This webinar is part of IEN's Investing in Racial Equity Series
Date: December 15, 2020, 1:00 p.m. ET
It is abundantly clear how investments in private prisons, or lack of investments for entrepreneurs of color, affect racial justice outcomes. But what about all the other investments in a portfolio? In this session led by Andrea Armeni, Co-Founder and Executive Director of Transform Finance, we will focus on some of the more difficult-to-see ways in which endowments are inextricably linked to outcomes that negatively affect communities of color. Transform Finance, along with other experts in the field, will lead us into conversation to argue that capital has a long way to go in being a true ally – or even just not being a source of harm – for communities of color, and this starts with identifying where race shows up in a portfolio in less obvious ways. Panelists will provide a look at some examples that tie seemingly neutral investment decisions to harmful practices that exacerbate issues like the racial wealth gap, job quality, education, housing, and health. We will discuss some of the real actions investors can take – and also try to get some ideas from the audience on obstacles to this approach.
Select the topic that you're interested in learning more about and browse through the list of curated resources on social equity investing.
At Impact Shares we invest in change. It’s why we’re committed to changing the world of impact investing, one socially conscious ETF at a time. At Impact Shares, we help organizations translate their social values into an investable product that is traded on the NYSE. Being a part of our ETFs means committing to an evolving set of criteria, defined by our non-profit partners, to ensure ongoing alignment of corporate behaviors with social values. With all net profits going directly back to these non-profit partners, together we’re making money go farther and do more. Creating an impact that is both reflected in portfolios and felt in the world all around us.
Our economic system's prioritization of short-term returns over long-term value creation has exacerbated the issues of climate change, racial injustice, and widening economic inequality. Intentional Endowments Network encourages and supports higher education institutions to adopt long-term investment strategies that create an equitable, low-carbon, and regenerative economy.
Higher education and other social purpose institutions are making critical choices every day about how to operate in a society and economy facing multiple intersecting crises. The higher education sector educates 20 million students per year in the US, who are society’s future leaders and professionals. It helps solve current problems, anticipate tomorrow’s challenges, and serve as a model in all of its actions, including endowment investing.
Our goal is for the 2,000 higher education institutions, totaling $650 billion in endowment assets and $890 billion in retirement funds, to invest in ways that accelerate the shift to an equitable, low carbon, and regenerative economy. We are also working to ensure higher education institutions develop the next generation of leaders committed to this type of economy through student managed investment funds and sustainable investing curriculum.
The Intentional Endowments Network is a non-profit, peer-learning network advancing intentionally designed endowments – those that seek to enhance financial performance by making investments that advance an equitable, low carbon, and regenerative economy. Working closely with leading organizations, the network engages leaders and key stakeholders from higher education, foundations, business, and nonprofits. It provides opportunities for learning and education, peer networking, convening, thought leadership and information exchange around a variety of strategies (e.g., ESG integration, impact investing, and shareholder engagement).
IEN is committed to making diversity, equity, inclusion and justice (DEIJ) part of the culture and the strength of our organization and work.
Our programming goals include dismantling racism and supporting the careers and professional development of traditionally marginalized or underrepresented groups to help create a more equitable and just society, aligning with the mission of the organization. Read our full DEIJ Statement on the Commitment to DEIJ page.
Read about IEN's history.
IEN is an initiative of The Crane Institute of Sustainability, a tax-exempt 501(c)(3) non-profit.
For more on what the Network has accomplished, see IEN's Latest Impact Report.
IEN is pleased to partner with Confluence Philanthropy to support the Belonging Pledge. Please see the details below, and consider making this easy but powerful commitment to put racial equity on the agenda of your next investment committee meeting. For individuals who attended college or university, please consider sending this opportunity to your alma mater's investment office.
BACKGROUND:
The events of spring 2020 will be chronicled as the next milestone in the fight for racial justice and equality. A global pandemic, resulting in unemployment for 40 million Americans, followed by yet another brutal death at the hands of police officers set off a wave of protests and civil unrest in more than 75 U.S. cities
In response, Confluence Members and partnering investor networks launched a pledge for racial equity called the Belonging Pledge, #2020belongingpledge.
The commitment recognizes that racial equity belongs throughout the investment process, in the investment committee meeting, and, ultimately, in how decisions are made about capital deployment. Achieving racial equity is typically presented as daunting, perhaps even unattainable for some minds. But change is possible with sincere commitment, clear goals, and measurable benchmarks. Most importantly, change must begin with a shift in the prevailing racially homogenous culture and exclusivity that ultimately perpetuates racial bias and inequity within the investment industry and investors’ portfolios.
