by Amanda Lawson

Business is creating a solution to a problem. The problem is that it’s the people with capital who typically decide which problems get solved.

So, what happens when systems and institutions are set up in ways that tend to overlook people and communities facing some of the most deeply-rooted problems? What do we do when capital rests exclusively in the hands of those who remain unaware of these problems?

Oye Waddell, founder of Hustle PHX (Phoenix), explained that communities are rife with latent talent that has been stifled due to systemic racism and limited opportunities. He claimed that “people do business with people they know, like, and trust” but if communities with capital and resources are not engaged with minority communities, that talent remains untapped.

A burgeoning group of investors has decided to do something about this gap. In recent years, several accelerators and funds have emerged with the focus of enabling growth of sustainable business run by people in traditionally underserved communities, especially people of color.  Here, we highlight four that are driven to this mission as a result of their faith.

Hustle PHX

https://hustlephx.com

Oye Waddell founded Hustle PHX with a desire to redeem the notion of hustle. A start-up accelerator and early stage fund, Hustle is branching into other major cities around the US to support entrepreneurs of color with intellectual, social, and financial capital. Hustle understands “some of the best natural entrepreneurs in the United States are in underserved urban communities. They are called hustlers—visionary risk-takers who seize the opportunity to move product and turn a profit. They have the God-given skills, attributes, and talents of an entrepreneur, but they lack key resources needed to create sustainable businesses that benefit the broader community. At Hustle PHX, we want to let the hustlers hustle—for the common good.” Waddell used his own experience growing up in underserved communities—and those of his peers—to develop a program that break cycles of poverty by building relational support systems and putting intellectual and financial capital in the hands of entrepreneurs of color.

Collab Capital

https://collab.capital

Collab Capital is an Atlanta-based accelerator studio and fund that creates “a growth solution for black founders seeking capital, who value profitability, ownership, and optionality.” Its founders, Barry Givens, Jewel Burks, and Justin Dawkins built Collab on the belief that “a key pillar to solving the growing US racial wealth gap is business formation and growth in the Black community. In order to ensure more black founded businesses have the resources they need to be successful, the ability to maintain majority ownership, and increase revenue, we’ve designed a new investment model which aligns our interests with those of the founders we support.”

To overcome the lack of generational wealth that often aids entrepreneurs in startup culture, Collab’s mission is to pave a pathway to sustained wealth for the Black community by investing in tech and tech-enabled companies through efficient capital and effective connections between Black innovators, investors, and influencers.

KNGDM Group

https://kngdmgroup.com

Specifically targeting founders passionate about community and social justice, KNGDM Group is driven by guiding principles grounded in “a strong set of values, guiding how our network engages with communities, partners, and government agencies, to ultimately benefit residents & business owners. We believe social impact investments can break systemic cycles.” Founded in 2019,  KNGDM Group already exists in several major US cities as an impact fund that empowers and uplifts communities by building a network of investors and influencers that bring capital and voice to those traditional VC practices have often overlooked. As a private equity/VC fund, KNGDM Group is deeply invested in ensuring a faith-based impact that is both measurable and sustainable.

Brown Venture Group

https://brownventuregroup.com

Paul Campbell founded Brown Venture Group after a frustrating personal experience forced him to confront racism in the business world. Brown is an early stage seed accelerator VC firm focused on emerging technologies that will build generational wealth and remove barriers that have inhibited people of color from realizing their full potential as entrepreneurs. Because of his faith, Campbell ensured that Brown was not only about business success but also deeply passionate about positive community impact. The hope is that by helping groups that have historically struggled to receive support or access to opportunities in entrepreneurship, Brown Venture Group can be a part of raising up entire communities through sustainable wealth generation.

“If your why doesn’t make you cry, it’s not big enough.” -Oye Waddell

When presented with an opportunity to address and overcome deeply rooted barriers to business for communities of color, these are the men and women for whom the why is personal. They are the ones passionately working to put money in the hands of people who need it—people who have consistently been overlooked and ignored. They’re challenging the norm and setting the standards for today’s Faith Driven Investors by helping create tomorrow’s Faith Driven Entrepreneurs.

