Global Impact Annual Report

May 2020

In 2019, investments in our impact portfolios:

Equity
Fixed Income

Life Essentials

Human
Empowerment

Environment

Multi-theme spotlight

Equity
Fixed Income

Blackbaud

Investment case
Providing information technology tools for small- and medium-sized businesses can potentially drive efficiency gains and productivity, enabling them to deliver greater value. We believe Blackbaud’s products and services represent an increasingly important lever for its customers, supporting growth and earnings visibility.

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What
Cloud computing solutions provider focused on nonprofit businesses and the distinct needs of social impact businesses

Who
45,000 customers (2018)

3,353 employees (2018)

How much
Cost savings for nonprofits, foundations, and schools

Contribution
Revenue gains and/or cost savings for businesses using the company’s products (aspirational)

Benefits to customers in terms of efficiency gains and decrease in cost of capital (aspirational)

Risk
We believe the company is aware of and effectively managing the risk of slowing growth or an inability to continue innovating and cross-selling products.

KPI Logic Chain metrics

Output
US$900 million in revenue from social good community for software and solutions; 6% year-over-year growth

Outcome
45,000 organizations reached

Impact
Cost savings for nonprofits, foundations, and schools from company’s solutions (aspirational)

Company statistics as of December 2019 unless otherwise specified.  

Progress indicators
Engagement objective(s)
Continue to advocate for more robust measurement of customer results improvement from use of products and services
Core KPI
Benefits to customers include efficiency gains and lower cost of capital
Core KPI metric
Aspirational
United Nations Sustainable Development Goal Alignment
UN sustainable goal 9 Industry, Innovation and Infrastructure icon

UN sustainable goal 9.3 icon

Target 9.3
Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and market

KfW

Investment case
KfW is a high-quality state-owned development bank in Germany. The bank focuses on providing capital to support social and environmental projects within Germany and in developing countries.

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What
Supranational bonds to support environmental, social, educational purposes

Who
Germany

Developing and other developed countries

How much
EUR 14.6 billion (US$16.1 billion) to support sustainable development of municipalities and public/private institutions

Contribution
Venture capital for 37,000 startups and small- and medium-sized enterprises (SMEs)

Energy efficiency and climate action

Municipal and social infrastructure

Housing construction, with emphasis on transition to a greener economy

Risk
Standard credit risk; however, we believe KfW’s importance and long-standing explicit guarantee from the German government mitigate this risk

KPI Logic Chain metrics

Output
EUR 7.6 billion (US$8.4 billion) in development financing for affordable housing projects

Vocational training for 83,000 individuals, as well as start-ups and SMEs

Outcome
370,000 energy-efficient housing units constructed or refurbished

Job placement for trainees (aspirational)

8 million metric tons of CO2 avoided

Impact
Economic and social benefits of affordable housing, education, financial inclusion, and clean energy (aspirational)

Issuer statistics as of 2019.

Progress indicators
Engagement objective(s)
  • Review issuer progress and alignment with impact themes
  • Request more comprehensive, issuer-level statistics demonstrating positive social and environmental impact
Core KPI
  • Energy-efficient housing units constructed or refurbished
  • CO2 emissions avoided
Core KPI metric
  • 37,000 housing units
  • 8 million metric tons
United Nations Sustainable Development Goal Alignment
UN sustainable goal 8 Decent Work and Economic Growth icon

UN Sustainable Goal 8.3 icon

Target 8.3
Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services

UN sustainable goal 13 Climate Action icon

UN Sustainable Goal 13.aicon

Target 13.a
Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change

The views expressed herein are those of the author(s), are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may make different investment decisions for different reasons. | Other investment firms may take different views. All investing involves risk. Investors should consider the risk that may impact their capital before investing. The value of your investment may become worth more or less than at the time of original investment. Please refer to the Investment Risks section at the end of this page for more information.

Portfolio spotlight examples represent the largest holding in each theme, including “Multi-theme” as of 31 December 2019. (“Multi-theme” refers to companies representing more than one theme.) These examples are for illustrative purposes only and should not be interpreted as specific security recommendations. Wellington determines the goals and targets that, in our view, each portfolio company or issuer is aligned with. Language for the goals and targets has been abbreviated, but not otherwise altered, from UN.org. Wellington Management supports the United Nations Sustainable Development Goals. | Sources: Wellington Management, UN.org

Alignment with the UN SDGs

In 2015, we launched our first impact approach with a diversified set of impact themes, which were based on years of research and extensive consultation with internal and external advisors. When the United Nations Sustainable Development Goals (SDGs) were published, we were pleased to see how well our themes aligned.

For each company and issuer in our portfolios, we tag the goals we believe they align with, as well as any of the 169 underlying targets outlined by the UN. Our high standards for inclusion result in a strategy that naturally supports many of the SDGs. All of the companies and issuers we invest in offer what we consider to be much-needed solutions to many of the major challenges identified in the SDGs. Wellington is proud to continue supporting — and working toward — the UN SDGs.

Our commitment

Exploring innovation in impact measurement and management

Importance of engagement

Aiming to enhance positive social and environmental impact and create lasting value