The Impact Investing Podcast – Détails, épisodes et analyse

Modern media is both wonderful and scary. It represents both the best of what people have to offer and the worst. It can include beautiful works of art by independent artists that tell stories to lift the human spirit and pass along cultural lessons and values or, as is so often the case today, is a mindless clickbait article or listicle about “10 celebrities who don’t wash their hair every day.“ That’s because modern media content is increasingly being determined by finely-tuned algorithms optimizing for clicks, engagement, and ultimately profitability, rather than any higher purpose.

Meanwhile, an increasing number of studies are demonstrating strong links between our consumption of digital and social media with an increased risk for depression, anxiety, loneliness, self-harm, and even suicidal thoughts. Continuing to allow companies to A/B test on us at scale for the sole purpose of optimizing their profitability, without regard for the toll it takes on our physical and emotional well-being, is a recipe for disaster.

Enter today’s guest Charlene SanJenko, founder of reGEN Media. This 100% Indigenous-owned and female-led media partnerships organization matches progressive impact investors with purpose-driven brand advertising dollars to fund transformative media projects that deliver both social and financial returns. Charlene is a national marketing manager, competitive athlete, digital media arts professional, and Indigenous storyteller.

In this episode, we discuss Charlene’s journey to launching reGEN Media, the problems she sees with modern media, her vision for the field of impact media and reGEN in particular, and examples of indigenous-led media projects she has begun supporting, including her own documentary about her journey to reconnect with her Indigenous roots as an adult adoptee. And be sure to stay tuned to the very end when Charlene shares more about the opportunities for how Brands and impact investors can support these amazing media projects.

Resources from this episode:

• reGEN Media’s website and LinkedIn page.
• Charlene’s LinkedIn Profile and Twitter page.

Real estate as an asset class has had an absolutely remarkably run since the 1980’s when we entered a several-decade period of economic prosperity, stable inflation, and declining interest rates. Add to that, more than a decade of quantitative easing that continued to ensure cheap financing was available for consumers and homebuyers alike.

But as with every good story, it eventually must come to an end, as it has for real estate and the economy more generally in 2022. As inflation has reared its head, we’ve been left rising interest rates on top of high prices for goods and real estate, thereby dramatically straining housing affordability.

Enter today’s guest, Mazyar Mortavazi, President & CEO of TAS Impact, an unconventional impact company that uses real estate as a tool to tackle climate change, broaden affordability and equity, and build social capital to create neighbourhoods– and ultimately cities – where people thrive and belong. TAS Impact is a Certified B Corporation, a signatory to PRI and a member of the Global Impact Investing Network (GIIN), TAS pursues opportunities that create value for investors and generate measurable social and environmental impact.

During this episode, Mazyar and I discuss the current state of the real estate market and how we got into the affordability predicament we’re in, the institutionalization of residential real estate investing, the ESG and impact issues with conventional real estate development, new investment models addressing housing affordability, TAS Impact’s impact measurement framework, and the importance of inviting communities into the property development process. And be sure to stay tuned to the very end when Mazyar discusses where he sees the real estate industry headed in the next decade.

• Tas Impact Framework
• Inaugural Annual Tas Impact Report 2022
• Mazyar’s Twitter

Resources from the episode announcements:

• Check out Criterion Institute’s new podcast
• Discussion of Employee Ownership Trusts

While the field of social finance and impact investing has blossomed in recent years, most people still tend to think about donating or impact investing as discrete activities with discrete approaches or strategies.

Say the word "philanthropy" and most people think of oversized cheques at black-tie galas where your donations are spent by organizations on goods, services, and programs. Say the words "impact investing" and most people think of rigorous due diligence where your money can be leveraged far more through investment and reinvestment.

But what would happen if we combined the two approaches? That's what today's guest is here to discuss. Farahnaz Karim is the Founder & CEO of Insaan Group; a non-profit raising donations which the organization uses to invest in innovative businesses and solutions for the poor, a term they call "catalytic philanthropy".

