Insight: Albert Kittell ’20

EDITOR’S NOTE: As part of Orientation Week, the Class of 2020 visited iconic, mission-driven companies here in Vermont for conversations about sustainability, innovation, and Business 2.0 with executives. We asked Albert Kittell ’20 about his take-away from a visit to Ben & Jerry’s headquarters.

Albert Kittell ’20

“After visiting Ben & Jerry’s South Burlington offices it became very clear to me, a native Burlingtonian, that the scope of the company’s influence was much greater than I realized. Ben & Jerry’s, since middle of the 1980s, have put in place innovative and lasting initiatives that often were the first, or among the first, in the world.  These included “Shared Prosperity,” social, and economic equality, and environmental issues. If an ice cream company can do all of that, then any business headed by similar type thinkers can help strike change in industry.”

A Very Special “Innovator-in-Residence:” Stuart Hart

This post was written by Esteban Echeverria ’19

It is May 8 — the last day of classes, and just like every three weeks or so, we have a speaker come to our class and talk to us for the whole morning. This time it is the one and only Professor Stuart Hart, and by now we should know him and his teachings pretty well.

Professor Stu Hart

For the ones who do not know, Dr. Hart is the backbone of The Sustainable Innovation MBA program. His research, in conjunction with other experts in the field, such as C.K. Prahalad, and Dean Sanjay Sharma, provide much of the material we study in our classes.

As we know Dr. Hart quite well by now, he decided to base his lecture on where we are now as a society, and where we are headed in the future, as well as some of his current research. After some 500 years of history, he explained the many phases of the most important economic systems the world has been going through— feudalism, mercantilism, industrial capitalism, institutional capitalism, financial capitalism. He finally mentioned the next phase that we are transitioning to— what he called the new sustainable capitalism. Each of phases have been going through a cycle of power and economic distribution that repeats itself, were we keep making the same mistakes, falling on the same bumps, and ending up in the same place, which is not exactly a good one.

We are now in a moment in history haunted by a severe climate crisis, as well as a social one, where inequality is hitting major milestones that are getting close to the point of no return. It is a point where the Milton Freedman’s “increase of shareholder value” corporate objectives, as well as the concept of tying the payment of chief executives and senior leaders to performance, are to be reviewed and thought over. 

It not only has led to multinational corporations practicing stock buyback and cut R&D spending as well as operational spending including employee pay, among other strategies to raise the prices of their own stocks, but also focus on quarterly earnings reports and quick fixes to their unsustainable models. The pressure of investors, analysts, and high frequency traders has let these companies forget about the long-term strategies required to sustain their operations, as well as promote the wellbeing of their stakeholders. Shareholder primacy, as noted in the past, is not a legal obligation, but the system as of now is fixed for this purpose. 

One of the objectives of The Sustainable Innovation MBA program is to create the new generation of businessmen and businesswomen determined to go about their decision making process taking not only financial, but also environmental and social aspects into account. As a student of this program, and part of this community, I would also like to act as a sustainability enabler, by attempting to contribute to corporate transformation from the inside out. Many of these public multinational corporations need to recognize their identity, strengths, and reason of existence, and use it as a tool to transform and modernize their operations and value propositions to ones that contribute to the wellbeing of the environment and society. By doing so, they secure their long term operations for the future.

Now that we have finished the lecture portion of this program, I am a step closer to become part of The Sustainable Innovation MBA alumni community, the one that is building the business leaders that the world needs. I recommend this experience to anyone that is trying to make an impact, and be part of the transformation we are going through.

Reflections on Winning The Total Impact Portfolio Challenge

This post was written by Alyssa Stankiewicz ’19, and co-written by Andrew Mallory ’19

EDITOR’S NOTE: A team of five students from The Sustainable Innovation MBA program recently took first place in the Wharton-sponsored Total Impact Portfolio Challenge, beating a field of finalists from Yale, Columbia, Fordham, and Boston University. Read more here.

When I came to this program in August 2018, I had never even heard the term “impact investing.” I planned to focus my learnings on innovations in social justice and sustainable agriculture. I dreamed of founding a self-sustaining weaving center that provided support and reflection to folks through art therapy. While this is still an eventual dream of mine (stay tuned!), I realized that what really motivated me about this dream was the opportunity to help people.

