Racial Equity: The Economic and Business Case for Change
This page from Mission Investors Exchange compiles evidence, in reports going back to 2013, illuminating how and why racial equity is good for business — and how inequity causes economic harm — with increasing implications as America's heads towards a population in which more than half of U.S. workers and consumers will be people of color by 2050. Impact investors can use these data to make the case for why pursuing racial equity in impact investing may indeed be a fiduciary responsibility and lead to long-term gains.
Diverse Asset Managers: Opportunities for inclusion
The Knight Foundation reviews the data on firms owned by women and minorities in the asset management industry.
Inclusive Impact: A Comprehensive Review of Diversity in the Social Investment Sector
From The Diversity Forum: In 2018 Inclusive Boards was commissioned by the Diversity Forum, funded by the Connect Fund to extend and contribute to existing research on diversity in the social investment sector. The primary aim of this research was to use different data collection methods to better understand why there are ceilings for women in management positions and ethnic minorities in back office functions. They also examined other diversity strands whilst taking into account intersectionality factors.
Diversity Beyond Gender: The State of the Nation for Diverse Entrepreneurs
By Erika Brodnock from Extended Ventures: This vital piece of research, which was carried out by Extend Ventures with the support of Impact X Capital Partners and Tech Nation, looks at how the colour of a founder’s skin can adversely affect their access to capital in Britain.
The Investment Case for Board Diversity: A Review of the Academic and Practitioner Research on the Value of Gender and Racial/Ethnic Board Diversity for Investors
This paper from the Office of the Illinios State Treasurer seeks to examine the wealth of literature on the subject of whether and to what extent gender and racial/ethnic diversity affect the functioning of corporate boards and the performance of the companies they oversee, to provide further insight and render a judgment on the investment case for gender and racial/ethnic diversity on corporate boards. In summary, this paper concludes that the gender and racial/ethnic composition of corporate boards does indeed have a material and relevant impact on company performance and investors.
Social Equity Investing: Righting Institutional Wrongs
From Cambridge Associates: This paper reviews the current state of social equity in the United States, highlight eight core social equity issue areas, and discuss the lessons they've learned in constructing portfolios with these investments. They define social equity investing as investments to promote equal opportunity and access for all, regardless of background, but understand that many investors have different definitions. While investors need to be mindful of risks, the authors believe that investments can be made to promote a social equity impact agenda across the portfolio.
Harvard Law School Forum on Corporate Governance: Racial Diversity and Investment
Whilst gender diversity has been a growing priority for several years, investors have not approached racial diversity with similar enthusiasm and urgency. The topic of racial diversity in the investment industry was recently raised in an open letter in the UK from a group called Black Women in Asset Management, challenging the industry to move beyond statements on solidarity and anti-racism. The extensive Black Lives Matter protests, catalysed by the killing of George Floyd, have highlighted our interdependence in the midst of a global health crisis and the urgent need for action. It is time to ask what institutional investors can do to address the increasingly evident racial iniquities and their inconsistency with commitments to responsibility in business and investment.
Racial Equity Action Plans: A How-to Manual
Racial Equity Plans are both a process and a product. A successful process will build staff capacity which can be valuable during implementation. A process can also serve to familiarize more staff with the jurisdiction’s racial equity vision and its theory of change. This manual from GARE provides guidance for local governments to develop their own Racial Equity Action Plans after a period of research and information gathering. This manual also provides guidance and tools to conduct this research.
Racial Equity: Foundational Concepts
If you're early in your journey of exploring the links between racial equity and impact investing, a useful place to start is by understanding core concepts behind racial equity and how it differs from concepts such as diversity and inclusion. To help you get started, Mission Investors Exchange has compiled a brief list of frequently used terms, synthesized from the resources of leading educators.
Racial Equity Tools Glossary
Words and their multiple uses reflect the tremendous diversity that characterizes our society. Indeed, universally agreed upon language on issues relating to racism is nonexistent. Even the most frequently used words in any discussion on race can easily cause confusion, which leads to controversy and hostility. It is essential to achieve some degree of shared understanding, particularly when using the most common terms. In this way, the quality of dialogue and discourse on race can be enhanced.
A Blueprint for Revamping the Minority Business Development Agency
Across the United States, small businesses are a significant source of employment and provide a variety of goods and services. For those who are fortunate enough to own a small business, they can also offer a pathway to wealth building and prosperity. Unfortunately, the ownership, profitability, and even presence of small businesses are grounded in differences in capital finance and unevenly distributed by race—especially when comparing Black and white communities. This issue brief examines the disparity.
Investing for Justice Part 2: How
Social and racial justice is a complex and sensitive systemic issue that can make people feel uncomfortable. Systemic inequalities in the financial sector reinforce systemic inequalities in society. However, if we are going to commit to learning and striving for change, then the issues need to be faced in order to overcome them. This report from Rally Assets demonstrates how we can work to reduce those inequalities by how and where we invest our capital.
Diversity & Inclusion in the VC Industry
NVCA and Deloitte dashboard to explore who works in the VC industry (US); whether gender, racial/ethnic, or age groups have differing experiences; what firms are doing to enhance diversity and inclusion; and how these findings compare to the benchmark from the inaugural study.
The Equity Equation: A Roadmap to Equity, Diversity and Inclusion in Canadian Finance
The Equity Equation aims to inform the finance industry’s diversity strategies and best practices, and to equip WCM’s partner firms, their leaders, managers and employees with tangible recommendations to advance equity. These recommendations offer a roadmap for their partners who wish to advance equity, diversity and inclusion.
The Fight for Racial Equity
Trillium's white paper explores what Trillium can do and has done as an investment firm, an employer, and an advocate for change in the fight for racial equity.
Racial Equity Investing
Morgan Stanley's report offers a framework for investors to understand the risks and financial impact associated with perpetuating racial inequality, and to identify ways to allocate capital toward opportunities to promote racial justice.
Sustainable & Impact Investing: Racial Equity Investing
Glenmede's primer on racial equity investing demonstrates that racial equity investing can help investors identify unique sources of alpha in three ways: enhanced financial performance, new investment opportunities, and risk mitigation.