Farahnaz is a social entreprenur, political scientist, and humanist. She has worked with the OSCE, the United Nations, the World Bank and non-profits across a wide range of developing countries across multiple continents. Farahnaz was previously a teaching fellow at Harvard University and a faculty member at Zayed University in Dubai lecturing on global history and humanities. She holds an MPA from Harvard, a Diplôme d’Etudes Supérieures from the Graduate Institute of International and Development Studies (Switzerland) and a Bachelor of Arts from McGill University (Canada). And if all that wasn't enough she is currently a doctoral candidate at the University of Exeter (UK).

During this episode, we discuss Insaan's unique approach, the contexts in which it is most effective, how Insaan makes investment decisions, the unique ways they engage donors through the process, examples of entrepreneurs they've invested in, and their current fundraising campaign. And be sure to stay tuned to the very end where we discuss how Insaan measures and manages impact.

Resources from this episode:

• Insaan Group Website, Instagram, Facebook, and Twitter
• Farahnaz's Bio
• Farahnaz's Alliance Magazine article "The Nature of Capital and Other Threats to Impact"

Today there is a growing recognition that we need to get far more capital into the hands of people who have been systematically excluded from entrepreneurship. Historically capital has disproportionately been allocated to a very narrow slice of entrepreneurs who are ivy league educated, white men. Meanwhile, women, people of colour, LGBTQ and Indigenous communities, and many others have been systematically excluded.

And while today there is a growing number of funds, incubators, and accelerators that have been established to get capital into the hands of a much more diverse group of entrepreneurs, we still have a long way to go.According to RateMyInvestor and Diversity VC's second "Diversity in U.S. Startups" report, "VC-backed startups in the United States are still significantly male (89.3%), white (71.6%), based in Silicon Valley (35.3%) and Ivy-educated (13.7%)."

Part of the problem is that those who allocate capital to entrepreneurs (e.g. fund managers) are still mostly represented by wealthy white men. According to our next guest's research, of the roughly $70 trillion of investment assets in the United States, just about 1% is managed by diverse asset managers.

In this episode, we're joined by Bahiyah Yasmeen Robinson, Founder & CEO of VC Include. What distinguishes Bahiyah's efforts are that while others are focused on supporting diverse entrepreneurs, Bahiyah's efforts are focused on supporting diverse fund managers. Bahiyah's expertise in leading technology, investment, and social impact initiatives since the early 2000s culminated in her creating VC Include in 2018 to build platforms and programs for diverse emerging managers globally. VC Include was established to meet the market opportunity by building an ecosystem of women, Black, Latinx, Indigenous, and LGBTQ+ fund managers.

During the episode, we discuss who and why certain groups of people get systematically excluded from the private equity industry, conscious vs unconscious bias, the moral imperative, structural inequalities, and how VC Include supports diverse emerging fund managers to overcome the hurdles that prevent them from raising and managing more capital.

Resources from this episode:

• VC Include website, Twitter, and LinkedIn
• Gender Lens Investing In and By Private Market Funds, During the Global COVID-19 Pandemic: a View from Capital Connect written by Bahiyah and Suzanne Biegel 

As much as investing for both purpose and profit is in vogue these days, there's still a wide gap between the number of people talking about impact investing and those doing it. The fact that impact capital doesn't flow nearly as freely as traditional investment capital, makes scaling a social enterprise or raising an impact fund all the more difficult.

My guest today is Keith Ippel, CEO and Founder of Spring Activator in Vancouver, British Columbia. Spring Activator works with purpose-driven entrepreneurs at an early stage by providing incubation, acceleration, and investment readiness programming. The organization also works on the demand side of the impact investing equation by helping train impact investors to find and due diligence deals.

Keith founded the organization nearly eight years ago and is still incredibly passionate about building the entire impact investing ecosystem. Keith is a reformed Management Consultant who, after being raised by entrepreneurs, was dragged back into entrepreneurship through the opportunities he was seeing for technology to solve real-world problems. After a successful run leading a variety of technology-based businesses, Keith began seeing the opportunity to nurture the field of impact investing and launched Spring Activator.

