All across Washington, DC, and in cities around the world, non-profit organizations operate pursuing their missions. Some non-profits are focused on resolving environmental issues. Some are focused on addressing BIPOC and minority challenges. Others, like the Institute for the Advancement of Food and Nutrition Sciences, are focused on food and nutrition research, education and science.
Many of these non-profits have a reserve fund. This rainy day money aids them in navigating the challenging years when membership and donations are down. Additionally, these reserve funds represent another way that non-profit organizations can support the causes they believe in. These funds can be directed through the organization’s Investment Policy Statement – to ensure the purpose–driven actions of the non-profit organization are realized more fully.
Earlier this year, the Institute for the Advancement of Food and Nutrition Sciences (IAFNS) was launched as a new 501(c)(3)science-focused non-profit organization. As the organization considered its new identity—and how to ensure it could best realize and reinforce its goal of catalyzing science for positive change in the food and beverage ecosystem to advance public health — the Board quickly realized it needed to put its reserve money “where its mouth was.”
This purposeful decision by the Board was taken and now IAFNS investments are geared toward companies that operate with high environmental, social and governance (ESG) standards. Further, the investment portfolio does not include tobacco.(Tobacco companies are not allowed membership in IAFNS due to the clear adverse health impact of smoking.) How could we claim to live our values of scientific integrity, transparency, collaboration and public benefit if we did not reinforce those with our reserve fund investments?
Defining ESG Investment Policies
To drive this change and ensure we are living our values, we started by asking our investment advisers to conduct a confidential survey with our Board Finance Committee. Our Board members, from both the public sector and the private sector, voted and identified the specific criteria IAFNS wanted to avoid and criteria to emphasize in order to have IAFNS’ values reflected in its investments. (A key point of emphasis in the survey is that the values are to be reflected are organizational values not personal ones.)
Next, the Board Finance Committee determined whether direct or indirect exposure to the companies IAFNS wanted to exclude or promote in the portfolio was acceptable. Direct exposure comes from buying individual companies’ securities on the open market, while indirect exposure reflects owning shares of a mutual fund or Exchange Traded Fund (ETF) where a fund manager purchases securities as holdings of the fund.
Working with advisers, the Board Finance Committee determined which types of companies IAFNS wished to avoid or emphasize, along with the type of exposure to those companies that is acceptable. Thus, it was a survey to define criteria, determination of acceptable exposure, and identification of exclusions that allowed IAFNS to establish a Socially Responsible investment plan for our organization.
The value of an investment is no longer only about financial returns. An increasing number of investors are also calling for their money to make a positive impact on society and the world at large. For example, someinvestorsand employees may be passionate aboutpromoting green business and embracing sustainability—others may be passionate about diversity, equity, and inclusion—others may be passionate about animal welfare. It’s natural extension for investors and employeesto ask if the organizations they support have similar commitments to invest according to their values? And, if not, why not?
Working with professional advisers, ESG investing—sometimes called Socially Responsible Investing—is a way to do more good with more money, expanding a non-profit organization’s positive effects beyond the activities of the organization to the entirely of its investment portfolio.
We encourage all other non-profits to review their investment policy. We encourage organizations to work with their Board and reflect on how their investments can additionally reflect their values.
By Wendelyn Jones, PhD,Executive Director of the Institute for the Advancement of Food and Nutrition Sciences (IAFNS)
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