The mission of The Sustainable Innovation MBA program is using business as a force for good in the world, also described as “doing well by doing good.”  Through the mentorship and encouragement I received from Dr. Chuck Schnitzlein, I began to realize that not only does the world of Finance provide this same opportunity, but I possess a natural knack for the work involved. He presented us with two extracurricular opportunities to test and demonstrate our skills and studies. The first project revolved around developing an impact strategy for the UVM Endowment (for more on that, see this article), and the second was a Wharton-sponsored impact investing competition called the Total Impact Portfolio Challenge.

The competition was stacked, to say the least. 26 teams from 19 business schools including Yale, Columbia, Booth (Chicago), and Wharton (Penn) entered the competition, and with this being just the 5th cohort of our Sustainable Innovation MBA program, our team was ecstatic to find out in March that we’d been selected as Finalists. We had spent months taking extra classes with Dr. Schnitzlein in Portfolio Management and Evaluation, researching the companies who achieved “best in class” accolades, and developing our investment philosophy and strategy in our copious free time (“copious” might be an exaggeration). When they announced we won at the live competition in Philadelphia on May 1, we were completely over the moon.

We like to think that we had a competitive advantage because each of our professors integrates sustainability holistically into every single course. We learned about Entrepreneurial Business Design, Systems Thinking, and Cost Models from a sustainability perspective, so we were more fully prepared to incorporate sustainability into every piece of our portfolio.

The Total Impact Portfolio Challenge provided us with two fictitious investor profiles from which to choose, and our team selected a Family Office who wanted to achieve multi-generational wealth and sustainable impact in line with five themes, which we matched to the UN Sustainable Development Goals (SDGs). Our team took a unique and bold approach: we successfully invested the entire portfolio in companies and funds that are going beyond minimizing the bad; instead, each of our investments contributes to developing solutions for the greater good. We highlighted the innovations of Mary Powell at Green Mountain Power and the Reinvestment Fund’s success in the City Mission Project. We developed methods for measuring impact and adapted our findings to the unique characteristics of the various asset classes. Peter Seltzer even coined the SI-MBA Score, which goes beyond traditional ESG scoring systems to incorporate materiality. This is because, as we learned in our Strategic Corporate Social Responsibility course (and which was affirmed in this study written by Khan, Serafeim, & Yoon), companies that focus on the sustainability issues that are most material to their business actually see improved financial performance over the long term.

Where do we go from here?

I personally want to find ways to help accredited and non-accredited investors deploy their finances in ways that are more meaningful to them. I have a passion for efforts to democratize investment opportunities, and I’m working on an idea that incorporates my Linguistics background with my Finance interests to create a more effective system for financial literacy education. I look forward to exploring opportunities in place-based investing and community funding models as avenues to strengthen the resilience of local economies. Find me on LinkedIn!

Photo credit: Chris Kendig

Emily came to The Sustainable Innovation MBA program passionate about opening up venture capital investment to women and other underrepresented founders. Through projects studying everything from community capital initiatives to equity crowdfunding policy to this challenge on integrating materiality into ESG scores, she sees increasing opportunities to promote a more sustainable form of capitalism for investors and entrepreneurs. After the program, she is seeking a career in impact investing and hopes her involvement can promote responsible investment opportunities in the industry.

For Andrew, this challenge was a perfect blend of his two professional passions: finance and sustainability. Coming from a traditional finance background, he sees how important it is for impact investing and ESG integration to continue to evolve and grow, and he is encouraged by how many financial institutions are now incorporating ESG into their strategies. After graduation, Andrew is interested in pursuing public and private equity research, specifically analyzing companies who are embedding sustainability initiatives into their core operations to see how impact alpha can mitigate risk and provide long-term growth.

 Peter came to the program as a CPA with ten years of experience. Throughout his career, he has gravitated towards opportunities to support social causes, including serving on the boards of two non-profits and working for three years at The Food Trust, a Philadelphia based non-profit. While here, he discovered a passion for the Sustainable Accounting Standards Board (SASB) and began a certificate program in the fundamentals of sustainable accounting. The group utilized his research in developing the SI-MBA Score, which was a differentiating factor in our presentation. After graduation, he is pursuing opportunities where he can incorporate his SASB knowledge to help investors generate greater impact with their investments.

