Justin Conway, Chief Product & Partnerships Officer answers questions for the Sustainable Business Magazine on Calvert Impact, an impact investment firm helping people and institutions invest for social and climate justice. He is Chief Impact Officer of the Cut Carbon Note, an investment grade fixed income product financing sustainability upgrades for buildings across the US.
Could you provide an overview of Calvert Impact and your role?
Calvert Impact is a global impact investment firm that helps all types of investors and financial professionals invest in solutions that benefit people and the planet. Since 1995, we have mobilized more than $5 billion to grow community-based organizations and funds through innovative products. I’ll mention a couple of them…
Throughout the U.S. and in more than 100 countries, the Community Investment Note directs capital to organizations who are deploying solutions that address climate change and promote economic inclusion. Through the Community Investment Note® we have helped seed and develop impact markets including affordable housing, community development, renewable energy, environmental sustainability, and more.
The Cut Carbon Note is an investment grade-rated fixed income product that finances sustainability upgrades for commercial, industrial and multi-family buildings across the US with the objective of reducing carbon emissions and changing the way we build.
My role is to help us expand our platform of investment products that meet the financing needs in communities around the world while also meeting the requirements of investors. I’ve been with Calvert for 20 years but there’s still much work to be done to scale the innovation and impact in investing.
What is the demand like for green investment pathways?
Environmental sustainability and renewable energy have been our investors’ top interests for many years, and this has held across both individual and institutional investors. We’ve seen our investors and advisors continually move their focus from how we can do less harm to how we can invest in solutions with measurable impact.
We’ve seen this translate to action. Over three-quarters of our investors have made a new green investment in the last couple of years, and 90% of our financial advisors have reported helping clients make new green investments. This pattern of increasing appetite for sustainable investing extends beyond our work; according to Morgan Stanley’s recent Sustainable Signals survey, more than 90% of North American asset owners expect to increase investment in sustainable strategies over the next two years.
Who can invest in Cut Carbon Note?
Both the Community Investment Note® and the Cut Carbon Note® are open to retail and institutional investors in US brokerage accounts so that all can participate, with investment minimums of $20 and $1000, respectively. The majority of dollars in Cut Carbon typically come from insurance companies, pension funds, foundations, mutual funds, and private wealth given their familiarity and interest in asset-backed securities.
Solar Panels on Euclid building” class=”wp-image-41280″ style=”width:553px;height:auto” />How do you accurately track carbon and energy savings across the building portfolio?
Our portfolio partner provides free upfront engineering and business case analysis on the efficiency improvements to help maximize environmental and financial benefits for building owners. All of the buildings are then enrolled in a utility monitoring service, so that we’re able to track the actual carbon, energy, and water savings, compare them to the estimates, and report back to investors.
What future projects or goals do you have planned?
Over the next three years, Calvert Impact will expand the Cut Carbon Note® portfolio to reduce carbon emissions and save energy in more buildings, continue to set higher standards in commercial energy efficiency practices, and advance transparency in reporting of both financial and impact outcomes. We will also launch some innovative new products and continue to deepen our impact through strategic partnerships and thought leadership.
Much has changed since Calvert Impact was founded 30 years ago. While there are now more environmental solutions than ever, many communities lack access to those solutions and the capital needed to finance them. Our goal is to keep identifying and filling the gaps so we can serve communities while developing the market for sustainable investing.
We have built a platform primed for growth and look forward to playing a critical role in scaling sustainable investing in the years ahead.
Environmental sustainability and renewable energy have been our investors’ top interests for many years, and this has held across both individual and institutional investors. We’ve seen our investors and advisors continually move their focus from how we can do less harm to how we can invest in solutions with measurable impact.
About Justin Conway
Justin is excited about the growing impact of the firm’s investment platform including Community Investment Note, Cut Carbon Note, Mission Driven Bank Fund, and beyond. He manages the Investor Relations team that has supported over 20,000 investors and financial professionals on their impact investing journeys, sits on the Staff Investment Committee, and is Chief Impact Officer of the Cut Carbon Note. He previously led Calvert Impact’s investment advisor in providing customized portfolio services to institutional investors.
Prior to joining Calvert Impact back in 2006, Justin managed the Community Investment Program of the Social Investment Forum and Green America. Before that he worked on human rights in both Asia and Central America. He received a Master’s in Applied Economics from Johns Hopkins University and a Bachelor’s in Sociology and Statistics from James Madison University.
Justin currently serves on the board of Aeris, which is focused on driving transparency and accountability in impact investing, and on advisory committees for US SIF and the Global Impact Investing Network. He has also served on the boards of US SIF, the association of financial professionals engaged in sustainable and impact investing, and Green America, dedicated to harnessing our economic power to create a sustainable world. He lives and plays in Washington DC with his amazing wife and daughter.
