This post is part of a series covering the Social Capital Markets 2008 Conference, which 3P is excited to be a part of.
Napoleon Wallace — The 2008 Social Capital Markets Conference is truly laying the groundwork for the social capital sea change, and as mentioned in the “Value of Values”, this conference is giving us our first peek into this revolutionary space. So who are the players “making the market?” Which are the companies operating at the intersection of money and meaning?
To give one such example, I had the pleasure of speaking with Jessica Skylar of HIP Investor to discuss the HIP methodology, HIP’s place within the social capital sea change, and HIP’s possible impact on core investment methodology.
To date, HIP has pioneered the HUMAN IMPACT + PROFIT investment methodology, which provides investors with a framework to analyze a company’s HUMAN IMPACT on Health, Wealth, Earth, Equality and Trust, as well as, it Financial Profitability.
So what are the implications of viewing investments this way?
Last fall, the Rockefeller Foundation convened a group of impact investors, later named the Rockefeller Impact Investing Collaborative (RIIC), to determine the best methods for attracting fresh capital to the impact space.
As a result of the working group, the RIIC in partnership with Social Venture Technologies concluded that:
* Impact investing would be more attractive to new investment if the relationship between financial returns and impact were illuminated, and
* HIP Investor was identified as the “best hope” among 24 leading methodologies to systematically surface the interrelationship between impact and profitability.
I’d say that’s quite the implication. As declared by R. Paul Herman, CEO of HIP Investor, “The world’s $140 trillion of investments – whether denominated in rupee, rand, real, euro or dollar – are underinvested until they all yield both human impact AND profit.”
So what’s next on the docket for HIP? HIP Funds of course; tracking the S&P 100 & 500, and also prospective funds that focus on the companies that maximize the Health, Wealth, Earth, Equality and Trust considerations within the HIP Methodology.
Now the great thing is that HIP is only one example of the innovation and impact to convene at SoCap08 in a few weeks. This is the efficient frontier… and I am excited to be a part of it. I look forward to seeing you there.
Napoleon Wallace is a member of UNC Kenan-Flagler’s MBA Class of 2010. Napoleon spent the 4 years prior to business school as an investment banker and sell-side energy analyst, and he’s currently engaged in two sustainability-focused projects within UNC’s Center for Sustainable Enterprise and 4th Sector Bank.