Article originally hosted and shared with permission by The Christian Economic Forum, a global network of leaders who join together to collaborate and introduce strategic ideas for the spread of God’s economic principles and the goodness of Jesus Christ. This article was from a collection of White Papers compiled for attendees of the CEF’s Global Event.

by Matthew Raines

When former UN Secretary General Kofi Annan stepped to the stage in January 2004 to share a call to action for the global investment community to address the growing environmental, societal, and governance concerns that were interwoven into the capital markets, he began the first ripple in a wave that would grow the following year with the seminal 2005 paper, “Who Cares, Wins.” This led to the historic coming together of the heads of leading institutions from 16 countries to launch the Principles for Responsible Investment in 2006. From that point forward, the tidal wave that became ESG investing has become pervasive in all aspects of the international capital markets and continues to grow at an unprecedented rate. As momentum grows and curiosity is peaked, the question is asked: Just what is ESG investing? At the simplest of levels, ESG investing is defined as “Environmental, Social, and Governance” (ESG), and the criteria are a set of standards for a company’s operations that socially-conscious investors use to screen potential investments. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.

Environmental criteria may include a company’s energy use, waste, pollution, natural resource conservation, and treatment of animals. The criteria can also be used in evaluating any environmental risks a company might face and how the company is managing those risks.

Social criteria look at the company’s business relationships. This includes all relationships and qualities regarding employees, vendors, suppliers, and customers.

Governance criteria pertain to areas where investors may want to know that a company uses accurate and transparent accounting methods and that stockholders are given an opportunity to vote on important issues. They may also want assurances that companies avoid conflicts of interest in their choice of board members and any illegal practices and that they adhere to the proper use of political contributions, executive compensation, and internal controls.

While there are many offshoots to the traditional ESG ecosystem (Socially Responsible Investing, Biblically Responsible Investing, Impact Investing, Sustainable Investing, and more), we will stick to the terminology and broad application of ESG investing for the remainder of the paper.

Over the next two decades, estimates hold that nearly $30 trillion USD in wealth will transfer from the Baby Boomers, the generation of the population born between 1944 and 1964, into 2 the hands of younger generations. Many columnists, journalists, and financial experts have coined this “the great wealth transfer.” As capital flows from one hand to another, the expectation can be set that the way in which that capital is allocated will also shift over time with the transfer of wealth. Why does this matter? With the first sustainable mutual fund launched back in the 1970s, ESG investing is by no means a fresh or new idea, but the larger identifying factor is found in the chart below:

When a character in Ernest Hemingway’s The Sun Also Rises is asked how he went bankrupt, he replies, “Gradually…then suddenly.” The same can be said of how ESG investing came to be what it is today—gradually…then suddenly.

As the millennial generation has come to develop in the form of career-establishing adults, the capital that they have invested, coupled with the “great wealth transfer” noted above, has driven much of the momentum that has been seen in this movement. 76% of millennials think climate change poses a serious threat to society, based on a survey by The Harris Poll, with one-third of millennials investing exclusively in investments that take ESG factors into account. Based on the potential $30 trillion wealth transfer projected over the coming two decades, one could conservatively estimate a nearly $10-$15 trillion inflow into the ESG space. This could push Global ESG assets to nearly $50 trillion by 2025, representing more than a third of the $140.5 trillion in projected total assets under management.

With the millennial generation pushing towards this initiative, it has led a larger group of investors and the capital market ecosystem to join in the conversation. A recent survey conducted by U.S.-based investment management firm, Nuveen, noted that 89% of clients surveyed said that it is “absolutely essential for companies to actively manage against the risk of pollution, spills, and other disasters.” While much of the ESG conversations focus on climate change and the “E” component, investors are becoming more alert to the “G” role, with 91% of clients in the same Nuveen survey stating that companies need to enact more policies to make them more accountable to shareholder concerns.

Groups such as the Business Roundtable in the United States have shifted to a stakeholder value model, whereas individual companies have also stated goals in the space, including Microsoft (MSFT) announcing it would become 100% carbon-negative by 2030, remove its historical carbon emissions by 2050, and launch a $1 billion climate innovation fund.

Starbucks’ (SBUX) “new sustainability commitment” is to become resource positive in terms of carbon emissions, eliminating waste, and water usage. “By embracing a longer-term economic, equitable, and planetary value proposition for our company,” writes CEO Kevin Johnson, “we will create greater value for all stakeholders.”

As Christians, we recognize that the Gospel affects everything and that the Gospel changes everything. When we look at ESG investing, we must do so through the lens of the Gospel. As mentioned in earlier paragraphs, ESG investing has been a movement that can be distinguished by more than just morals but as one that has been observed by real dollars flowing into investments. It is a reminder as stated in Matthew 6:21: “For where your treasure is, there your heart will be also.”

