Sustainability Investments: Process and Tools
Sustainability Investment Process
This flow chart shows how our Foundation manages Sustainability Investments (SUIs). There are four phases: Pipeline Generation, Deal Analysis & Decision, Implementation, and Monitoring & Reporting. Each phase identifies critical path action items and task ownership.
Sustainability Investment Process
Sustainability Investment Tools
Raúl Pomares together with Doug Bauer of Rockefeller Philanthropy Advisors and the KL Felicitas Foundation have developed tools for supporting the due diligence steps for each investment category. A PDF version of the SUI Evaluator tool can be downloaded at the end of this page. We encourage other social investors to use this tool. If you are interested in receiving the source file, please contact info@klfelicitasfoundation.org.
The SUI Evaluator tool is designed to work in conjucntion with a formal investment due diligence process. It allows a foundation to assess, document, and define roles for evaluating any given investment opportunity in the areas of:
- Investment structure, portfolio implications and financial performance reporting
- Alignment with Mission or Program
- Establishing Sustainability 'Impact' criteria
Social investors may be as detailed as they like in documenting the responses to the various questions. For examples of how we use the SUI Evaluator tool, please go to SUI Investment Section.
A scoring system is used to establish a more objective framework for evaluating SUI investments. It is important to document a pass or fail scale for scoring results. We use a very simple scoring system of -1, 0, and +1 to document if a given investment is either compliant, neutral, or not compliant with the various guidelines and objectives as expressed in the questions of the Evaluator tool. If an investment scores -1, an explicit exception will have to be made before moving forward.
For effective use of this tool, it is important to have a defined mission, a documented investment policy with portfolio objectives, an established investment due diligence process, and a commitment to Sustainability Investments.
© Raúl Pomares. All rights reserved. The SUI Evaluator tool is not intended for commercial use. Users may utilize this tool only for personal and private use. Please review our Terms and Conditions before downloading.