Maura, coming from the client services and business development side of the investment industry, saw the demand for responsible investment solutions from young investors and European clients. She hopes to use the skills developed during her SI-MBA experience and her involvement in the Total Impact Portfolio Challenge to re-enter the field and meet the needs and wants of the industry demand. Planting roots in Vermont, she looks forward to growing the responsible investing industry presence in the state.

We had great support from all of our classmates, but special acknowledgement (in no particular order) goes out to Andrew Oliveri, Alyssa Schuetz, Ryan Forman, Elissa Eggers, Caitlyn Kenney, Esteban Echeverría Fernández, Alexa Steiner, Emily Foster, Jeffrey Lue, Matt Iacobucci, and Keil Corey. In the spirit of The Sustainable Innovation MBA, this was truly a collaborative effort, and I believe that’s what ultimately gave us the competitive advantage. I’m personally looking forward to seeing where we go from here, and I wish good luck to next year’s cohort!

For other publications on this challenge and our approach, please see the initial post in the SI-MBA Review, as well as articles in CNBC, UVM, Poets & Quants, Forbes, and the Wharton Social Impact Initiative.

Renewed — and Renewable — Hope

This post was written by Noelle Nyirenda ’19

Row upon row of solar panels reflect the Zambian sky while they silently and cleanly produce enough electricity to power over fifty thousand homes. Walking the solar plant that covers almost 50 hectares in the special economic zone outside the capital city, I am exhausted but filled with hope. Renewable energy is no longer a niche technology that “serious” business people don’t even consider but the preferred source of electrical energy for most countries.

I am at the Bangweulu Solar plant where I have been contracted as the commissioning engineer to ensure that the project can be handed over to the client and be ready to be brought online at an inauguration ceremony that will be attended by the president, US ambassador and other dignitaries.

This is grueling work, and the timeline is stressful, I only had four hours of sleep after flying in from Vermont before I had to be onsite for a planning meeting and hit the ground running. However, I know that this project marks a significant time for me and the company I am working worth. This project is about more than handing over yet another installation successfully to our client, it’s about capacity building and developing skills to make Zambia’s energy infrastructure more sustainable. The Bangweulu project was made possible by a financing structure that brought development partners and private business together.

This belief in the idea that value can be created at the confluence of social development and business enterprise is what brought me to The Sustainable Innovation MBA program at UVM.

Breaking News: Sustainable Innovation MBA Team Wins Wharton’s Total Impact Portfolio Challenge

A team of Sustainable Innovation MBA students has emerged from an elite group of finalists as the winners of the Total Impact Portfolio Challenge, sponsored by the Wharton School of Business at the University of Pennsylvania. The team was comprised of Class of 2019 students Alyssa Stankiewicz, Pete Seltzer, Emily Klein, Maura Kalil, and Andrew Mallory. Their faculty advisor and coach was Prof. Chuck Schnitzlein.

More: Read CNBC’s coverage of the Challenge, featuring our team

The Total Impact Portfolio Challenge involved creating and analyzing a portfolio that met risk, return and ESG (Environmental, Social, and Governance) impact investing objectives. The team presented their work in Philadelphia on May 1 and 2.

The other finalists in the competition included Yale, Columbia, Fordham, and Boston University. Our group was named one of the “Final Five” back in late-March from an strong field of 25 teams that included entrants from the University of Chicago, Cornell, Georgetown, NYU, Wharton, MIT, and Northwestern.

This is a significant accomplishment, and an important milestone in the history of The Sustainable Innovation MBA program.

Beginning third from left, Emily Klein, Alyssa Stankewicz, Andrew Mallory, Maura Kalil, and Peter Setzer.

Value for All!

This post was written by Elissa Eggers ’19

A few weeks ago, during our Driving Sustainable Change course, my classmates and I were fortunate enough to chat with Andy Ruben, co-founder and CEO of Yerdle. Yerdle is a “circular economy powerhouse” driving change in the recommerce market by partnering with brands in a way that benefits consumers, companies, and the planet. For someone who came into this program looking to gain new skill sets and tools that would support me in my quest to change the fashion and retail industry for the better, it was exciting to have the opportunity to hear first-hand how Yerdle is disrupting the retail landscape.

