This Week in ESG and Impact Investing

As the 2024 election season heats up, economic policy proposals are once again at the forefront of the national debate. Vice President Kamala Harris, widely recognized for her work in the Senate and in the White House, has introduced a comprehensive economic strategy known as " Kamalanomics ," built on principles of inclusive growth, social equity  and targeted investments in underserved communities. The debate on Tuesday between Harris, the Democratic presidential nominee, and former President Donald Trump, the Republican nominee, highlighted the stark contrast between their economic visions. Trump advocated for a return to his administration's focus on deregulation and tax cuts, while Harris championed her plan for inclusive growth and social equity. As the debate unfolded, Harris emphasized the need for targeted investments in underserved communities, framing these efforts as essential for a sustainable and equitable economic future. While this approach aims to reduce ...

Vice President Kamala Harris recently unveiled her economic plan, which builds upon and expands several initiatives from the Biden administration while adding new elements aimed at addressing economic challenges faced by American families. Her plan, dubbed the "Opportunity Economy" agenda, focuses on lowering costs for essential goods and services, particularly targeting housing, healthcare, and groceries. Key Components: 1. Housing: Harris proposes constructing three million new homes to address the housing supply crunch, which is more ambitious than Biden's two-million-home plan. She also advocates for a $40 billion "innovation fund" to encourage local governments to find solutions to housing shortages and make it harder for investment companies to buy up large numbers of rental properties, which has driven up rent prices. (See: Comments to the CalPERS Board of Administration, July 15, 2024 on Housing and Environmental Investing.) 2. Healthcare: Expanding on B...

  On June 15th, several American financial and political leaders convened in distinct discussions concerning the future of Minority Deposit Institutions (MDIs) and Community Development Financial Institutions (CDFIs). At a White House press conference, a Federal Deposit Insurance Corporation (FDIC) Board meeting and MDI policy statement release, in a House Financial Services Committee statement, and a Georgetown University forum with an all-star cast, minority lending was the conversation of the day. Utilizing the Mosaic Theory, Creative Investment Research contends that the convergence of these events may not be a coincidence, and may signal a significant policy change. We note that the MDI events of June 15th were preceded by a June 14th meeting of the California Public Employees’ Retirement System (CalPERS) Investment Committee. Of particular relevance was a progress report on the Fund’s Sustainable Investment 5 Year Strategy Plan. Fund management discussed diversity and inclusi...

This has been a year of biblical proportions, with almost too many historic events to count. Among everyone 2020 has brought our way, one of the most positive has been Kamala Harris, the first female and person of color to become the Vice President of the USA.  Harris epitomizes the best of a new, more diverse country–mixed race, born of immigrants, and a self-made success. From King to Obama to Harris we have come a long way, but as consequential as they are, they represent only a fragment of the black and brown American experience.  Black and brown entrepreneurs have always been an economic force in America, in 2020 creating 4.7 million jobs and $700 billion in revenue. At the same time, they're too often the most impacted by significant events. For example, in 2020, we saw a 41% decline in black businesses, as a direct result of COVID-19 ( Creative Investment Research ). Although corporates pledged over $40 billion to support BLM, the majority of funds will be slowly alloc...