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Metrics & Standards

Our commitment is to support the leading sustainability and responsible investor standards, to provide our stakeholders, including our team, our community, our partners, and our investors the visibility to calibrate our performance.  Further, we are committed to being part of the solution, including contributing to the development and vetting of standards and staffing of standards working teams.

BENEFIT COMPANY (LEGAL)

Equilibrium Capital Management, Inc. is a Benefit Company under Oregon’s law, and has been since the first day it was possible, January 2, 2014 (Press release). 

REPORTS:

2016 Equilibrium Benefit Report
2015 Equilibrium Benefit Report
2014 Equilibrium Benefit Report

A benefit corporation (or limited liability company) is one that accepts statutory responsibility to create general public benefit, and to consider its impact on its shareholders, employees, suppliers and customers, communities, society and the environment through its business, operations and decision-making processes. Benefit Corporation is a term used interchangeably with Benefit Company.

CERTIFIED B CORPORATIONS (B CORPS)

 Equilibrium Capital Group, LLC has been a certified B-Corp since August, 2009.

See: Equilibrium’s B Impact Score

A certification program managed by the non-profit B Lab to rate for-profit companies who voluntarily meet higher standards of social and environmental performance, accountability, and transparency in redefining the success of their business and their ability to translate those ideas into actions.

GIIRS (GLOBAL IMPACT INVESTING RATING SYSTEM)

Equilibrium Capital Group, LLC has been rated under GIIRS since 2009.

A third-party standard for impact measurement in impacting investing through comprehensive and comparable ratings of a company or fund’s social and environmental impact. The ratings are derived from the B Impact Assessment, the largest data benchmark available in B Analytics. The GIIRS standard meets legal requirements for Benefit Company rating systems. It focuses on employment, community, and environmental practices in the running of a business, and not on its financial success or the underlying impact of its products per se, so it is a partial measure. B-Labs manages the GiiRS scores, and uses its scores for its B-Corp certification programs.

The highest achievable B Impact score is 200 points. Most companies score between 40-100 points with an average B Impact Score of 80. Only companies with a rating higher than average (80) can be Certified Benefit Corporations.

The top 10% of small business certified B-Corporations have an average score of 134. The average certified B-Corporation small business score is 95.

Typical B Impact Scores
Equilibrium’s B Impact Certification Scores

UNPRI (UNITED NATIONS PRINCIPLES FOR RESPONSIBLE INVESTMENT)

Equilibrium Capital Group, LLC became a UNPRI signatory in 2015.

UNPRI is a set of principles supported by major international investment firms, who have recognized that effective research, analysis and evaluation of environmental, social and governance (ESG) issues are a fundamental part of assessing value and performance of an investment. The principles reinforce the judgment that ESG analysis should inform asset allocation, stock selections, portfolio construction, shareholder engagement and voting.

Six principles of UNPRI:

  1. Incorporate ESG issues into investment analysis and decision-making processes.
  2. Be active owners and incorporate ESG issues into our ownership policies and practices.
  3. Seek appropriate disclosure on ESG issues by the entities in which we invest.
  4. Promote acceptance and implementation of the principles within the investment industry.
  5. Work together to enhance effectiveness in implementing the principles.
  6. Report on activities and progress towards implementing the principles.

SASB (SUSTAINABLE ACCOUNTING STANDARDS BOARD)

Equilibrium staff members were selected to participate in the first demo of the certification program with the newly written SASB Certificate Test-Part I. Our staff members both passed and have been asked to return to demo the pilot of SASB Certificate Test-Part II.

SASB’s mission is to develop and disseminate sustainability accounting standards that help public corporations disclose material and decision-useful information to investors through rigorous evidence-based research and broad, balanced stakeholder participation. The certification program is new as of 2015 and requires passing a two-part test. We are engaged with the development of this standard.

ADDITIONAL STANDARDS

Equilibrium was a member of the global committee to develop the G8 (later G20) set of recommendation for Impact Investing see report.  Equilibrium was also on the US NAB (national advisory board) to develop the US recommendations that fed into the G8 recommendations see report.  Equilibrium, as part of the US NAB to the G8, was part of the briefing program to help the US Department of Labor develop their 2015 clarification on ERISA and ESG.

Equilibrium has been a contributor to numerous sustainable finance responsible investments and impact investment industry reports including WEF, Credit Suisse, Cambridge Associates, McKinsey, etc.  Additionally, Equilibrium has been invited to briefing at the White House on environmental finance and briefings to US Federal Agency leadership on the implications of markets for agency objectives and regulations.

CERES

Equilibrium has been, in the past, a Ceres Coalition member and is not currently active.

A non-profit advocate for sustainability leadership, mobilizing powerful networks of investors, companies and public interest groups to accelerate and expand the adoption of sustainable business practices and solutions to build a healthy global economy. Ceres Coalition members engage with corporations and help advance the goals of building and strengthening global sustainability.

EQUILIBRIUM’S PLATFORM METRICS

In addition to adhering to these standards and systems, Equilibrium tracks metrics specific to its own business.

  1. All figures include affiliate numbers where available or can estimated. (Affiliates are companies in which Equilibrium holds an investment interest, such as Gerding Edlen Development, Australia Pastoral Funds Management, Revolution Energy Solutions, EnergyRM, and BioLogical Capital).
  2. Hourly translated to FTE per hours data base time period, as 40 hours in 1 week payroll = 1 FTE; 500 hours in cal. Quarter = 1 FTE, 1,000 hours in cal half = 1 FTE, 2,000 hours in year = 1 FTE
  3. Water saved: data in this period limited to Oregon farm operations. Estimated based on current widely used alternative.
  4. Energy saved/generated: data under development.
  5. AUM includes affiliate-managed committed AUM. Directly managed AUM this period at $350M.

Each Equilibrium strategy sector and fund also develops their own unique metrics.