Vancouver, BC, (May 21 2020) - Today, Genus Capital has announced that it is introducing a new standardized Net Impact Score to its portfolios to increase transparency of the overall impact of investments. Genus is the first investment firm in Canada to integrate this scoring technique into its impact portfolios.
The unified scoring system captures the ‘gray areas’ of impact assessment where individual investments can have both a negative and positive impact towards the world. To measure the Net Impact of an entire portfolio, both the harmful and beneficial nature of investments within the portfolio are calculated to provide a single metric to determine the holistic impact of the portfolio.
Net Impact scores enable investors to better align their investments with their values through increased transparency of the holistic impact of their portfolio. For example, if an investor is striving to make an impact in climate action, they may believe that a few investments in renewable energy will create a net positive impact. However, investors need to measure their entire portfolio to account for investments that detract from this goal.
Mike Thiessen, Partner & Director of Sustainable Investments, Genus Capital, explains:
“It is the net impact of portfolios that really matters. Investors that want a positive impact need to not only increase the ‘good’ investments, but they need to decrease the harmful investments as well, to ensure the overall impact aligns with their values.
“We are proud to be the first investment management firm in Canada to integrate Net Impact Scores across all of our impact funds. This will give investors greater insight into the impact of their portfolios and allow clients to achieve their impact goals.”
Genus rates a company’s impactful product or service using the UN Sustainable Development Goals (SDGs) and determines the weighted average impact (positive and negative) revenue of the holdings to get a net impact score. Using this scoring system, The Genus Fossil Free High Impact Equity Fund has a net impact of 57 per cent, compared to a net impact of -0.5 per cent from it’s benchmark, MSCI World.
To download the Net Impact Report, please visit the following link:
https://genuscap.com/wp-content/uploads/2020/05/GenusFossil_ImpactReport_Print-pdf-UPDATE-E.pdf
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About Genus Capital Management Inc.
Genus Capital Management Inc. is an independent investment management firm based in Vancouver, founded in 1989. Genus is passionate about creating innovative investment solutions that meet our clients' changing needs. With more than $1.6 billion in assets under management, at December 31 2019, Genus' clients include leading environmental organizations, foundations, and individuals across Canada. Today, Genus Capital is at the forefront of Canada's Divest-Invest movement with a complete suite of fossil fuel free funds that are tailored to meet the needs of investors who wish to invest in a sustainable, clean energy future.