Currently, the fashion industry produces upwards of 100 billion pieces of clothing per year despite there being just under 8 million people on the planet. On average, we consume 400x more clothing than we did 20 years ago. Clearly, we have a consumption problem. However, we also have a lack of use problem. As Andy highlighted in our conversation, a large portion of perfectly wearable clothing in the world today sits unused in people’s drawers and closets. That doesn’t even take into account the 10.5 million tons of clothes tossed into landfills each year in the United States alone when people decide it is finally time to purge. So how do we address the growing mountains of clothing taking over the planet? Extending the life of our clothing by keeping pieces in circulation longer is definitely a key piece to this puzzle.

Now, keeping clothing in use by passing it along is by no means a novel idea. Passing along hand-me-downs and buying from and selling to thrift stores are examples of ways people have long been extending the life of their clothing.  However, if we are truly to stop the current systems of production, consumption, and disposal that currently define the retail landscape and result in wasted resources, then we need to innovate and expand on our current re-sale systems.

Yerdle is doing just that. By partnering with brands to help them take control of their resale market and extract value from it in the form of profits and customer acquisition, Yerdle ensures that all stakeholders (including the brands) benefit. A key theme woven throughout our coursework in this program is the importance of expanding the pie. In other words, for a solution to be truly sustainable and innovative, it cannot simply redistribute the value created to different groupings of stakeholders. Rather, it needs to expand the pie to increase the value captured by all.

Understandably, finding a solution that truly expands the pie is easier said than done which is why listening to Andy was such a valuable experience. Ultimately, by making retail companies part of their solution and beneficiaries of it, Yerdle has created a solution that other brands would want to be part of because the expanded value created extends to them. This makes integrating recommence into their businesses seem like the smarter, more profitable option.

One of my biggest takeaways from the conversation is that as my cohort and I move out into the world and start trying to tackle these big issues, we need to remember the importance of crafting solutions that reduce friction and do not force people to make trade-offs. The fact is, we are all passionate about different things and not everyone is going to care about or be willing and able to sacrifice something for the sake of sustainability. Nor should they necessarily be expected to. Thus, building a solution that requires stakeholders (businesses or consumers) to make a sacrifice of something they value in order embrace the greener option, is simply not a realistic and scalable alternative. Instead, businesses, particularly those in retail, need to embrace and develop strategies that make things easier and better for all. Yerdle is one example of a company doing just that.

Photo by Artificial Photography on Unsplash

How to Decrease the Single-Use Plastics in Your Life

This post was written by Shea Mahoney ’19

With so much focus throughout The Sustainable Innovation MBA curriculum on the complex, pressing sustainability challenges across the globe it can start to feel claustrophobic and overwhelming to think about how to address these issues from as individual in terms of personal consumer behaviors. One place I have been trying to minimize my own ecological impact is by reducing my consumption of single-use and disposable consumer plastics products wherever I can. These attempts have made it clearer than ever how hard it is to break up with plastic, it is so ubiquitous in most of the products we all use on a daily basis. Fortunately this is an issue gaining traction, highlighted by Burlington’s recent vote on Town Hall Meeting Day to ban single-use-plastic bags, and with higher scrutiny towards how prevalent these products are in our lives there is a broadening new market for more sustainable substitutes to help tamper plastic use.

By looking at the plastic products I use most frequently I have been able to identify some good alternative products to replace those, allowing me to reduce my reliance on them. One source of plastic waste that might not immediately jump to front of mind is plastic toothbrushes, but with their daily use they tend to be replaced fairly regularly and over one’s lifetime toothbrushes can account for a significant amount of plastic waste. Many companies have sought to offer a more sustainable option, with biodegradable bamboo toothbrushes being a common alternative. Bamboo is a very low agriculturally intensive crop, requiring relatively little land surface area for cultivation and no fertilizer use. However, not all bamboo is created equal and with the rising popularity of the crop for myriad uses it can take a bit of digging to verify whether or not a bamboo toothbrush (or any product made with the eco-fiber) is actually sustainably grown or rather being greenwashed as a more eco-friendly option.