During the episode, Keith and I discuss the state of the impact investing space globally and in Canada, what support early-stage social entrepreneurs need to scale their businesses, how to reduce the talk-action gap in impact investing, and how his organization helps investors learn how to become impact investors. And be sure to stay tuned to the very end where Keith discusses his outlook for impact investing over the next decade.

• Spring Activator Website
• Spring Impact Investor Challenge

Mining is an inherently challenging industry from an impact perspective since it's all about the removal and consumption of the earth's limited natural resources. The manner in which we have historically mined these resources has caused great harm to people, communities, and our planet.

At the same time, our existence (as it stands today) absolutely depends on mining to provide everything from the minerals we use in virtually all of our toiletries (makeup, vitamins, toothpaste, soap, etc.) and the fertilizer we use to grow food, to the metals we use essential to necessities like cars, buildings, roads, mobile phones, and medical equipment.

Plus, mining is a massive industry that contributes greatly to wealth creation for an exceedingly large number of people globally. In Canada, nearly 700,000 people work either directly or indirectly in mining and receive the highest average wage/salaries of any industry in the country.

Since it isn't possible in the foreseeable future to stop mining entirely it seems abundantly clear we need to shift our focus to reducing demand and improving mining sustainability.

Enter today's guest, Elizabeth Freele, Co-Founder and Managing Partner at Sympact Advisory, based in Vancouver, Canada. Liz, is a passionate social sustainability strategist and futurist entrepreneur, supporting everything from pre-seed to mature enterprises in challenging operational environments across the Americas, Africa, Europe, and the Middle East. She holds an MBA from IE Business School, a certificate in Sustainable Business Strategy from Harvard Business School, and a BA in Political Science and Global Development from Western University.

Liz and her colleagues at Sympact work with companies to help improve their social performance to foster both company and community resilience. And given Liz's long background in the mining industry, the organization has quickly established a stronghold there.

In today's episode, I sit down with Liz to flesh out the nuances of the ESG impacts of the mining industry from an ESG perspective and the practical opportunities for improving its sustainability. During the episode, we discuss the state of mining today, just how dependent we are on the industry, the most harmful practices that need to end, how mining companies can do better, and which organizations she sees as leaders in the space. And be sure to stay tuned to the very end when Liz discusses her views on where there is the most opportunity for impact investing in the mining industry.

• Sympact Advisory Website
• Liz's Podcast: Prospecting Purpose
• Summit Nanotech (Alberta company extracting Lithium from old oil wells)
• Liz's book recommendation: Collapse: How Societies Choose to Fail or Succeed by Jared Diamond

In a meeting hosted by the Rockefeller Foundation in Italy in 2007, the term impact investing was coined. Yet seven years prior to that, in 2001, Sir Ronald Cohen (just Ronald Cohen at the time) was requested by the UK Treasury to establish the Social Investment Task Force (SITF). The SITF was tasked with exploring the ways in which the UK could create wealth, spur economic growth, and improve the lives of its most vulnerable people at the same time. It was his work here where he and his colleagues developed much of their thinking on impact investing.

Only a year after establishing the SITF, Ronnie (as he prefers to be called) would become Sir Ronnie, not for his work in impact investing but for his three decades of work essentially bringing venture capital to the UK. Ronnie was only 26 years old when he co-founded Apax Partners, a private equity firm that would grow to manage $50B in assets with offices across the globe.

By 2013, then Prime Minister David Cameron asked Ronnie to lead the G8 Social Investment Task Force (G8T) in order to "catalyze a global market in social impact investment." Not long after that he was then asked by the British Government to lead an effort to expand the G8T further globally and resulted in him establishing The Global Steering Group for Impact Investment (GSG) in 2015.

