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 April 29th, 2020.
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
$ 18,253,101
A fossil-free, low-carbon passive mandate that is 80% less carbon intensive than its benchmark, the Russell 3000
$ 29,154,121
A sustainable, fossil fuel free global equity strategy, UN PRI Signatory
$ 19,790,197
Clean-tech hedge fund focused on renewables and resource efficiency
$ 4,033,272
High yield credit strategy that integrates ESG factors into the investment decisionmaking process
$ 2,748,425
Low carbon emerging markets equity strategy that combines ESG analysis with a deep focus on shareholder activism
$ 5,243,205
A concentrated, quality-oriented mid-cap equity manager pursuing deep ESG shareholder engagement
$ 5,000,000
A hedged equity strategy investing in growth companies delivering technology-led innovation for positive social change in “rest of world” (ex-US/ ex-China)
$ 3,500,000
A leading provider of pre-construction financing to small and mid-sized clean energy infrastructure (wind and solar) projects and companies.
Within Global Impact Access Partnership
A growth equity specialist that invests in businesses providing high quality financial and healthcare products to underserved communities in Africa and Asia.
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
$6,000,000 Commitment
National affordable housing fund focused on transit oriented development and energy efficiency measures
$1,000,000 Commitment
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 Commitment
Pacific Northwest sustainable forestry and ecosystem services fund
$2,000,000 Commitment
Inclusive global early stage venture capital/accelerator focused on biosciences, clean tech, sustainable foods
$2,125,000 Commitment
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 real assets and electric vehicle infrastructure fund
Within Global Impact Access Partnership
Sustainable timber and ecosystem services fund
Within Global Impact Access Partnership
Accoin Quona Inclusion Fund
Within Global Impact Access Partnership
Leapfrog Emerging Consumer Fund III
Within Global Impact Access Partnership
SOSV IV
Within Global Impact Access Partnership
Rethink Imapct II Fund
Within Global Impact Access Partnership
Place-based land banking strategy for community outcomes
$250,000 Commitment
Place-based revolving CDFI loan fund and trageted Puyallup Septic Loan Fund
$200,000 Commitment
Community bank aligned with B-Corp and Global Alliance for Banking on Values
$ 124,354
Place-based Credit Union using proceeds to meet the credit needs of underserved families
$ 101,240
Place-based loan for revitalization and community development
$1,500,000 Commitment
Mission driven company that supports regional food systems
$500,000 Commitment
Alternative to traditional cash management leaverages the community banking system to drive small business lending and community reinvestment
