Our Impact Strategy
We consider impact as a driver of value creation across our investment process.
At S2G, we believe that solving endemic problems across complex markets like agriculture, oceans and energy requires moving away from siloed approaches toward a model that considers the interconnected, global nature of these systems.
We are developing an impact strategy that offers a unified approach to driving positive, long-term impact on important systemic issues. By embedding environmental, social, and governance (ESG) and impact considerations throughout our investment process, we identify opportunities to add value and avoid or mitigate risk to our companies’ impact and financial performance.
For example, our approach may include the following processes and practices.
Our Approach to Impact
Screen for alignment to S2G's impact framework
1.
Pipeline
Development
Analyze potential company's impact profile using impact due diligence questions
2.
Due
Diligence
Articulate company's impact goals and IMM plan, including the reporting schedule
3.
Deal
Closing
Utilize in-house IMM team, resources, and connections to collect and learn from data on company's impact goals
4.
Investment
Oversight
Position company for continued impact in alignment with industry standards
5.
Exit
Note: Decision-making processes and IMM practices may vary
We seek to integrate our IMM practices with industry standards and frameworks.
Guided by industry standards, we are developing processes and practices to collect, synthesize, and interpret ESG and impact data from our portfolio annually to assess contributions toward near-term outcome indicators in each focus area. This involves working with a third-party IMM partner to validate our near-term outcome indicators and verify the indicator data that we report.
We seek to engage in industry-leading membership groups focused on IMM to stay at the forefront of emerging practices, learn from peers, exchange insights, and contribute to the advancement of the impact investing ecosystem at large.
Industry Standards
& Frameworks
Standard Integration
Indicator Integration
Engage in learning and field building through membership in industry-leading associations
NOTE: S2G is not formally a signatory to these standards.
Practice verification: S2G engaged BlueMark to independently verify the alignment of S2G’s impact management system with industry best practices. BlueMark’s assessment findings cover both areas of strength and areas for improvement, as reflected in the Verifier Statement.
Reporting verification: S2G engaged BlueMark to independently assess the completeness and reliability of its external impact reporting based on industry best practices, rooted in market standards and BlueMark’s “Raising the Bar” research initiative. BlueMark’s assessment findings cover both areas of strength and areas for improvement, for the annual reporting period, up to February 2024.
BlueMark is the leading provider of independent impact verification and intelligence for the impact and sustainable investing market.
Organic farm transitions
CLEAR FRONTIER
Clear Frontier is building long-term partnerships that allow farmers to transition to organic farming and scale profitably.
30%
of Clear Frontier farmland is Certified USDA organic or in transition to organic
98%
of the land is farmed by local farming families
Green hydrogen electrolyzers
ELECTRIC HYDROGEN
Electric Hydrogen is developing low-cost green hydrogen systems to decarbonize hard-to-electro-industrial sections like steel.
79 FTEs
New full-time quality jobs created in 2022 in the renewable energy sector
1.9 GWh
Planned manufacturing capacity of 100MW green hydrogen electrolyzers
Sustainable nanobubble systems
MOLEAER
Moleaer's nanobubble generators have benefitted various industries like agriculture and water treatment with oxygenated water
500M+ Gallons/day
Water sustainably treated
2400+
Nanobubble systems deployed
We partner with our portfolio to unlock value through strengthened impact approaches.
We aim to help companies set the foundations of a sound impact approach by creating tools and resources that are adaptable to each company’s strategy. Our frameworks seek to help articulate the impact of a company’s product or service, establish indicators or plans for measuring progress toward that impact, and identify the methods and sources for collecting indicator data.
Through our portfolio engagement, we aim to reinforce the link between IMM and strategy, wherein data is an input to inform and improve critical operational decisions.
Outcomes to Date
S2G contributed these data as input to the broader Builders Vision Impact Report, as of October 17, 2023
