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 firm’s DNA. We evaluate the potential for environmental and social impact – as well as negative externalities – at every step of our investment process.
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
We seek to generate impact for our clients in every asset class. Whether the investment is public or private, we categorize impact into four distinct issue areas. This framework facilitates integration of each client’s thematic goals into their long-term asset allocation.
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.
Healthcare services
Healthcare innovation
Improve the financial well-being and security of economically disadvantaged communities.
Affordable housing
Inclusive financing
Gender diversity
Racial equity Access to quality education
Strategically integrate impact priorities into investment diligence and business operations.
Aligning capital with ESG leaders
Engaging companies on environmental and social issue areas
Our holistic impact framework enables consistent evaluation of our asset managers and portfolio companies. We regularly engage in dialogue about their progress and challenges.
We recognize the importance of diverse backgrounds, not only within our team, but also for the managers with whom we partner. We actively engage with fund managers to understand and improve diversity in our client portfolios.
We believe that every company has a responsibility to consider climate change – and that those who fail to do so face higher financial risks. Within our clients’ portfolio holdings, we measure greenhouse gas emissions, alignment with a low carbon future, and stranded asset risk.
Over the past 25 years, we have identified numerous gaps in the impact investment ecosystem. To mobilize more capital to a broader array of issue areas, Capricorn has facilitated the creation of over 20 new strategies and asst management firms – all of which hold sustainability at the core of their respective investment philosophies.
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
Human rights investments offer a spectrum of opportunities across different risk profiles, time horizons, and return expectations. Read our recent whitepaper to explore how institutional investors can strategically align capital with human rights priorities – while considering overall portfolio objectives.
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Capricorn Investment Group has been investing in GP stakes since 2006, committing over $1B to private GP strategic solutions for impact-native investment management firms. Read our recent whitepaper exploring the role and importance of GP Stakes in the impact investment space.
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For over 25 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.
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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.
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We believe in the power of collaboration to advance our collective missions. To support our clients’ interests, 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
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
Impact Capital Managers is a membership program for funds managing impact-focused capital. Their mission is to accelerate the performance of their members and scale the private capital impact investing marketplace with integrity and authenticity.
ImpactAssets offers innovative philanthropic and impact investing products and services. They are dedicated to changing the trajectory of our planet’s future and improving the lives of all people.
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 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