Gender Lens Investing: Earth Equity Advisors Offering the Social Index Portfolio
Earth Equity Advisors is now offering a unique investment portfolio that has been managed by Green Alpha Advisors, LLC since 2015, and is constructed using powerful leadership diversity and sustainability lenses. Green Alpha’s Next Economy Social Index utilizes unique gender & social inclusion criteria based on the following real-world evidence and academic research:
- Diverse teams perform at higher levels than homogenous ones because they are more creative. A wider variety of input from team members enables a team to better identify problems and develop solutions.
- Non-homogenous teams tend to outperform because they evaluate more facts and process those facts carefully.
- Research demonstrates that companies with more women are more likely to introduce radical new innovations into the market over a two-year period.
- Diverse teams are more likely to achieve both short and long-term goals than homogenous teams.
The companies that make up the Next Economy Social Index are actively researched by Green Alpha, and are chosen from the list of sustainable, Next Economy Index companies (to learn more about Green Alpha’s Next Economy Investment Philosophy, visit their website). The companies with strong female representation on the board or in a leadership position are added to the Social Index, and additional portfolio weight is given to companies where women hold positions of significant authority, women have especially strong representation in leadership and/or corporate policies are socially inclusive.
“Gender diversity is clearly just one material aspect of any given team’s composition, but an important one that clients are asking about. Clearly, investors are recognizing the value of diversity, too,” said Betsy Moszeter, Investment Committee member and COO of Green Alpha Advisors. “Done correctly, a diversity-centric portfolio can offer investors the opportunity to earn higher return-on-equity, benefit society and reward companies that recognize the top and bottom-line impacts of significant female representation in leadership and on their board of directors.”
“As always, we continue to believe that innovation—especially risk-mitigating innovation—is a clear long-term path to competitive returns,” said Garvin Jabusch, Green Alpha’s Chief Investment Officer. “Since diverse teams have repeatedly proven to be superior innovators, it makes clear sense for us at Green Alpha to add this approach to our strategies.”
We have the utmost respect for the Green Alpha team’s curiosity and dedication to research and innovation. Schedule an appointment or give us a call to learn more about investing in the Social Index.
Learn more about Gender Lens Investing.
Green Alpha is a registered trademark of Green Alpha Advisors, LLC. Green Alpha also owns the trademark to “Next Economy.”
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