3 P's - People, Planet, Profit
Corporate Social Responsibility (CSR) is critical for healthy environmental, investor, and client relations in the new global, knowledge-based economy. We provide our corporate and philanthropic clients with innovative consulting strategies that maximize sustainable social, environmental, and fiscal impact within targeted demographics, communities, and organizations.
A key part of our CSR Strategy goes beyond the 3P's of People, Planet, and Profit, to the core of an organizations ability to achieve adaptability, productivity, and resiliency in the digital economy, which is essential to remain legitimate in the marketplace of tomorrow. CSR serves as a catalyst for human development, creativity, and high performance. It is our desire to help organizations achieve mastery in each of these strategic areas.
In order to maximize CSR within any organization, there must be a high level of transparency. Clients, partnering organizations, and investors deserve to be well-informed regarding a companies efforts at CSR. We work with clients to identify common metrics recommended by social impact organizations and investors alike, such as Impact Reporting & Investment Standards (IRIS), as well as the Global Impact Investment Reporting System (GIIRS), to help our clients identify both strengths as well as areas where growth can be achieved to attain high levels of social and environmental impact. Our methods proactively give companies the tools they need to hold themselves accountable by making reasonable efforts to improve society and the Earth, as well making a profit. Let us help you realize higher standards for CSR today.
Social Impact Financing
“I am convinced that helping address societal problems is a responsibility of every business, big and small…Financial achievement can and must go hand-in-hand with social and environmental performance.’ – Indra K. Nooyi, President and CEO of PepsiCo.
As governments the world over become more fiscally restrained, the need to address societal issues still remains a priority for continued global growth and viability. Social Impact Financing is a new and innovative way to conservatively address intricate socio-economic problems, backed by private financing. The model becomes sustainable as a result of the possibility of returns for investors. Additionally, the possibility of tax-payor cost-savings brings benefits to the average American.
The world is on the brink of a revolution in how we solve society’s toughest problems.
The force capable of driving this revolution is ‘social impact investing’, which harnesses
entrepreneurship, innovation and capital to power social improvement. - Impact Investment: The Invisible Heart of Markets (G8 Social Investment Taskforce)
Impact investing is not a utility to replace government, but rather a tool to help government address major societal issues in a way that is innovative, sustainable, proactive, and fiscally conservative. There is also the potential for investors to tap into new markets, combing social impact with emerging technologies, such as digital currency, drones, and 3-D printing to create social good, while leveraging the profitability of an initiative. Impact investing is a way for Social Organizations to scale-up their impact, while creating alternate streams of income and ultimately providing a more sustainable existence for any benefit organization, as well as providing increased services and service quality to the clients of service-based organizations.
- One out of every nine dollars under professional management in the U.S. is invested according to strategies of sustainable and responsible investing (SRI)(Social Impact) – US Forum for Sustainable and Responsible Investment.
- $3.31 trillion in US-domiciled assets at year end 2011 held by 443 institutional investors, 272 money managers and 1,043 community investment institutions that apply various environmental, social and governance (ESG) criteria in their investment analysis and portfolio selection - US Forum for Sustainable and Responsible Investment
- $1.54 trillion in US-domiciled assets at year-end 2011, held by more than 200 institutional investors or many managers that filed or co-filed shareholder resolutions on ESG issues at publicly trades companies from 2010-2012 (Thompson Reuters).
- From 2010 to 2012, there has been a pronounced upward trend in vote support on environmental and social issues, with 24 percent or more of such resolutions each year receiving the support of more than 30 percent of the shares voted, up significantly from the levels of 2007 to 2009, when only 15 to 18 percent of environmental and social issues resolutions won such support levels (Thompson Reuters).
- 74% of investors surveyed believed that impact on other social issues such as income inequality and human rights inequality should be assessed (PriceWaterHouseCooper).
- Banks and capital markets have also seized on new products linked to sustainability. These products respond to the new priorities of many investors, including a second generation of wealthy families who are intent on deploying their inheritance in socially responsible ways, institutional investors (pension funds) looking for long-term above-average returns, and sustainable companies looking to deliver on those priorities. Products already with track-records including sustainability indices such as the Dow Jones Sustainability World Index, renewable energy funds, water business funds and socially responsible investing (SRI) funds (PriceWaterHouseCooper).
I. Social Impact Bonds
Traditional Investments vs. Social Impact Bonds
Social Impact Bonds (SIB's) are a fiscally conservative financial instrument, which is designed to save the local and state government cost-savings to tax-payers, while maximizing social impact. The first SIB in the world was created in the UK to address recidivism. Results have already begun to pour in regarding the first SIB in the UK, and the data thus far has been promising regarding its results. The first SIB in the United States was created to address Recidivism in New York. Since then, numerous SIB's have been funded to address areas such as early childhood, homelessness, and foster children. The overall investment in social impact is expected to grow exponentially. From 1995, when US SIF Foundation first measured the size of the US sustainable and responsible investing market, to 2012, the SRI universe has increased 486 percent, while the broader universe of assets under professional management in the United States, according to estimates from Thomson Reuters Nelson, has grown 376 percent. Unlimited potential lies in store for creating social and environmental impact as well as profit as the market has just barely begun to be tapped for opportunities.
For more information on social impact investing, register for a FREE 30-minute consultation by clicking here!