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    Briefing Note: Addressing Capital's Effects on Racial Justice

    Over the next few months, Transform Finance is releasing a series of Discussion Briefings, “Addressing Capital’s Effects on Racial Justice,” which present an approach to action across all holdings for investors concerned with racial justice. The first Discussion Briefing, “How investments drive injustice and what investors can do about it” introduces readers to our approach.

    The Briefing

    • Makes the case for the need to go beyond current investors approaches

    • Highlights the importance of centering the work of racial justice leaders

    • Provides a framework that focuses on documented disparate outcomes on communities of color

    • Presents a path for investor analysis, further discussed in upcoming briefings, based on:

      • Establishment of the right questions: what are the negative disparate impacts of economic activity on communities of color, and how is capital implicated?

      • Evaluation of materiality: which impacts are most relevant and have the clearest link to investor action?

      • Development of the analysis by sector and asset class: how do those disparate impacts show up in different areas of a portfolio?

      • Activation of investors by type and by exposure: how can a family office or a pension fund take action, and what actions are most conducive to change in each asset class?

     
     

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