THE TRIPLE BOTTOM LINE* SIMULATION®
…Without Taking Risk”
*Earning Financial, Social and Environmental Dividends
For Treasurers and Investors
The Simulation At A Glance
The goal of the Triple Bottom Line Simulation was to allow investment officers to compare returns on social investments with their existing portfolio returns to assess the favorable returns and consider investing socially.
Important Note: The Simulation was run for nine quarters and demonstrated that $100 million portfolios can be 100% socially invested across all asset classes and be financially competitive, even when counting social and environmental dividends as having no value. The full data is presented here because of its demonstration value. CMC expects grant funds in the future to allow for the Simulation to be taken to the next level.
The benefit of the Simulation was that treasurers learned the actual product options by asset class of social investments without taking risk and could review the products’ investment returns from inception.
The Simulation was designed by 40 investors and treasurers at a May 21, 2001, New York meeting to meet their needs and was reconsidered on June 10, 2002, at a New York City meeting.
Evaluation: After more than two years of performance, the majority of the five simulations were outperforming their financial benchmarks well, using standard financial analysis practices. Check out the 2002 second quarter returns here.
Features of the Simulation:
- Close tracking of the financial benchmarks
- Showcases the leading socially responsible investment products of leading companies.
- Shows which products feature which social dividends.
- Offers asset class simulations for different groups of treasurers (Endowments & Foundations, Family Offices, Not-For-Profits, and Religious Institutions.)
- Produces “triple bottom line” returns (financial, social, environmental).
“TRIPLE BOTTOM LINE SIMULATIONS” CONFERENCE
June 10, 2002 – New York City