Trailblazing Women in Impact Investing

Posted on August 11, 2016October 25, 2018 by Case Foundation

Special thanks to Ramya Tallapragada, intern with the Case Foundation, for her contributions to this blog.

In the years since the Case Foundation became a champion for Impact Investing, the movement has really taken off. In the U.S. and around the world, there has been a flurry of activity among traditional investors, policymakers, philanthropists and researchers. We’ve seen traditional investors begin to realize the value of private capital deployed for good, without the need to sacrifice profit. We’ve seen concerted efforts from the social sector to build necessary infrastructure for the Impact Investing and social enterprise community. We’ve seen government catalyze progress by enacting policy changes to increase the amount of capital available for good. We’ve seen impact investments empower entrepreneurs with transformative ideas to solve real world problems.

The Impact Investing movement also stands out in another important way: women are emerging as a driving force behind its growth—as investors, as entrepreneurs and as leaders of the movement. A recent NASDAQ piece notes that women are spearheading and populating this sector more so than any other financial services sector. I suppose there are a host of reasons why this is, but I particularly like a quote by Jackie VanderBrug of U.S. Trust in this article:

“I wouldn’t want to say it’s pink, but it has been a field where, philosophically, women have led. Part of that is because women have a more holistic view of investment. Yes, they do care about returns, but they also care about the role of their investments in society. It’s partly because they are looking for more opportunities to differentiate themselves. And it’s partly because they are looking to meet objectives beyond the benchmarks.”

A recent Calvert Investments report asserts that women, along with younger investors, will drive the growth of Impact Investing. In a study of affluent women, Calvert found that 95 percent ranked “helping others” and 90 percent ranked “environmental responsibility” as important. Women have also demonstrated that they often make purchasing decisions based on their personal values. Still, only 4 percent said that they understood how to make investments that align with their values. 70 percent did not know about sustainable or responsible investing.

While business and investing continues to focus on boomers, this data shows the importance of ensuring that women are aware of Impact Investing strategies. Remember, their purchasing power and, therefore, their potential social impact power is enormous—women control 39 percent of investible assets in the U.S. That number will continue to rise, as 50 percent of private wealth in the U.S. will be in the hands of women by 2020. And, amongst that group, it’s worth keeping an eye on Generation X and Millennials set to inherit $41 trillion of wealth over the next 40 years, with a higher degree of millennial women who are educated and look to have decision making power (vs. their male counterparts).

Education about opportunities and the how-to’s of Impact Investing remain an essential component of leveraging the impact of women in Impact Investing. Activating more investment dollars into the space is what’s required to tip the movement from niche concept to mainstream investment strategy. And typically in the early stages of movement catalyzing, we require some “Be Fearless” actors just “doing it” as we say in our Short Guide to Impact Investing.

Here are some of the fearless women leading the charge. It’s by no means comprehensive, but rather a spotlight on the mix of players from philanthropy, the investment community, the financial services industry and government:

In Philanthropy:

I would be remiss not to start with our own Jean Case*. She is an avid champion of the concept of putting private capital to public good. Her work on the U.S. National Advisory Board for Impact Investing helped craft a hugely successful coalition of change agents around a collective policy agenda. And she remains one of the most powerful influencers in the field, as an advocate, an ecosystem builder and an investor.
Clara Miller*, after assuming leadership of the Heron Foundation in 2010, has led the foundation’s effort to deploy all of its assets towards its mission, breaking down the traditional method of giving within the organization and ensuring that Impact Investing was totally integrated into the foundation’s operations and mission.
Debra Schwartz* has led the MacArthur Foundation’s Impact Investing arm for 15 years, directing capital to improving affordable rental housing across the U.S.
Laura Arnold, co-Chair of the Laura and John Arnold Foundation, is a leading advocate and supporter of Pay for Success, a potential break-through financing scheme for social ventures.
Kimberlee Cornett*, Managing Director of The Kresge Foundation’s Social Investment Practice, spearheads the foundation’s effort to identify and fill gaps in funding for enterprises in economically stressed communities using a strategic combination of grant making and investing.
Paula Goldman, Vice President and Global Lead for Impact Investing at Omidyar Network, is a critical thought-leader and movement builder in the space. And Omidyar Network’s early movement in the Impact Investing arena and continued big bets in the space continue to pave the way for future followers.

In the Investment Community:

