NEW YORK, Sept. 12, 2018 /PRNewswire/ -- Cornerstone Capital Group, a registered investment advisor that pursues financial returns alongside social impact by incorporating environmental, social and governance (ESG) analysis into portfolio design, today announced the release of a new research report, "Investing to Advance Racial Equity." The report analyzes how wealth inequality in the United States has resulted from structural racism dating back to the beginning of the republic – and provides solutions for addressing economic inequality through targeted investments.
The report assesses how investors can contribute to solutions for three of the main current components of wealth inequality: income inequality, home ownership and affordable housing, and access to capital. Investors cannot, on their own, undo centuries of inequalities caused by structural racism, but they can help build a fairer and more just economy.
"As experts in impact investing, we have written this report as an attempt to provide tangible and practical options for those who wish to use their capital to help mitigate the ongoing effects of racial injustice in the United States," said John Wilson, Head of Research and Corporate Governance at Cornerstone Capital Group. "If the current income and wealth gaps remain static, the overall pool of investment capital for entrepreneurship and home equity will be concentrated in fewer hands and sectors of the economy, which could cause social instability and major headwinds for future US economic growth."
In the report, Cornerstone Capital Group evaluated how investments can help break the cycle of racial and ethnic wealth inequality. A few possible solutions include:
Investing in deposits at Community Development Financial Institutions (CDFIs) will help those institutions invest in underserved communities through affordable commercial, consumer, and mortgage loans.
Fixed income or alternative funds focused on impact in underserved communities can provide reasonably priced loans for businesses or commercial properties in neighborhoods of color
Through crowdfunding, investors can help repair household balance sheets of overleveraged individuals by swapping high-cost consumer, educational or mortgage loans for restructured, affordable, lower-cost loans.
Cornerstone Capital Group is a financial services firm based in New York. The firm's mission is to optimize financial performance and social impact through rigorous research and the systematic integration of Environmental, Social and Governance (ESG) factors into portfolio design. In offering investment advisory and strategic consulting services, Cornerstone works with asset owners, corporations and financial institutions, promoting new research in the field of ESG analysis, and facilitating capital introductions for organizations around the world engaged in sustainable business practices. More information is available at https://cornerstonecapinc.com/