools have lacked, however, is a complete understanding of Indigenous women’s experiences of life in their communities. We are recalibrating the lens to more aptly account for Indigenous women’s economic and social wellbeing.
Last Year, the Sierra Club Foundation embarked on an intentional effort to partner with tribes not only to defend the environment from the extractive industry but also to invest early capital into clean energy projects that advance social justice outcomes. We established a new High Impact Investment Fund within our broader investment portfolio.
My journey understanding SRI and how to implement it within Indian Country has been a captivating and everchanging learning experience. This journey led me to meet many inspiring people that have dedicated their lives to the SRI beliefs. Their commitment and enthusiasm have kept me moving forward to help solve this puzzle for my tribe.