During this time, Sir Ronnie also contributed to creating the world's first Social Impact Bond which aimed to reduce recidivism rates at the Peterborough Penitentiary in the UK. He and his colleague's findings on SIBs were articulated in a now-famous report "Impact Investment: The Invisible Heart of the Markets" which kicked off a movement to spread the idea of impact investing across the world.

All of that amounts to one hell of an impressive career by any standard but especially for a refugee who fled Egypt as a result of the Suez Crisis in the 1950s. At 11 yrs old, Ronnie and his parents arrived in the UK with just a single suitcase each and Ronnie clutching his precious stamp collection in his arms. Therefore, it is my great honour to welcome Sir Ronald Cohen to the podcast.

Show Notes:

• Sir Ronald Cohen, Impact: Reshaping Capitalism to Drive Real Change (Ebury Press, November 3, 2020)
• Harvard's Impact-Weighted Accounts Initiative
• Yuka mobile app (deciphers product labels and analyzes the health impact of food products & cosmetics)
• Episode 5 of this podcast where we discuss: "Following the birth of the Social Impact Bonds"

*** Enter our giveaway to win a $500 impact investing prize pack by visiting www.davidoleary.ca/giveaway ***

Access to safe and affordable housing is absolutely essential to meeting humanity's most basic needs. Housing not only protects us from the elements but provides security and stability that's so important to our physical, emotional, and mental health. Yet even in the world's most developed markets, housing affordability is approaching crisis levels.

For nearly 40 years now - with the exception of a few dramatic market corrections (e.g. in the early 1980s and 2008) - housing prices have soared, far exceeding the asset class's long-term expected returns. For instance, according to The S&P CoreLogic Case-Shiller 20-City Composite Home Price NSA Index, real estate has doubled since 1980. Meanwhile, in Canada, home prices have nearly quadrupled over the same period. The problem is particularly acute in cities like Toronto, Munich, Hong Kong, Frankfurt, Amsterdam, Vancouver, Paris, and Zurich which all top the charts of the UBS Global Real Estate Bubble Index 2020.

As the global pandemic has taken hold, housing prices have only continued to surge in many markets across the globe, furthering the already staggering wealth gap between the rich and poor. Today's guests Garth Davis and Andy Broderick are Managing Partners at New Market Funds based in Vancouver, British Columbia, where they structure high-impact investments that provide affordable housing in vulnerable communities across Canada.

During the episode Garth, Andy, and I discuss just how bad housing affordability is getting, some of the additional barriers vulnerable communities face in accessing affordable housing, the economics of affordable housing, the importance of community-based non-profit partners, and the various ways New Market Funds is tackling the problem. And be sure to stay tuned to the very end when Andy and Garth discuss the opportunities and challenges for the industry over the next decade.

Resources from this episode:

New Market Funds line up:

• Affordable Housing Equity
• Community Real Estate Development
• Community Lending
• Co-operative Enterprise Investment

*** Enter to win a $500 impact investing prize-pack! Entry is free. The deadline is Sept 4th, 2021. Visit www.davidoleary.ca/giveaway to enter!

In 1952, Harry Markowitz published a now-famous article where he proposed that investors should optimize portfolio expected return relative to volatility. Markowitz helped investors realize that by owning a diverse basket of investments, they could significantly reduce their risk without suffering a commensurate reduction in their expected return. This insight marked the birth of Modern Portfolio Theory (MPT) and, by the late 1960s would come to change how investors across the globe thought about investing. The trouble is, some of the assumptions underpinning MPT are keeping more investors from embracing ESG and impact investing.

Today's guest Jon Lukomnik joins us to discuss his new book Moving Beyond Modern Portfolio Theory: Investing That Matters. In the book, which is co-authored by James Hawley, Lukomnik and Hawley give a thorough accounting of how many of the assumptions underlying MPT are unrealistic or mistaken. For instance, MPT dictates that investors can mitigate systematic risks (the risks inherent in specific investment) through diversification but cannot influence large systemic risks (threats to the entire system) such as climate change or massive geopolitical instability. Lukomnik and Hawley argue that investors can and do affect systemic risks. For evidence, one need look no further than the 2008 financial crisis where investors fueled the rise of Mortgage-Backed Securities and other collateralized securities that eventually threatened to topple the global financial system. Similarly, MPT is wrong to assert that investors cannot mitigate systemic environmental or social risks like climate change. They can. But doing so requires investors to utilize tactics that aren't part of their traditional toolbox (e.g. shareholder engagement, policy & advocacy, etc.).