Another area of single-use plastics that can be reduced through investing in more eco-friendly substitutes is produce bags. While it has become pretty common practice for many to bring reusable grocery bags to the store, many of us still rely on plastic produce bags for packaging our perishable fruits and vegetables. However, there are many alternative, reusable mesh bags that can be easily used to replace the flimsy plastic ones so ubiquitous in grocery stores. These also make for a relatively simple addition to any already ingrained reusable bag habits. While the need for more substantive, paradigmatic shift in the way we as a society views the use and disposal of plastics remains a daunting and pressing concern, there are many ways at the individual level to curb your consumption and make small but meaningful changes. Investing your dollar votes in sustainable products that provide longer term solutions instead of reaching for single use plastics when convenient is one way we can all contribute to the larger, collective groundswell of change.

Sources:

https://goodonyou.eco/bamboo-fabric-sustainable/ https://www.wcax.com/content/news/Move-to-ban-single-use-plastic-bags-gaining-momentum-5 06765721.html

Photo by Patricia Valério on Unsplash

Single-Use Plastic: Why Recycling is Not Enough

This post was written by Meg Nadeau ’19

During a recent Driving Sustainable Change class, we implemented the methods of Design Thinking to try to answer the difficult question, “How might we reduce the consumption of single-use products at UVM?”

This is a question I have tried to answer for myself on many occasions: How can I change my behavior so that I can reduce my consumption of single-use products? By single-use products I mean any product designed specifically to be used once, then discarded, simply to be replaced by another single-use product.

I used to believe that as long as I recycled the plastic I was using, I was doing my part. However, I have realized that recycling is not enough. There is a reason why the phrase goes reduce, reuse, and recycle. Reducing and reusing come before recycling because that is how to make the most positive impact.

Recycling is better than not recycling, don’t get me wrong, but the current recycling process has many inefficiencies. First, containers must be clean of contaminants. In a full bin of recycling, items that are not recyclable — contamination — weaken the marketability of that material, and those items wind up in a landfill anyway. If the plastic does end up going to a recycling facility, it takes large amounts of energy and resources to transform it into a product that can be used again. Monitoring and collection, transportation, and the recycling manufacturing process itself all contribute to this energy and resource consumption.

The molecular makeup of plastics makes it very difficult for it to be broken down and transformed back to its original product, like a water bottle being turned back into a water bottle. Instead, recycled plastic is usually used for secondary reprocessing which turns the recycled plastic into a plastic product that cannot be recycled. This repurposing of plastic is better than just throwing it in landfills, but its footprint should not be minimized. There must also be demand for the recycled material for this process to really be effective. Many recycling programs are operating at a cash loss on a regular basis, which is not sustainable for the long-term.

So, what is the solution to this? Recycling used to be seen as the solution for all of our waste. But, that is just not enough if we plan on saving the planet. The real solution is to not create the need to recycle in the first place. Reduce your consumption of single-use plastics, or better yet, don’t use single-use plastic at all. Nobody is perfect, so if you do buy plastic try to reuse the item as many times as you can. Get creative with it! How many new uses can you get out of a plastic product? But, since the goal of this post is to reduce the consumption of single-use products, I am going to leave you with some tips that have helped me.

  1. The Grocery Store: Single-use products are everywhere here, from lettuce wrapped in plastic, to eggs in plastic casings, to meat packed in plastic bags. Become mindful of your purchases at the grocery store. Start your grocery shopping the right way by remembering to bring your own shopping bags- this will set you up for a successful grocery shopping trip right from the start! Put your produce in these reusable bags instead of putting them into the small plastic produce bags and try to buy produce that is not already wrapped in plastic. Choose cardboard over plastic whenever possible. Cardboard is generally easier to recycle and tends to biodegrade more easily. So go for the eggs in the cardboard casing, or the pasta in a box instead of in a bag, or detergent in a box instead of a bottle.
  2. The Bathroom: Look in your shower and count how many plastic containers are in there. Is there a way you can change your purchasing behavior to find products that don’t come in plastic? Can you refill glass containers with shampoo, conditioner, and body wash? There are companies, like Lush, that are selling solid shampoos and body washes that do not have to be contained in a bottle at all. Instead of buying disposable razors, try switching to a razor that lets you replace the blade or, even better, get a straight razor. Instead of shaving cream, try coconut oil. And if you really want to commit to a sustainable shaving experience, don’t shave at all! There are many alternatives to your plastic toothbrush, as well. Try going with a wooden toothbrush, one that you can just throw in the fire when it is time to get a new one. While we are on the topic of teeth, have you ever tried tooth powder? You can make your own at home with baking powder, salt, and essential oils for flavoring. You can also buy pre-made tooth powder from brands like Uncle Harry or Aquarian Bath.
  3. The Kitchen: Plastic has inundated our kitchens in the form of plastic baggies, plastic wrap, and plastic storage containers. Instead of using plastic wrap, use jars or glass containers. There are also some innovative companies, like Bee’s Wrap, that are coming out with reusable food storage solutions. Instead of plastic baggies or plastic containers, why not use a glass or stainless steel bento box? If you’re feeling extra brave, bring these out with you when you know there will be leftovers. Instead of relying on a restaurant to provide you with a single-use container to-go, complete with a plastic bag, opt to put the food in your own container that can be reused over and over again. Try switching to wash cloths instead of paper towels. Paper towels come wrapped in plastic and can only be used to clean up one mess. Wash cloths can be used over and over again and just get thrown in with the rest of the dirty laundry when they need to be washed.

