environmental, Social and governance (ESG)
Environmental (E) is well defined with many investable options;
- Carbon footprint
- Green bonds and other low emission fixed income instruments
Governance (G) is generally agreed upon and incorporated in investment policy statements and Proxy Voting policies.
- Diversity in the Board Room
- Reasonableness of Management Pay
Social (S) is called the messy middle. S is not well defined due in part to social priorities being personal and differ from investor to investor. Most current options generalize to reflect a portfolio consisting of "good corporate citizens". However, corporations are often good actors in a certain social context and not as good in another reflecting the organizational priorities.
At Impact Shares we are collaborating with leading non-profits that are experts in specific areas of societal concern. We work with them to develop metrics by which a good corporate citizen is measured relative to their cause. We, along with the help of a major index provider, score major global corporations relative to that cause and design a broad market proxy index that minimizes tracking error while encouraging active participation in that specific issue.
Celtic knot and the Impact Shares logo
Celtic knots appear in the earliest cave art. They have no beginning and no end and are a reflection of the interconnectivity between all things. The Impact Share’s Celtic knot - symbolizes the interconnectivity between capital allocation and societal priorities. The knot’s reflection implies that everything you do is a reflection of who you are and how your actions impact the world around you.