Jon is well-positioned to write this book. He is currently Managing Director of Sinclair Capital, a consultancy to institutional investors and formerly was a senior city official running New York City’s pension funds where he oversaw $80 billion in assets. He also co-founded the International Corporate Governance Network (ICGN), which now represents investors from 43 countries, overseeing some $42 trillion in assets. Jon has been a board member of public, private and not-for-profit companies.  He is a three-time recipient of the NACD’s Directorship 100 award for being one of the 100 most influential people in US corporate governance. He has also been honoured by the ICGN, Ethisphere, Global Proxy Watch and others.

In this episode of the podcast, Jon and I discuss the major arguments from his book including; the importance of MPT; some of the flaws in its underlying assumptions; how the very success of MPT has further undermined the assumptions that underpin it; and why MPT apologists who argue that ESG and impact investing will underperform have it wrong. And be sure to stay tuned to the very end when Jon responds directly to a conversation from an investment podcast where the experts argue that ESG and Impact Investing is doomed to underperform.

ENTER OUR GIVEAWAY - for a chance to win an awesome impact investing gift pack that includes a $250 Patagonia gift card, a 60 mins impact investing coaching call with yours truly, and two great impact investing books (including Moving Beyond Modern Portfolio Theory). Visit www.davidoleary.ca/giveaway to enter to win. 

Resources from this episode:

• Moving Beyond Modern Portfolio Theory: Investing That Matters by Jon Lukomnik & James Hawley
• Jon Lukomnik's firm Sinclair Capital
• Ep 124 of the Rational Reminder Podcast with Professor Lubos Pastor

When we think about impact investing, art isn’t the first thing that comes to mind for most of us. Yet investors have used art to store and grow wealth for millennia. And few of us would deny the incredible power that art possesses to change hearts and minds and to motivate us into action. Who among us wasn’t touched deeply by Amanda Gorman’s spoken word poem, “The Hill We Climb” at Joe Biden’s inauguration earlier this year?

But few of us, artists included, consider carefully how we might use our artistic talents to create, or our capital to finance, art as a force for social and environmental impact. In this episode of the podcast, I sit down with art activist and changemaker Benjamin Von Wong.

Von Wong's work lies at the intersection of fantasy and photography and combines everyday objects with shocking statistics. His work has attracted the attention of corporations, like Starbucks, Dell, and Nike and has generated over 100 million views for causes like ocean plastics, electronic waste, and fashion pollution. Most recently, he was named one of Adweek's 11 content-branded masterminds. He is also the host of the Impact Everywhere Podcast.

During the episode, we discuss how Benjamin chooses causes to tackle,  how he conceives of his installations, the logistics that goes into creating them, how he finances his projects, and how he thinks about impact measurement. And be sure to stay tuned to the very end where Benjamin touches on how he thinks about the new world of NFTs which are changing the economics for artists the world over.

Resources from this episode:

• You can reach Benjamin and view his amazing work at https://www.vonwong.com/ or inquire about commissioning him at https://unforgettablelabs.com/
• Von Wong’s art installations that we discuss during the episode:
  • Strawpocalypse
  • Truck Load of Plastic
  • Toxic Laundry
  • Fast Fashion
  • E-Waste
  • Walking on Air for Nike
  • 10,000 plastic bottles, a mermaid, and a single wish
  • Underwater Shipwreck in Bali
• Benjamin’s Podcast: Impact Everywhere
• Follow Benjamin Von Wong on Facebook, Twitter, Instagram, Youtube, and LinkedIn.