Key
Working with our investment advisors, we developed a straightforward framework encompassing the range of tools we use and the impact we seek to realize across our portfolio. It includes five levels with increasingly greater mission alignment and intentional, measurable, and quantifiable impact.
For us, this framework optimizes structure and consistency for asset allocation (or reallocation) and streamlines decisions in a way that evolves with our mission and objectives.
Level 1: Negative ESG Screening
We use “negative screens” on securities or industries to avoid investments that run counter to our mission, including fossil fuels and highly carbon intensive industries that can harm the environment.
Level 2: Positive ESG Screening and Shareholder Engagement
We also use “positive screens” or “tilts” to overweight our portfolio towards certain investments such as clean technology. The large exposure for this part of the portfolio is passive investments or an index-based approach. As shareholders, we take advantage of voting proxies and co-filing corporate resolutions on topics that support our mission.
Level 3: ESG Integration
A significant portion of the portfolio is structured around investment strategies that integrate “environmental, social, and governance” (ESG) factors. For example, in response to a global trend around climate change and resource scarcity, we seek to invest in companies that lower greenhouse gas emissions and increase food production in climate sensitive ways. The exposure for this part of the portfolio is active management, and includes public equities, fixed income, and alternative investments.
Level 4: Thematic/Place-Based Investing
We use “thematic investing” to further focus our portfolio on specific categories that align with our mission, such as sustainable forestry, agriculture, clean tech, equity, inclusion, affordable housing, etc. We also make investments that are “place-based” – deploying capital to the Pacific Northwest region, which is where we do a majority of grant making in fulfillment of our mission.
Level 5: Capacity Building/Program-Related Investments
Our investing strategy allows for smaller “catalytic” investment opportunities that have the potential for outsized environmental or social returns. These investments may be higher risk or might have lower return expectations in the short term; but we consider them to be truly innovative and transformative business models. Included in this bucket are first-time funds, direct investments, and new business models that advance social and environmental goals.
Our Impact Investments
The following is a representative sample of TRFF impact investments as of June 30, 2023.
Each investment falls along our “Spectrum of Impact” levels as defined in the key above.
A sustainable, fossil free fixed income strategy with ESG/low-carbon tilts
$9,338,410
A fossil-free, low-carbon passive mandate that is 80% less carbon intensive than its benchmark, the Russell 3000
$9,765,481
A concentrated, quality-oriented mid-cap equity manager pursuing deep ESG shareholder engagement
$4,781,776
A hedged equity strategy investing in growth companies delivering technology-led innovation for positive social change in “rest of world” (ex-US/ ex-China)
$691,241
SOSV III LP
Seed, venture, and growth stage accelerator investing in life sciences, technology, and food systems
$1,150,000
Founders Co Op V
Pacific Northwest seed-stage venture fund
$1,000,000
Harlem Capital Fund II
Venture Capital firm focused on changing the face of entrepreneurship by investing in 1,000 diverse founders over the next 20 years
$500,000 Commitment
Capricorn Growth Equity Fund II
Growth Equity, Technology Focused
Within Global Impact Access PartnershipI and II
Quona Accion Financial Inclusion Fund III
Financial Inclusion, Emerging Markets
Within Global Impact Access Partnership II
National affordable housing fund focused on transit oriented development and energy efficiency measures
$1,000,000
Waste-to-energy, clean tech fund focused on anaerobic digestions
$1,000,000 Commitment
Sustainable and organic agriculture fund focused on farmland on the west coast
$2,000,000
Pacific Northwest sustainable forestry and ecosystem services fund
$2,000,000
Inclusive global early stage venture capital/accelerator focused on biosciences, clean tech, sustainable foods
$3,150,000
Global Impact Access Partnership
An access vehicle investing in private equity and venture capital strategies across environmental sustainability and socio-economic development themes
$8,000,000 Commitment
Sustainable timber and ecosystem services fund
Within Global Impact Access Partnership
Owl Ventures IV (Education Technology VC)
Venture capital education technology fund
Within Global Impact Access Partnership II
Vision Ridge SAF III (Sustainable Real Assets VC)
Sustainable real assets around energy and aquaculture
Within Global Impact Access Partnership II
Sustainable real assets and electric vehicle infrastructure fund
Within Global Impact Access Partnership
Sustainable real assets and electric vehicle infrastructure fund
Within Global Impact Access Partnership II
Vision Ridge SAF III
Sustainable real assets around energy and aquaculture
Within Global Impact Access Partnership II
Greenbacker Renewable Energy Corp
Renewable Energy Infrasatructure
$2,051,925
Vision Ridge SAF II
Sustainable Real Asset Funds
Within Global Impact Access Partnership
Excelsior Renwable Energy Fund
Venture Capital Renewable Energy Strategy
Within Global Impact Access Partnership
Global Impact Access Partnership II
An access vehicle investing in private equity and venture capital strategies across environmental sustainability and socio-economic development themes
$4,500,000
Early stage financial inclusion fund in emerging markets
Within Global Impact Access Partnership
Growth equity financial inclusion fund in emerging markets
Within Global Impact Access Partnership
Seed, venture, and growth stage accelerator investing in life sciences, technology, and food systems
$2,000,000; Within Global Impact Access Partnership
Venture capital firm investing in female technology entrepreneurs
Within Global Impact Access Partnership
Valiant Peregrine Speical Opp
Invests in market leading growth companies in the tech, consumer, and services industries
Within Global Impact Access PartnershipI and II
SOSV Decarbonization
Seed, venture, and growth stage accelerator investing in life sciences, technology, and food systems
Within Global Impact Access Partnership II
SOSV V LP
Seed, venture, and growth stage accelerator investing in life sciences, technology, and food systems
Within Global Impact Access Partnership II
Morgan Stanley AIP PMF Integro Fund I
Economic development in emerging and frontier markets
$500,000
Business Impact Northwest
Regional Community Development Financial Institution serving under-banked entrepreneurs
$500,000
Alternative to traditional cash management leaverages the community banking system to drive small business lending and community reinvestment
$56,991
Community bank aligned with B-Corp and Global Alliance for Banking on Values
$343,217
Place-based Credit Union using proceeds to meet the credit needs of underserved families
