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Kathleen Simpson
TRFF’s “impact investing” journey began in 2004, with a pilot venture into mission-related investing and an exploration into additional advocacy and field-building tools. Since then, we have taken many incremental and iterative steps toward reaching a 100% impact-aligned portfolio. Along the way, we have shared lessons learned, updated policies and practices accordingly, and communicated our journey, practices and investments transparently, including in our Investment Policy Statement at the end of 2023. We also held an open call interview process to bring in new members for our Investment and Audit Committee in early 2022 to encourage diverse and new perspectives. Open calls for board and committee members are not common practice in philanthropy. In 2022, we also initiated our Catalytic Climate Finance Program, when we joined the United Nations-convened Net Zero Asset Owner Alliance and announced our commitment to achieving net zero greenhouse gas emissions as a foundation by 2030.
Achieving a platinum rating through the Intentional Endowments Network’s Endowment Impact Benchmark assessment in 2024 was an inspiring milestone, reflecting the dedication and rigorous efforts we applied throughout our journey. First, we systematically aligned our assets to our mission of investing in people and places to advance environmental sustainability and address the climate crisis. Second, we demonstrated our commitment to climate solutions clearly through our actions. Finally, we committed to doing so transparently , thus inviting accountability into our processes. The EIB has helped us to look critically at the way we work and to sharpen our tools with an evaluation process led by BlueMark, an independent impact verification firm, to ensure that ratings are credible and reflective of best practices.
Transparency and accountability are becoming sustainability buzzwords. Applying these tenets as a foundation, especially with fewer guidelines than exist for other types of organizations, can be tricky. Still, for us, it comes down to defining and staying true to our values. For other similar-sized foundations grappling with transparency and accountability, it is important to commit to a clear set of values, get into the work, evaluate impact and outcomes, revise and continue to learn, improve and share. Our values at TRFF are clear: putting relationships at the center of our work; prioritizing equity, justice and belonging in all that we do; caring for the natural world; being courageous and taking risks while continually learning; and building trust through transparency and integrity.
Committing to transparency is also about being open to discussing challenges. One of the challenges the foundation has faced on the journey toward investing in climate solutions is ensuring we identify scalable solutions and balance risk with impactful outcomes. Sometimes we may have to consider longer-term outcomes; sometimes we may need to reassess or consider a trade-off; and, always, we must stay true to the heart of our mission. Over time, we have found that some of the best ways of tackling these challenges are to leverage our networks, invest in collaborations and prioritize resilience in our strategies.
For example, earlier this year, we convened other like-minded foundations to discuss the role of philanthropies in the fight against climate change and to share insights. There is ample opportunity for foundations to embrace their role here more fully, setting an example for other sectors to follow and working toward a sustainable and just future for all. Regarding our investment approach, we work closely with our investment adviser, AlTi Tiedemann Global, using five strategic tools to guide our investments. These help us target and address various aspects of the climate crisis through our organizational activities and investment portfolio. Collaborations and partnerships with other foundations, AlTi and networks like IEN enhance our strategies, offer shared insights and diverse perspectives, and support us in navigating complex investment landscapes— all key to elevating this vital work.
Participating in the EIB assessment allowed us to engage with a benchmarking framework that helped us analyze how we are progressing along our journey toward sustainable investing. Having a third party review our practices and compare us to peers has revealed areas of strength and, most importantly, areas for improvement, holding us accountable to our goals as we move forward and improving how we present our work. I would urge other foundations who have yet to engage with the EIB to reach out to the team at IEN and look at ways they can participate too. It is an important step to support genuinely impactful investing in the philanthropic community.
Finally, I encourage other leaders to use their influence to empower climate solutions. At TRFF, we believe strongly that foundations are meant to be catalytic. To lead by example, we need to invest in being an example and talking about it openly.
Kathleen Simpson is the CEO of The Russell Family Foundation, where she collaborates with the board to guide the foundation’s strategic planning, programs and community affairs and oversees the Foundation’s impact investing.
This feature is to provide general information only, does not constitute legal or tax advice, and cannot be used or substituted for legal or tax advice. Any opinions of the author do not necessarily reflect the stance of ISS STOXX or its affiliates.
Tags: BlueMark, climate finance, Endowment Impact Benchmark, Foundations, Intentional Endowments Network, Kathleen Simpson, Net Zero Asset Owners’ Alliance, The Russell Family Foundation