Three ways climate-committed shareholders can flex their power in 2022. While too many global investment firms filled the halls of COP26 in Glasgow with hot air, early-movers in shareholder action were finding new ways to confront the roots of the climate crisis: corporate strategies that sacrifice long-term sustainability for short-term gain. These leading investors know that more dialogue and disclosures will not be enough to mitigate the escalating risks that climate change poses to long-term portfolios and to the global financial system itself, Majority Action’s Eli Kasargod-Staub writes in a guest post. “Shareholders collectively have the power to demand that corporate directors take immediate and comprehensive action to lead their companies toward true net-zero pathways – or vote them out and replace them with leaders who will,” he says. A growing cadre of investors are stepping up to do exactly that in next year’s proxy season.
Dealflow: Returns on Inclusion
Secondaries fund secures $11.5 million to create a market for CDFI loans. Community lenders can expand their “microlending” capacity by selling some of the small loans on their books (for background, see “Entrepreneur Backed Assets Fund aims to provide liquidity for community lenders”). “Microloans are indispensable in meeting the credit needs of entrepreneurs of color and women entrepreneurs,” said Joyce Klein of Aspen Institute, which launched the Entrepreneur Backed Assets Fund with the Microfinance Impact Collaborative. Among the fund's backers: Wells Fargo, Colorado Health Foundation, Annie E. Casey Foundation and Truist Bank.
Podcast: Gender Smart
A global bio fund is centering women to drive equity and returns (podcast). Growing up in an unequal society in India prepared Ipshita Mandal-Johnson to overcome limitations. With a new life sciences fund, Mandal-Johnson is again going beyond what has historically been possible. She and co-founder Giorgio Reggiani are investing their Global Bio Fund exclusively in women-led bio startups with solutions in health and wellbeing, food and agriculture, and energy and environment. Women-led companies generate more revenue with less capital and higher investment rates of return than male-founded firms. “Women also tend to be more involved in making sure that they have good impact,” says Reggiani. The real question: “Why are you not investing in women entrepreneurs?”
Agents of Impact: Follow the Talent
Kimberly Osagie, ex- of Promise54, joins Echoing Green as vice president of programs… Rob Tashima steps down as chief growth officer at Village Capital to join Draper Richards Kaplan Foundation as a senior director of pipeline and partnerships. Village Capital is recruiting for Tashima’s replacement… Blue Forest is hiring an investment associate… Serena Ventures is looking for an associate in San Francisco.
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