Nancy Pfund, Managing Partner of DBL Partners, is a venture capitalist that has proven that striving for a double bottom line can be profitable for investors and companies. Her current fund has committed to making early investments in companies to not only facilitate impact, but also encourage the integration of impact into corporate culture and operations.
Deborah Winshel of BlackRock Impact is transforming the way the traditional investing community views impact. BlackRock Impact oversees $200 billion in assets, offering clients values-based, ESG-based and Impact Investing strategies. A passionate advocate for metrics, Winshel is also leveraging BlackRock’s quantitative capabilities to measure investees’ social impact.
Dina Habib Powell, head of Goldman Sachs’ Urban Investment Group and President of Goldman Sachs Foundation, is another example of a leader moving Impact Investing to the mainstream. Managing the firm’s housing and community-development investments, Powell is directing billions of dollars to neighborhoods and underserved communities in need across the U.S.
Lisa Hall is Managing Director of Anthos Asset Management, a privately owned investment manager based in Amsterdam. Former President and CEO of Calvert Foundation, Hall is a champion for investing in enterprises that aim to solve critical social issues.
Maya Chorengel* is the founder of Elevar Equity, a fund manager committed to using impact investments to empower entrepreneurs around the world. Elevar Equity’s early-stage investments have enabled enterprises to develop innovative business models to solve critical development problems around the world.
Jenny Abramson, founder of Rethink Impact, brings her diverse background in consulting, education, technology and media to Impact Investing. Rethink Impact is focused on investing in companies managed by women and leveraging technology to create impact. Listen to this podcast and her focus on enhancing returns through gender lens investing.
Jennifer Pryce, President and CEO of the Calvert Foundation, is at the forefront of the effort to democratize Impact Investing. Through Vested.org, the Calvert Foundation offers an inexpensive way to become an impact investor by using the foundation’s Community Investment Notes.
Erika Karp, Founder and CEO of Cornerstone Capital Group, leverages her expertise working at UBS and as a founding board member of SASB to advance sustainable investments.
Tracy Palandjian*, Co-Founder and CEO of Social Finance, is leading the charge to promote public-private partnerships through Pay for Success and Social Impact Bond models.
Audrey Choi*, CEO of Morgan Stanley’s Institute of Sustainable Investing, brings her experience working in journalism, the social sector and government to build cross-sector partnerships that promote sustainable investing in building resilient communities across the globe.
Durreen Shahnaz, Founder of Asia IIX and Shujog, is building a robust Impact Investing ecosystem in Asia. After establishing Asia IIX, the world’s first social stock exchange, Shahnaz founded Shujog, which strives to amplify the impact of social enterprises. Keep an eye on her latest idea—the Women’s Livelihood Bond.

In Research and Metrics:

Jean Rogers, Founder and CEO of the Sustainability Accounting Standards Board (SASB) is filling a critical gap in the current Impact Investing industry: measurement standards. SASB is the social side of FASB, and will enable investors to evaluate corporations on their environmental, social and governing performance.
Cathy Clark*, at the Center for the Advancement of Social Entrepreneurship (CASE) at Duke University, is using her 25 years of experience as an impact investor and private foundation executive to conduct rigorous research and data collection to build out the case for Impact Investing. Her most recent report examines the challenges and barriers to Impact Investing.
Michelle Greene*, former head of Corporate Responsibility at NYSE Euronext is bringing her extensive experience to academia as Adjunct Professor at Columbia University. She also recently joined the Long-Term Stock Exchange, a new securities exchange focused on long-term value creation, as Chief Policy Officer.
Sonal Shah, Executive Director of the Beeck Center for Social Innovation at Georgetown University, has taken on a leading role in promoting innovative finance and social innovation policy in the public and private sectors.
Lisa Woll, CEO of the US SIF, leads a vibrant network and hub for sustainable, responsible and impact investment, with a host of essential programs and resources. See the 2014 US SIF report here.

In Government:

Maria Contreras-Sweet, Administrator of the U.S. Small Business Administration, has increased awareness around and the amount of funding to its Impact Fund, part of a $21 billion (yes, billion!) Small Business Investment Company that is focused on increasing investment flows to sectors and regions where capital formation gaps are widest.
Cecilia Munoz, Assistant to the President and Director of the Domestic Policy Council, has been a champion of social innovation, Impact Investing and pay-for-success financing model. The Office of Social Innovation and Civic Participation, under her leadership, continues to push for creative solution to accelerate social and economic progress and stronger communities.
Ruth Madrigal, Attorney-Advisor in Treasury Department’s Office of Tax Policy, is a real unsung hero of the Impact Investing movement. Her diligent, patient, consensus-building approach to what resulted in new Program-related Investment (PRI) guidance has the potential to unlock billions in foundation funding.
Elizabeth Littlefield*, President and CEO of the Overseas Private Investment Corporation (OPIC), is changing the way the U.S. thinks about the private sector’s role in development. She leads the U.S. government’s effort to direct private capital to solving development challenges across the globe, using a wide range of innovative financing methods.

It is becoming increasingly clear that women—at every intersection of the Impact Investing movement—are serving as trailblazers and practitioners for its advancement. We just wanted to take a quick moment to say thanks and keep up the hard work.

*Member of the U.S. National Advisory Board on Impact Investing (NAB)

One Fearless Question That Paved the Way for Women in Government

Posted on March 8, 2016October 30, 2018 by Case Foundation

Today is International Women’s Day, and as part of the celebration of Women’s History Month, I know today will be filled with blogs, tweets and stories here in the U.S. and around the world, recounting great moments in women’s history and great leaders who helped advance the rights and opportunities for women. I will have the honor of leading a discussion later today with a remarkable woman, Barbara Hackman Franklin, who was in the Class of 1964 at Harvard Business School—the first graduating class that included women. In researching Barbara’s own history of contributions to our nation, I came across a story I had never heard, despite my lifelong passion for history, and I thought it was one that needed to be shared, especially in midst of this election year. In many ways this story reminds us not just of the important role our nation’s leaders play, but also the role and the power of a single, unexpected voice.