Net Impact: Wear-it-Wise Fashion, but Make it Sustainable

This post was written by Alyssa Schuetz ’19

I may only be 23 years old, but I know exactly what I want to do with my life. I want to change the fashion industry for the better. My bachelor’s degree is in Design & Merchandising which translates loosely into the business-side of the fashion industry. After working in product development in sports apparel, I saw the shortcomings of retail and knew that I couldn’t enter the industry knowing that I would be part of the problem. I am determined to be part of the solution and create a positive impact on the industry.

When I joined The Sustainable Innovation MBA program, I knew my direction was always going to be about fashion.

I just wasn’t sure which form that would take until I came across the non-profit organization Net Impact. Turns out, they have a specific program dedicated to promoting sustainable fashion called Wear it Wise. I immediately reached out to the program because I knew I had to be involved.

As a grad student, I knew this would be a huge opportunity for me to share what I am passionate about on a larger platform. This program is sponsored by Levi’s, Colombia Sportswear Company, and Eileen Fischer. Knowing that these brands are innovators and already making a difference in the sustainability space, I knew that this platform would provide me with more skills and tools to further a cause that I was already passionate about.

After being accepted into the Wear It Wise program, I started crafting my social media campaign to give people an inside look as to how they can shop more sustainably. My goal throughout this campaign has been to empower the consumer. In my experience, the fashion industry is at a crossroads where the industry is aware of sustainability and knows that it will eventually have to become greener, but it’s still lacking that final push to implement change. I believe that we as consumers carry immense power to vote with our dollar with every purchase we make. We have the power to be this push that retailers need in order to convert to more sustainable practices.

I’m excited with the power we have to wear our values and make our impact in the retail industry. Please follow along my journey on social media as I continue to share my passion with all of you and inspire you to make your own impact!

Impact Investing for a Greener UVM

This post was written by Peter Seltzer ’19, Andrew Oliveri ’19, Maura Kalil ’19, and Matt Iacobucci ’19

At the beginning of the academic year, Finance professor Dr. Chuck Schnitzlein introduced an opportunity for us all to spearhead the first Sustainable Innovation MBA impact investing project. The goal of the project was to show the University of Vermont Treasurer’s office how to build a short-duration fixed income impact portfolio that meets its fiduciary and financial constraints.

Given these parameters, our challenge was to build a portfolio comprised of socially and environmentally responsible fixed-income investments that would contribute to making a positive global impact in the areas of our choosing. A group of thirteen Sustainable Innovation MBA students* have been working collaboratively to come up with investment criteria to build out this potential portfolio of bonds for consideration. Through working closely with Chuck, the Sustainable and Responsible Investing Advisory Council (SRIAC), and the UVM Treasurer’s Office, we are now positioned to make our recommendations to the investment manager to implement this strategy.

*Andrew Mallory, Andrew Oliveri, Alyssa Schuetz, Alyssa Stankiewicz, Esteban Echeverria-Fernandez, Emily Klein, Keil Corey, Maura Kalil, Matt Iacobucci, Noelle Nyirenda, Peter Seltzer, Ryan Forman, Tor Dworshak (in no particular order — EDITOR)

Coming into The Sustainable Innovation MBA program, many of us were novices to the emerging field of impact investing. To build our knowledge and immerse ourselves in this new subject, we began organizing and attending weekly learning sessions. Our resources have included articles and research tools, but most significantly, the book The Impact Investor by Jed Emerson, a prominent leader in this field. These resources provided the foundation for our impact investing toolkit that has aided us in determining our impact objectives and screening criteria for the project. Next, we had to learn the tools that investors use to search for and make judgments on assets in real-time.

