Using Capital as a
Force
for Good
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.
An Integrated
Approach to Impact
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.
Our Approach to Impact
Investing Across Key Environmental
and Social Impact Areas
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.
Climate
Solutions
Protect natural resources and preserve the capability of the environment to support human life.
Forest conservation
- Sustainable food & agriculture
- Energy transition
& resource efficiency - Clean energy
- Energy efficiency
- Sustainable transportation
- Resource efficiency
- Low carbon transition
- Green real estate
- Sustainable manufacturing
Health &
Wellness
Support healthy living through disease prevention, improved health care delivery, and health care technology innovation.
- Healthcare services
- Healthcare innovation
Inclusive
Capitalism
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
Sustainable
Markets
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 Impact Principles
Impact Evaluation & Management
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.
Diversity, Equity, & Inclusion
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.
Climate Risk Evaluation
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.
Capricorn’s Impact Innovation
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.
Our Commitment
to Net Zero
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
Industry Partnerships
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