Insights

Do You Know Your Investment Portfolio’s Net Impact? We Do. And Here’s Why You Should, Too

net impact report - image a woman shopping

Everything we do  — and every choice we make — has a net impact on the planet and society. 

Consider your choice of morning coffee. By buying your chosen brand, you are inherently supporting not only the company that makes it, but also all of that company’s suppliers and distributors, too. With one seemingly small decision, you’ve created a cascading effect of impact. In this way, every one of us can be a changemaker.

We can also use our investment portfolios to create change. 

All portfolios make an impact, and the impact can be positive, negative or a bit of both. Some impact-focused investors prefer to screen out as much negative impact as possible from their portfolios, while others aim primarily to support companies making a positive net impact.  

All investment portfolios make an impact. Is yours positive? Negative? A bit of both?

At Genus, we’ve created Fossil-Free™ and Impact investing solutions to create positive impact. More specifically, we’ve divested of companies that have a negative effect on society and the planet.

“Most people who invest in impact funds want to do more good than harm and have an overall positive impact,” says Mike Thiessen, Genus’ director of sustainable investments.

Introducing the Net Impact Score™

The net impact score is a tool we’ve developed to account for both the beneficial and the destructive nature of investments. 

ESG: Do You Know Your Investment Portfolio’s Net Impact?- United nations 17 sustainable goals chart: no p[poverty, zero hunger, good wealth and well-being, quality education, clean water and sanitation, affordable and clean energy, decent work and economic growth, industry innovation and infrastructure, reduced inequalities, sustainable cities and communities, responsible consumption and production, climate action, life below water, life on the land, peace justice and strong institutions, partnership for the goals,

We evaluate all of our investments according to the United Nations’ 17 Sustainable Development Goals, which include eradicating global poverty and hunger, boosting gender equality, health and well-being, providing for basic needs like clean water and education, protecting life on land and in water, furthering climate action and driving positive innovation, among others.  

Companies that derive 100% of their revenue from products and services that meet one or more of these 17 goals would receive a score of 100% positive net impact. Conversely, businesses that derive most or all of their revenue from products or services that negate these goals (think tobacco, oil and gas, gambling, adult entertainment, factory farming and GMO, junk food, etc., would receive a negative impact score. 

Most investment portfolios have both positive and negative impact scores. The net impact score is the positive impact score minus the negative impact score. Here are some examples of what that can look like:

Thiessen says the average investor — “even someone who is socially and environmentally conscious,” probably has a lot of negative impact in their investment portfolio without necessarily realizing it. “If you have a traditional Canadian portfolio, it’s going to have lots of companies that extract, process, or transport oil and gas, because they make up about 24% of the Toronto Stock Exchange,” he says. “Most Canadian funds are going to have a negative impact, while most global funds have a neutral impact.”

a green field with the orange sun in the background and a windmill far behind

Genus’ Fossil Free High Impact Equity Fund investment portfolio achieves its positive net impact by investing in areas such as health care, technology and alternative energy companies. “Our Fossil Free High Impact Equity fund typically has a higher health care allocation than the market,” Thiessen says. “And it includes industrial companies creating new, innovative energy efficient technologies,” such as Vestas, which designs, manufactures and installs wind turbines and happens to have a 100% net positive impact score.

So, do you know the net impact of your investments? We can help you find out — and ensure you’re making the kind of impact that aligns best with your values. 

Learn more about the impact of your portfolio or get in touch to chat about how we can help increase your positive net impact.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email

Client impact

“Graduating from a big bank to Genus was one of the best financial steps we've ever taken. Genus has delivered reliable asset growth despite our moderate risk tolerance. As our financial security has grown, we've also been the beneficiaries of a great client experience. The company's communications have been consistently transparent and informative, including educational webinars and a well-designed web portal where we can track investments daily. Most importantly to us, our portfolio manager has always responded swiftly and thoroughly to our questions and requests. ”
Martin T.
"Having relatively diverse financial goals and needs, along with a slight reticence regarding the stock market, Genus skillfully addressed all of our concerns, and put together a truly exceptional plan: Fossil free funds and a diversified investment portfolio, check; An effective Impact investment portfolio that coincides with our hopes and dreams for a better world, check; Professional advice and assistance to create a donor advised charitable fund with immediate charitable receipts for tax purposes, check. Returns? Way beyond our expectations! We even had some fun along the way and certainly enjoyed an incredible two-year start to what will be a satisfying long-term relationship with Genus."
Marc B.
“I love the service I get at Genus.”
Chris H.
“Leslie and I were fellow board members when we met twenty years ago. For the last ten she has been thoughtful in the construction of an investment strategy for my family and is executing the strategy as planned. The team at Genus has met my expectations and are a pleasure to deal with.”
Bob Q.
“For over 15 years, I have provided selection and performance evaluation of multiple investment managers for a significant family office. Leslie and Genus have been foundational for me in my role. I have always found Leslie and her colleagues to be insightful and proactive, and found the performance of their portion of the portfolio to be well above benchmarks. And they have been a great pleasure to work with.”
Douglas H.
“Genus is a very innovative firm. I am pleased to invest in their Fossil Free and Impact strategies that help me invest in line with my values.”
Marnie C.
“Great team of professionals. Excellent website and reporting. Responds to inquiries promptly. Very pleased with the process of changing from another company to Genus as well. Kudos.”
David L.
“Genus consistently provides a good, clearly explained, comprehensive picture of the general economic and financial situation, along with an excellent account of the investment decisions made in relation to this. Genus’ equally strong concern with clients’ questions and requests for further information is also a very important part of the service it provides.”
Allan S.
“Back in 1992 when I found myself at fifty with a substantial amount of money to invest, I knew just one thing — that I didn’t want to contribute to tobacco companies, arms manufacturers, or oil. But over the ensuing years the options for socially responsible investing have become far more sophisticated and I’m very happy that this is a big part of the Genus approach. I also very much appreciate the long-term relationship with my portfolio manager, Mary Lou.”
Ann P.

As seen in

Are you ready to make an impact
with your investments
?