CALL TO ACTION:
“We commit to discussing racial equity at our next investment committee meeting. We will move our agenda forward on this. We will share our next steps and results (perhaps privately), so that we can help to identify industry-wide barriers and the technical resources required to advance the practice of investing with a racial equity lens.”
If you would like to sign onto the pledge, please email us at [email protected].
SIGNATORIES:
We encourage endowments and other investors to join over 100 signatories and partners listed below representing $1.88 Trillion in AUM in committing to the pledge and putting racial equity on your investment committee agenda. If you would like to sign on to the pledge, please email us at [email protected].
This is your peer learning and professional development platform designed to generate knowledge exchange, and the co-creation of resources covering key innovations and trends in endowment management. The Network generates resources and convenings focused on key trends and practices with the guiding principle of generating profits by investing in a thriving, regenerative, and inclusive economy.
We encourage you to connect with others and suggest new activities or projects that would be helpful to you and your organization’s work related to expanding sustainable investing. We invite you to share your feedback on IEN’s activities on an ongoing basis with the IEN team and via the annual membership survey.
New to IEN?
Please see the Quick Action Guide For New Members to help you get started.IEN Members are invited to apply to join, or to nominate a prospective representative to the Steering Committee (convenes twice per year to provide strategic input and guidance) or the Executive Committee (a subset of the Steering Committee that meets more frequently and actively advises on IEN’s activities).
Plan to participate in upcoming events hosted by IEN or take advantage of the discounted access to other conferences and meetings across the country through our partnerships with other conveners.
Renew your membership with IEN here and continue to grow the network's impact.
Questions? Please see the FAQ sheet for more details or contact us at [email protected].
The 2020 Higher Education Climate Leadership Summit will be held in partnership with Second Nature from February 23-25, 2020 in Atlanta, Georgia.
The Higher Education Climate Leadership Summit is the largest national gathering of higher education presidents, chancellors, trustees, and other senior leaders working to accelerate climate solutions through all aspects of institutional activities -- education, research, campus operations, community engagement, and endowment investing.
Read a recap of the 2020 summit here or watch recorded sessions:
For more details on the 2020 Summit, and to learn about future Summits, please visit the Summit website: www.HigherEdClimateSummit.org
On September 6th, 2019, IEN organized the ESG & Community Impact Investing Roundtable at the Haas School of Business at the University of California, Berkeley. The half-day event brought together a diverse group of endowment decision-makers, investment firms, nonprofit leaders and other stakeholders looking to enhance environmental, social, and governance (ESG) integration into their investment process to positively impact communities near their campuses and around the world.
Read moreIntentionally Designed Endowments Roundtable
ESG & Community Investing
Berkeley-Haas, September 6, 2019
ACTION PLANNING SESSION OUTCOMES
Below please find the ideas for action and continued conversation that emerged from the closing action planning session at IEN’s ESG & Community Investing Roundtable at Berkeley-Haas on September 6th, 2019.
For those who proposed each idea -- if you would like to continue the conversation via email and/or by convening a conference call with the others who added their names on post-it notes, please email the group listed under your idea and copy Kaede Kawauchi ([email protected]).
If you are interested in one of the groups, and your name is not included on the list, please let us know and we will add it and connect you with the person who proposed that group. (*please note: some of the post-it notes fell off the board before we had a chance to take pictures, so please double check that your name is included under each group in which you are interested!)
Intersection between Opportunity Zones and green bonds as well as indigenous rights
Investing in cooperatives that are led by people of color
Partnership between universities and investment managers
Connecting university endowments to campus initiatives and programs
Connecting university endowments to surrounding communities
Centralized due diligence + Impact Tracking + Financial Tracking
Convening around investments in diverse managers
Impact investing practicum @ Haas
Role of student managed funds (SIILK Network)
Mission-first money creating opportunities that "traditional" dollars can then follow/invest in
Metrics of community impact
Storytelling around good investments and founders (esp. diverse-owned)
Changing narrative about tradeoff between impact + returns
Connecting talent to Impact Industry
Look at each institution individually to see what initiatives they have committed to or click the logo of a particular initiative to look at all the institutions in our growing database that participate.
Look through each sustainable investing activity to learn more and see which schools have implemented these changes.
Addressing key material factors that have often not been considered investment decisions can help investors maximize a portfolio’s risk and return profile. In addition to addressing constituent concerns, incorporating material environmental, social, and governance factors into an investment decision value chain can enhance long-term returns, decrease risk by providing downside protection, and deliver portfolio benefits such as diversification and reduced volatility.
David Blood discussing sustainability and stock selection at 2016 IEN Forum
As more and more sophisticated investors find long-term competitive advantages in strategies that incorporate material environmental, social and governance ("ESG") factors into investment analysis, prudent adoption of mission-aligned investment techniques is consistent with fiduciary duties.