Driving positive environmental and social impact through our
clients’ portfolios, in alignment with their mission, has been at
the core of Capricorn’s investment philosophy
since inception.
Impact is embedded in our DNA and we evaluate the potential for environmental and social impact (and negative externalities) at every step of our investment process. We ensure consistency and responsibility of impact evaluation throughout the investment lifecycle.
We are committed to working with our clients to build portfolios that not only generate positive impact, but are well-positioned for the new social, environmental, and economic structures that will define the future.
In our third annual Sustainable Investors Fund Impact Report, we share our progress on impact and highlight the outcomes that our investees are enabling for their end beneficiaries. Capricorn established the Sustainable Investors Fund (SIF) to support early-stage, mission-aligned asset management firms capable of driving change at scale, and our approach is anchored in the belief that impact and competitive financial returns are not mutually exclusive – a large addressable gap exists in allocating capital to pressing global issues. This gap must be filled by asset managers with innovative approaches to investing for both returns and impact, at scale.
In our 2023 impact report, we outlined SIF’s vision across several key issue areas. In this report, we monitor SIF’s progress in executing our core impact goals:
These priorities remain at the heart of our agenda, and we continue to see promising opportunities for specialist investors in these growing sectors. Read the full report to learn more.
read the full report
Impact investments span public and private investments and asset classes. Categorizing impact by four key issue areas allows us to integrate key thematic impact goals into long-term asset allocation frameworks.
Protect natural resources and preserve the capability of the environment to support human life.
Forest conservation
Sustainable food & agriculture
Energy transition Clean energy
Energy efficiency
Sustainable transportation Resource efficiency Low carbon transition Green real estate Sustainable manufacturing
Support healthy living through disease prevention, improved health care delivery, and health care technology innovation.
Healthcare services
Healthcare innovation
Improve the financial well-being and security of economically disadvantaged communities and individuals.
Affordable housing
Inclusive financing
Gender diversity
Racial equity Access to quality education
Purposefully integrate environmental and social priorities into investment approach and business operations.
Aligning capital with ESG leaders
Engaging companies on environmental and social issue areas
Our holistic impact framework enables consistent impact evaluation of our investment managers and portfolio companies. We engage in regular discussion of progress and transparency around challenges.
We recognize the power of diverse backgrounds and experiences not only in our own team, but in the managers we source and partner with. We actively engage with fund managers to understand and improve racial and gender diversity in our client portfolios.
It is our belief that all companies have a responsibility to address climate change, and companies that underperform on climate metrics face an increased level of financial risk. We measure portfolio holdings on their greenhouse gas emissions, alignment with a low carbon future, and potential transition risk or stranded asset risk due to regulatory action.
Through our portfolio building process, we identified gaps in investment offerings to address environmental and social issue areas. In order to mobilize capital to such issue areas, Capricorn created or co-created over 20 new funds and asset management firms with sustainability at the core of their investment philosophy.
We have committed to offsetting all carbon emissions from our portfolio of investments through the acquisition of high-quality nature-based removal and avoidance carbon credits. This focus on carbon neutrality comes in addition to our ongoing focus on achieving real-world impact by investing in climate solutions.
Portfolio approach to climate change mitigation
Read the above study conducted by Bridgespan Social Impact and Capricorn Investment Group to learn more about the research and practical solutions for foundations to consider as they look to ramp up their allocations to impact investments.
Read More
Mission-aligned clients often have a specific north star or set of values they would like to pursue through their investments. OCIOs must work closely with clients to understand these values and prudently align them with their financial goals. Read the Confluence Philanthropy blog by Capricorn’s Kunle Apampa, William Orum, and Mandira Reddy on how to construct an impact portfolio that best suits mission-aligned client needs.
Read More
For over 20 years, Capricorn has partnered with mission-driven clients who have chosen to harness their investment capital for two purposes: to generate returns over the long term, and to create meaningful social and environmental impact. In our whitepaper “Creating Mission-Aligned Portfolios,” we share our approach to activating the entirety of our client portfolios to meet their unique needs and address critical global issues.
Read More
We believe in the power of collaboration to advance our collective missions. We have developed strategic partnerships with a range of non-profit networks and targeted initiatives, including:
Certified B Corporations are leaders in the global movement for an inclusive, equitable, and regenerative economy.
B Corp member since 2014
BankFWD aims to accelerate the decarbonization of the financial sector by mobilizing stakeholders and sectors to engage their banks on Paris-aligned climate action.
The Carbon Call helps accelerate ongoing work to improve measurement, reporting, and verification of GHG emissions and removal, primarily for the corporate sector.
CDP is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. Capricorn has worked with CDP to lead and participate in carbon disclosure campaigns.
Ceres is a nonprofit organization working to solve the world’s greatest sustainability challenges and inspire equitable market-based policy solutions throughout the economy.
Investor Network Member
Confluence Philanthropy supports and catalyzes its membership to transform the practice of investing by aligning capital with our community’s values of sustainability, equity, and justice.
Practitioner Member since 2023
CREO is a public charity working to invest and catalyze $1 trillion of capital into climate and sustainability solutions towards the decarbonization transition by 2025.
Member
The Environmental Defense Fund is a nonprofit organization guided by science and economics to find practical and lasting solutions for critical environmental problems.
The Global Impact Investing Network is the global champion of impact investing, dedicated to increasing its scale and effectiveness around the world.
Member
IEN focuses on addressing inequality and the climate crisis by connecting over 200 active members to stay up to date on the latest best practices, develop partnerships, and advance the field.
Member
The Investor Network on Climate Risk works with members to advance sustainable investment practices, engage with corporate leaders, and advocate for key policy solutions toward a net zero emissions economy.
MIE provides resources, inspiration, and connections to help members increase the scale and impact of their impact investing practice.
Affiliate Member since 2021
The Net Zero Asset Managers initiative is an international group of asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner.
Became a signatory in 2021
The PRI works to support its international network of investor signatories in understanding and incorporating ESG factors into their investment and ownership decisions.
Became a signatory in 2008
The World Economic Forum engages the foremost political, business, cultural and other leaders of society to shape global, regional and industry agendas.
CIG Climate Change Article: Click Here