When we think of great champions for women throughout history, chances are most people would not even think to include Richard Nixon in the list. And so it may be surprising to some to learn that in August of 1972, Newsweek heralded that “the person in Washington who has done the most for the women’s movement may be Richard Nixon.” I was quite surprised to come across this statement, and my guess is, you may be, too. Unfortunately, the Watergate scandal and resulting resignation means that President Nixon is rarely given credit for the important role he played in advancing the role of women in government. Nor is appropriate credit given to two women who had a crucial part in his efforts—Vera Glaser and Barbara Hackman Franklin.

But before I get to their stories, it is important to note the rich history of efforts in the 20th Century to empower women in America—particularly within and through government—that helped pave the path for Nixon’s actions.

It was thirteen years after the passage of the 19^th Amendment when President Franklin Roosevelt named the first female cabinet member, Frances Perkins, as Secretary of Labor. In 1961, President Kennedy established the President’s Commission on the Status of Women, chaired by Eleanor Roosevelt. Incremental and steady progress for women’s rights continued, with the Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964 further advancing women’s rights in the workforce.

But when President Richard Nixon was sworn into office in January 1969, an important step forward for women was set into motion. He had only been in office for a month when, at a press conference, a hand shot up from the third row by a female reporter, Vera Glaser. Her question would reverberate far beyond the room: “Mr. President, you have so far made about 200 high-level Cabinet and other policy position appointments, and of these, only three have gone to women. Can you tell us, sir, whether we can expect a more equitable recognition of women’s ability or are we going to remain a lost sex?” At first there was some laughter but the President, composing himself, grew serious and stated, “I had not known that only three had gone to women, and I shall see that we correct that imbalance very promptly.”

Thus began an effort by President Nixon that changed women’s access to high-level appointments in the federal government in a significant way. A White House Task Force on Women’s Rights and Responsibilities was formed the following year and Vera Glaser was among its members. In June 1970, the task force released their report appropriately titled “A Matter of Simple Justice,” which advocated for an Equal Rights Amendment (ERA) to the Constitution, the promotion of civil rights and equal opportunity for women, and as an example for society, the advancement of more women to executive positions in the federal government.

A key player in this effort? Barbara Hackman Franklin, who at the time was on the corporate planning staff of the First National City Bank (later Citibank) when she was tapped to come to the White House to lead the ambitious, behind-the-scenes task of implementing Nixon’s directive to the heads of all executive departments and agencies: to develop and implement plans to attract more qualified women to top and mid-level appointments.

Thanks in no small part to Franklin’s tireless efforts, representation of women in federal government was quickly transformed—the number of women in top-level positions tripled after just one year of the White House Women Recruiting Program, which she oversaw. In all, more than 1,000 women were hired or promoted at a time when budget and personnel cuts shrank the federal government by five percent. Many of these women went on to hold additional significant positions in public service—women like Elizabeth Hanford Dole, who served a seven year term to the Federal Trade Commission and was later elected U.S. Senator from North Carolina in 2003, or Carla Hills, Assistant Attorney General, who later became Secretary of Housing and Urban Development to President Ford and U.S. Trade Representative to President George H.W. Bush.

As we look at the world in 2016, we can acknowledge that while there has been much progress related to women and access to high level jobs in the government, we still have a lot of work to do to achieve the aspirations that President Nixon pushed for nearly 50 years ago, when he recognized that “The Nation’s many highly qualified women represent an important reservoir of ability and talent that we must draw on to a greater degree.”

Of course, there have been many significant efforts by our nation’s leaders that followed President Nixon—both Democrats and Republicans. While these combined efforts have brought more opportunity for women across sectors, in the public sector—at all levels of government—we continue to strive for more representation.

There are only six current U.S. Governors that are women, and while the number of women serving in state legislatures has more than quintupled since 1975, the total number is still less than 25 percent of all of those holding office. For every five members of the House of Representatives, there is one woman. Similar stats hold in the Senate. And while only 48 women have ever held Cabinet-level positions, there is a silver lining: seven women currently serve in President Obama’s Cabinet. If Hillary Clinton becomes the Democratic nominee, we will have the first female nominee for President by a major political party—that’s progress!

The story of Vera Glaser’s honest question before a sitting President, combined with the tireless work that Barbara Franklin led in the Nixon Administration, reminds us that progress often comes when diverse voices are heard. In this case, it was one fearless question and a President’s willingness to entertain it that led to dramatic changes. Imagine if the press conference itself hadn’t allowed women, or if the President had simply chosen to overlook them when he called for questions from the journalists who were assembled. How might history have been rewritten?

On this International Women’s Day, in a Presidential election year, we celebrate the often unsung role of President Nixon, Vera Glaser, Barbara Franklin and so many others in advancing the significant role of women in government, and as a result, advancing the representation of women’s voices everywhere.

Photo courtesy of https://bhfranklin.com/.

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Women in Leadership