We trained ourselves to use the Bloomberg terminal, a powerful tool for investors in providing access to real-time financial data. Each member of the impact investing team completed the built-in Bloomberg Market Concepts digital learning tutorial, with particular attention focused on fixed income securities to build out our general investing toolkit. While identifying whether each bond under consideration held the financial metrics needed to fulfill the fiduciary obligations required of the portfolio for the University, we also used the ESG terminal function to help objectively measure the non-financial impact that each bond holds. The ESG function provides non-financial Environmental, Social, and Governance metrics for companies and bonds, which proved to be an invaluable tool for our research process.

While the whole impact investing team was expected to have a solid understanding the “impact” side of the equation, a subgroup of the team has been taking additional advanced finance classes with Chuck on fixed income investing and portfolio management to master the “investing” side. There, this subgroup has been learning key concepts to help the whole team take the next steps towards building a portfolio that is financially sound and well up to the University’s investing standards. This diversification within our team allows for an overall focus on portfolio impact, while the more specialized subgroup could also incorporate the principles of a financially successful portfolio that was consistent with the investment policy statement and integrated impacted criteria.

During our early coursework in The Sustainable Innovation MBA, we learned how many companies have been aligning their business models and sustainability initiatives with the United Nations’ Sustainable Development Goals (SDG). Thus, we wanted to incorporate the concept of impact learned through the program’s curriculum to maximize our portfolio’s impact. As a group, we brainstormed SDGs that were not only important to us but those in which we saw the most potential for global impact. From that list, we selected three SDGs that we determined were best aligned with UVM’s mission and brand image: Clean Water & Sanitation, Affordable & Clean Energy, and Gender Equality.

The first SDG we focused on was ensuring the availability and sustainable management of water and sanitation for all. We looked to find issuers who not only decreased their water usage relative to competitors but also considered the ‘usage relative to revenue’, which was found to be a helpful feature of the Bloomberg terminal. Similarly, it was important for us to find issuers who not only were mitigating negative impacts but rather having a positive impact with regard to clean water stewardship efforts. With a number of UVM students intimately connected to Lake Champlain and its surrounding ecosystems, we realize clean water to be a paramount goal of our investment council.

The second SDG we focused on was ensuring access to affordable, reliable, sustainable and modern energy for all. We determined that impact within this goal can be derived from companies producing sources of clean, affordable and renewable energy, as well as companies sourcing their energy from renewable providers. Companies that our investment council considers for investing need to be making investments in clean technology and energy efficiency, or investments in affordable energy storage technology. In addition, a company meets our criteria if they have a large green power purchase agreement, or is in a contract to source a majority of their energy from a clean, renewable energy source.

The third and final SDG we focused on was achieving gender equality and empowering all women and girls. This SDG was particularly important to our group as many of our group members are part of The Sustainable Innovation MBA Women For Change group on campus. The team developed the following three objective criteria that the corporations offering the bonds should meet for portfolio consideration: female representation in senior management (at least 33%), proven efforts to create equal opportunity for female employee advancement, and women in leadership (CEO, Founder, Chair of the Board).

The thirteen of us have learned much through the process of working on this project, and we are grateful for Chuck, SRIAC, and the UVM Treasurer’s Office for the opportunity. This was a completely voluntarily effort outside of the regular class schedule and curriculum of our academic program. We are fortunate to acknowledge that the dedication of time and effort towards this project has rewarded the members of our team with a new degree of fluency in the field of impact investing and perhaps even more rewarding, a feeling of accomplishment for having the potential to make an impact in alignment with the SDGs and UVM.

We look forward to taking the next steps with this project and seeing how the recommendations of our team might be utilized by the University and beyond. As we have with this project, we are excited to continue finding new ways to incorporate our learning from each and every subject we are exposed to here in The Sustainable Innovation MBA program, building out our sustainable innovation toolkit even further as we progress into the new year.

Onward!