SGI 2019 Conference Will Make An Impact!

As fall begins to make an appearance, we start looking to the weeks and months ahead. While not everyone likes to leave the summer behind, fall brings the excitement of cool air, crisp leaves, spices wafting through the air, and the annual SGI conference, this year on Impact Investing: Social Return on Investment on October 7th.  This transition from summer into fall is the perfect time to evaluate the different impacts our institutions and we personally have on relationships, community, and society. How do we nurture what needs caring for? How do we help ourselves and others continue to grow and thrive? And, can our financial investments reap the same benefits while including this sense of intentionality?

We’re excited about the opportunity to listen to our keynote speaker, Seamus Finn, Missionary Oblate’s Director of Justice, Peace & Integrity of Creation and ICCR Board Chair, and our expert panelists, who I’m sure will bring their opinion on the change of seasons, but more importantly will share their unique experiences and stories on impact investing.

The Global Impact Investing Network (GIIN) defines Impact Investing as “investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return.” Imagine a world where our investments have an impact outside of solely generating a profit, creating positive change. Amit Bouri of GIIN, in an article geared toward faith based investors, explains:

Simply put, impact investing is investing to achieve both a financial return and positive, measurable social or environmental impact. It differs both from traditional philanthropy, which aims for impact but is unconcerned with financial returns, and from other forms of values-driven investment which aim at the avoidance of harm, but not necessarily the creation of additional, measurable positive benefits.

GIIN’s 2019 survey found that the impact investing industry is diverse, including many types of institutions investing in all asset classes. It continues to grow and mature with over $500 billion invested assets. Over 90% of impact investors report that returns meet or exceed their expectations. GIIN’s Impact Investing Guide provides an excellent background for our members.

We’re lucky to be welcoming George Hinton, Greg Lane, Salli Martyniak, and Ken Vander Weele to the panel, alongside moderator, Sr. Dorothy Pagosa to help us explore this topic. Our speakers and panelists will walk us through the purpose and focus of impact investing and all that it can hold. We’ll learn about their mission, motivations, takeaways, and advice in the growing market.

Born and raised in Milwaukee, George Hinton, CEO of the Social Development Commission (SDC) coordinates programs for Milwaukee County’s low-income residents. The SDC’s mission is to “empower people with the resources to move beyond poverty,” which they have been doing since 1963. Greg Lane, CFO of the Missionary Sisters of the Sacred Heart, helps the sisters utilize their resources for the benefit of the common good. He has helped developed a mission-aligned impact investment portfolio and repurpose real estate according to need. Salli Martyniak, president of Forward Community Investments support “organizations, initiatives, and coalitions throughout Wisconsin.” They make it a priority to offer their loans and grants at an affordable cost to assist both the small and mid-sized projects and organizations. Co-founder and partner in Creation Investments Capital Management, Ken Vander Weele, will show us the global side of impact investing. Ken has worked in India, South-east Asia, Eastern Europe, and the United States investing in emerging market financial services companies that serve poor clients. His local and global work will show us the social return of impact investing around the planet. Finally, Sr. Dorothy Pagosa, Director for Social Justice for the Sisters of St. Joseph – Third Order of St. Francis and a member of SGI, will moderate the panel. Sr. Dorothy has first hand experience in identifying and managing impact investments in the midwest.

The event will be preceded by a member meeting and followed by a reception. We hope all of our members and friends will attend what is shaping up to be a very exciting conference.

Translating Values into Policy

By Frank Sherman

As members of Seventh Generation Interfaith (SGI), we profess to “view the management of [our] investments as a powerful catalyst for social change,” but how well do we do this? Many SGI members are reviewing their overall approach to faith or mission-based investing, beyond corporate engagements.

Robert Wotypka, OFM-Cap, reported on his efforts to answer this question for his Capuchin Province during our spring member meeting. He has asked his investment committee and their financial consultant on how they are integrating ESG criteria across their entire portfolio.

The Sisters of St. Francis in Dubuque, IA recently had a workshop facilitated by Chris Cox of SGI to reflect on this question. They feel they are doing an adequate job of taking active ownership by voting their proxies, participating in corporate engagements and filing resolutions; however,they want to better incorporate their values into their investment policy and practices. Anita Green, Director, Sustainable Investment Strategies for Wespath Investment Management shared how the United Methodist Church approaches this topic. Anita described Wespath’s three strategies of Avoid (ethical exclusions), Engage(proxy voting, corporate engagements, political advocacy) and Invest (external manager benchmarking, Positive Social Purpose Lending Program, and low-carbon solutions). They take a holistic approach across all asset classes encompassing their entire portfolio.

A growing strategy of socially responsible investing is community or impact investing. Pope Francis has encouraged Catholic institutions to engage in impact investing with the Vatican hosting their third impact investing conference on this topic last summer. Wharton Business School recently interviewed John O’Shaughnessy, CEO and CFO of the Franciscan Sisters of Mercy, a Roman Catholic group based in St. Louis, MO, on this topic.  “We have carved out 15% of our overall portfolio – about $10 million – and directed that towards impact investing,”said O’Shaughnessy. He described 17 impact investments that the Sisters have made from clean energy to low-income populations worldwide including sustainable timber operations, conservation forestry and detoxing of the environment. “This can be systemic change,” he said of the potential of impact investing. “This is capitalism at its best.”

We added a new section on our “Resources” page, entitled “Incorporating ESG/ SRI Strategies” with some tools that you may find helpful. We will host a webinar next spring on SRI strategies and how our members can better manage their financial assets more holistically. I hope you will be able to join us.