The marketplace will inevitably become more mature, and with that maturity comes an opportunity for Christians to enter the public square and be a voice for the direction that this industry can take. As stated in Proverbs 1:20: “Wisdom cries aloud in the street, in the markets she raises her voice.”

How does a Christian approach ESG investing? How do we find ways to be a representative of Christ as we pursue these investments? We must first remember that in all we do, we must show our love for God by seeking His glory. As the Westminster Shorter Catechism says, “Man’s chief end is to glorify God and enjoy him forever.” Glorifying God through our investments highlights our view that the Father invites us to share in His kingdom. The Christian worldview privileges stewardship, and stewardship does look for growth, stewardship does give a privilege to investment, and stewardship does value savings and thrift. It does prioritize productivity and growth and flourishing.

The Christian is called to be salt of the earth and light of the world (Matthew 5:13-16). As salt acts to prevent decay in food, so should believers act to restrain evil on this earth—which includes doing so with our investable capital. As light illuminates a dark place, so believers should bear witness to the truth. God’s Word is the truth, and it is a public truth which is true for everyone. Christians can utilize their investments within the ESG space as an evangelical tool—one that highlights the goodness of God’s creation, our desire to worship Him in deed, and our ability to demonstrate our trust and faith in Him by way of our investment allocations. As 1 Timothy 6:17-19 states: “As for the rich in this present age, charge them not to be haughty, nor to set their hopes on the uncertainty of riches, but on God, who richly provides us with everything to enjoy. They are to do good, to be rich in good works, to be generous and ready to share, thus storing up treasure for themselves as a good foundation for the future, so that they may take hold of that which is truly life.”

The movement within the ESG space seems to be accelerating with the onset of COVID-19, and the greater focus on societal good and solving for injustices is poised to expand further. Christians must meet the demand for ESG with distinguished and disciplined views based on scripture. A sharper understanding is emerging as to which ESG approaches are financially, or performance, relevant and which are more focused on social objectives. Though we did not explore in any detail in this paper the topic of ratings and scoring, screening criteria, or the development of industry norms (such as the UN Sustainability Goals), these are items to investigate and understand further as you step into this space.

As we evaluate and determine various aspects of ESG investing and recognize that the secular world will continue to push and look to define this space, I am reminded of a short quote from John Bunyan’s Pilgrims Progress, “I focused on the fact that what God says is indeed best. It does not matter if all the men in the world are against it.”

by Matt Glass

We have seen the problems of our economic system and the seemingly insurmountable effects of debt and deflation that could lead to a crash (and soon). Now, let’s flip the coin and think about not the way things are but the way things are supposed to be.

This is something the Father has laid heavy on my heart in recent years. He did this through three simple questions. Let me ask you these three questions as we start to consider together what Eternal Economics should look like.
1. When we get to heaven, will you have to work for food and shelter in order to provide or survive?
2. When we get to heaven, will there be a physical currency that you will have to exchange for goods and services?
3. What would it look like for Heaven’s economy to be established on the earth today?

Now, please don’t expect me to pull out some earth-shattering theology from the Scriptures to provide evidence that answers the first two questions. But as I have meditated on these questions and on God’s Word, I have developed opinions and beliefs that match what I find in Scripture. They also match what I hear whenever I raise these two questions to others. In fact, I have yet to have someone answer yes to either of the first two questions.

A fundamental belief we gather from knowing the Father and from reading the Scriptures is that we will have abundance and not lack in heaven. People will not be providing for themselves by the sweat of their brow anymore. We relish that thought of financial freedom and of an economic model that isn’t built around accumulating a currency or even resources. Will there be gold and luxurious resources in heaven? Of course, more than we could imagine! “And the twelve gates were twelve pearls, each of the gates made of a single pearl, and the street of the city was pure gold, like transparent glass.” (Revelation 21:21)

But what is the purpose of those resources? Will they be required for basic needs? Or will they be a luxury on top of all of our needs already being provided by the Father and the heavenly system he has created? I believe it will be a luxury because all of our needs will be provided for. The dialogue I have had with many indicates that this isn’t a challenging concept to accept or believe. Most people have never thought about details until I probe, but after some questions, it is clear that they inherently believe that Heaven’s system will be provisional instead of transactional. While the first two questions incite the same answers from most people, the third question is where things diverge. Think about the question for yourself for a moment. In light of your answers to the first two questions, how would it look if Heaven’s economy were to be established on earth today? It doesn’t take long to realize that what we believe Heaven’s system will be like (as answered by the first two questions) violates everything we know and believe about how economies are supposed to function in our world, mainly in the West but worldwide. Many authoritative bodies have spent great effort teaching us (through engineered consent) to label economic ideas as Democratic or Republican, conservative or liberal, fascist or communist. As a result, our minds try to affix the proper label to any new economic idea we hear. But the new lens of these three questions has led me to consider economic ideas in a new way. And I soon realized that it is foolish for us to try to understand the economic system built by the Most High through the lenses of a system built by man.

