Thinking Critically while Investing Responsibly

Responsible investors combine their financial objectives with environmental, social, and governance-related risks and impacts. This type of investing goes far beyond simple exclusionary screening or even the much-touted “ESG integration” (environmental, social, and governance integration) that considers only risks and opportunities within the investment itself. Responsible investing gets at the heart of how the philanthropic community can use its unique voice to further the systemic changes that are desperately needed in our economy, society, and environment.

Inflation, Powdered Milk & Toothpaste

As an undergraduate student I recall my macroeconomics professor describing inflation as toothpaste, “Once it’s out of the tube, it’s extremely difficult to get back in.” Every time I brush my teeth these days I think of Professor Sims and the point he made; should inflation get out of control it becomes very difficult to rein in. Inflation in raw materials can create more inflation as higher input prices force higher output prices, which in turn leads to wage increases as workers demand higher pay so they can afford higher goods prices. Manufacturers then further increase prices to protect their profits and make up for higher labor costs. And so on.

How Can Investors Help Confront Racial Injustice?

Download a PDF of this Impact Brief

Here is an update of our 2017 paper on racial justice and investing, renewed to reflect more recent events, engagements, and developments that we are trying to press in our field.

Inequality and injustice based on race were founding economic realities of American life. Two centuries later, inequality, abuse, and discrimination are still present in every sector — in education, housing, healthcare, and policing. In spite of halting progress, our economy, and our capital markets specifically, are still systematic in failing BIPOC (Black, Indigenous, and people of color) communities, continuing to extract value from them, and profiting — and thereby contributing to — their further marginalization and carceration. Not surprisingly, those conditions shape businesses’ risks and opportunities. This paper discusses integrating racial justice into investment — both with an analytical lens and an economic reality. Doing so helps us protect the value of our portfolios and channel our clients’ voices to help create positive change.

To read more download a PDF of this Impact Brief.

Amazon Needs Independent Leadership

In early April, the SEC ruled that our shareholder proposal urging Amazon to appoint an independent board chair can appear on the company's annual meeting ballot in late May. Amazon had challenged our proposal on spurious grounds, and our victory at the SEC means that investors will have a chance to confront the company's weak corporate governance and its wide-ranging social and environmental issues.