Investing in B Corps: Resilience in Uncertain Times

At Nia Impact Capital, we are proud to be part of the B Corp community, a global movement of businesses that balance profit with purpose. B Corps, short for Benefit Corporations, undergo a rigorous certification process to demonstrate their commitment to environmental sustainability, social responsibility, and corporate transparency. While the process can be daunting, for companies already dedicated to these values, the certification process serves as a valuable framework to assess and increase positive impact.

What It Means to Be a B Corp

B Corp certification is a hallmark of businesses that strive to do good while making a profit. These companies meet high standards in areas like employee treatment, environmental responsibility, and governance. At Nia Impact Capital, we embrace the B Corp lens when selecting investments for our portfolios, ensuring that our capital supports businesses that share our commitment to a sustainable and just economy.

While many B Corps are privately held like Patagonia, King Arthur Flour, and Eileen Fisher, some well-known publicly traded companies have also achieved certification. These companies embody the B Corp ethos by embedding sustainability and social impact into their core business practices.

What It Means to Us to Be a B Corp

We are a B Corp and are proud to share that Nia is the highest scoring asset management firm among B Corps. Check out our B Corp profile here.

At Nia, we see that change takes place one conversation at a time. By investing in businesses working at the intersection of social justice and environmental sustainability, we’re proving that investment capital can be a force for lasting, meaningful impact. This high score reflects our ongoing dedication to empowering our investors to profit from purpose, building investment products for a more just and sustainable world.

How B Corps Align with Impact Investing

As impact investors, we seek companies that integrate ethical business practices and sustainability into their operations. B Corps align with this effort, as they adhere to principles that reflect a commitment to responsible business. Specifically, we focus on:

• Employee Well-Being: Treating employees as valuable assets, rather than expenses, by providing fair wages, growth opportunities, and ethical working conditions.

• Environmental Sustainability: Reducing reliance on single-use plastics, promoting renewable energy, valuing water, and fostering sustainable supply chains.

• Corporate Transparency: Advocating for robust disclosure practices that allow investors and consumers to make informed decisions.

• Purpose-Driven Profitability: Ensuring that a company’s products and services contribute positively to people and the planet.

The Power of the B Corp Movement

Beyond using B Corp certification among the screens and analysis we use in evaluating companies, we engage with the B Corp community in several ways:

• Consumer Choices: Looking for the B Corp logo when shopping ensures that our purchases support ethical businesses with strong human capital management.

• Corporate Partnerships: We work with fellow B Corps, such as Geek Girl Tech for cybersecurity and HireRing for book keeping and administration.

• Advocacy and Education: As a founding member of We the Change, the collective of women-led B Corps, we actively support diversity and inclusion in business leadership.

• Values Alignment for B Corp Staff: Many B Corps are moving to offer their staff investment options like Nia for their retirement plans that fit with the reasons they work at a B Corp in the first place.

Using Our Financial Power for Change

Whether by choosing B Corps for everyday purchases, investing in responsible portfolios, or advocating for greater transparency, we can influence the business landscape for the better.

At Nia Impact Capital, we believe in investing with intention and purpose. Our B Corp certification reflects our commitment to investing for a more equitable and sustainable world, and we encourage others to join us in supporting businesses like Nia that prioritize positive impact along with financial success.

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Important Disclosures 

The views presented here are those of Nia Impact Capital (“Nia”) and these views may be subject to change. All information is obtained from sources believed to be reliable, yet Nia does not certify the accuracy or completeness of this information.This article does not constitute an offer to sell, or the solicitation of any offer to buy any security. All investments carry risk. An investor is strongly advised to consult with their investment professionals prior to making investments to ensure that they understand any associated risks.

The incorporation of environmental, social and governance (“ESG”) considerations into the investment process may cause the investment adviser to make different investments than other funds that have similar investment portfolios and/or investment styles.  Under certain economic conditions this could cause the investment adviser’s performance for any of its portfolios, including the Fund, to be worse than similar funds that do not incorporate such considerations into their investment strategies or processes.  In applying ESG criteria to its investment decisions, the investment adviser may forgo higher yielding investments that it would invest in absent the application of ESG investing criteria.