In the Bible, we find a story in which Joshua, the leader of Israel, is on top of a mountain strategizing the nation’s next battle. A man with a drawn sword appears. Most scholars believe this was the Lord himself. Joshua asks the Lord, “Who are you for? Us or them”? He wanted to know which side the Lord was going to take. The Lord answers, “No, but I am the commander of the army of the LORD. Now have I come.”(Joshua 5:14) Even though it was abundantly clear that the Israelites were the people of the Lord, the Lord made it a point for Joshua to understand that he doesn’t come to take sides, He comes to take over. He is the King of a Kingdom that is supreme over all other kingdoms. So when he comes, he doesn’t come to fix our economy, He comes to replace it. So we must ask ourselves the question of whether we want him to come—of whether we want his Kingdom to come on earth as it is in heaven, even when it comes to economics. As we consider our own hearts, we must realize that his Kingdom may not be well received by many who are accustomed to, or even benefiting from, our current economic system. This shouldn’t be a surprise. “His ways are not our ways, His thoughts are not our thoughts.”32 “Instead, God chose things the world considers foolish in order to shame those who think they are wise. And he chose things that are powerless to shame those who are powerful.”

To gain insight into what the Kingdom’s Economy actually looks like, we have to accept that the Father’s ways could be and more than likely are completely different than ours. I encourage you to have an open, unbiased mind as we explore what the Kingdom of Heaven established on earth could look like economically.

Photo by Marta Bibi on Unsplash

by The Faith Driven Investor Team

Very few things are free in today’s world.

Money and the financial markets have the power to drive change and standards across industries and lifestyles alike. But with such power comes great responsibility.

Positive return on investment alone is not enough for effective and positive developments to occur. Investors must invoke values alongside capital.

Eventide Asset Management, a Boston-based investment firm, believes that faith is essential to the intentional allocation of capital. And the firm is working to promote investing that in their words, “makes the world rejoice.”

Just recently, Eventide Asset Management CEO and co-founder Robin John and manager of investment marketing Shaun Morgan sat down for an interview with the World Economic Forum to discuss the company’s longstanding and Kingdom-focused vision.

“Investors have a huge opportunity and responsibility to lead and be leaders of change,” Robin John said during the 9-minute segment. You can watch the full interview below:

For more than 50 years, the World Economic Forum, also known as the Davos Forum, has served as a global platform where leaders from business, government, international organizations, civil society, and academia come together at the start of each year to address critical issues.

After two years of pandemic-related restrictions, the Davos Forum returned to an in-person meeting format May 22-26. This edition is one of the most critical so far—the world has seen vast changes since last year’s event and society now faces some severe tests.

With the pandemic in the background and the invasion of Ukraine in the foreground, the summit comes at a crucial geopolitical and economic moment. The world faces urgent challenges in humanitarian emergencies, energy, and security, while not losing sight of the long-term commitments to transform, feed and decarbonize the planet.

And yet in the midst of a world in chaos, Eventide is able to share the hope of the Gospel. With God at the heart of everything they do, Robin, Shaun, and other Christ-following investors are compelled to look beyond current circumstances and see an eternity of possibility and promise.

Article originally posted here by GIIN

by GIIN

To achieve a future where impact considerations are integrated into all investment decisions, the GIIN is working with diverse communities to mobilize more capital for impact investing. The faith-based investing community is one of those with whom the GIIN has been deepening ties.

Examples of faith-based investors leading responsible investing initiatives date back centuries, and by expanding into impact investing, these investors have an opportunity to achieve measurable, evidence-backed impact that aligns with the values of these diverse faiths. Given the vast wealth held by faith-based investors, activating their assets toward impact can lead to substantive contributions to global development agendas, such as the UN Sustainable Development Goals (SDGs) and Paris Climate Agreement.

Engaging Faith-Based Investors in Impact Investing outlines key insights from interactions with the faith-based investing community along with proposed engagement strategies that could be assumed by field-building organizations—like the GIIN and others—to support faith-based investors on their impact investing journey.

Read his whole report here on the GIIN website!

Engaging Faith-Based Investors in Impact Investing