Investment Management
September 14, 2021
Glenmede Global Growth Fund: 2020 Impact Annual Review
At Glenmede, impact begins here
Our impact measurement approach overlays frameworks by industry-leading impact measurement organizations Impact Management Project, United Nations SDG Impact and Global Impact Investing Network’s IRIS+. We quantify impact outcomes for the whole portfolio across six thematic areas of focus where technological advancements are capitalizing on global demographic and economic growth characteristics to promote sustainable prosperity. Each thematic area either impacts the environment or impact society with sample impact metrics shown below. Data available is presented as reported by underlying managers.
United Nations Sustainable Development Goals
In 2015 the United Nations released its Sustainable Development Goals, a collection of 17 goals designed to be a “blueprint to achieve a better and more sustainable future for all.” It is hoped these goals can be achieved by 2030. As of December 31, 2020, our 42 companies in the Global Growth Fund have actively contributed to targets underlying 14 of the 17 SDGs
Our reach
The private investment landscape is changing as the world becomes more globalized and technology innovations cause disruptions across all sectors of the capital markets. Alongside the vast investment opportunities, expanded growth in emerging markets is causing investors to look beyond U.S. borders. The Glenmede Global Growth Fund capitalizes on these technological and growth trends through its investment portfolio to impact lives across the world as shown in the map and metrics below.
Sustainability and energy access
The problem
Investing in infrastructure, innovation and technology drives economic growth and development. With the majority of the world population currently living in cities and strong macro trends pointing to increased urbanization, new industries and technologies are becoming more important to facilitate sustainable development. Industries such as transportation, manufacturing and energy will need additional investment to be more environmentally conscious and drive toward a more sustainable world. Our current investments are dedicated to reducing waste and greenhouse gas emissions.
The investments and impact outcomes
As of December 31, 2020, Glenmede Global Growth Fund had 11 underlying investments in this sector. In aggregate, these companies have contributed towards the following outcomes.
Impact outcomes
Case Study: Gidara Energy
The world generates more than 2 billion tons of municipal solid waste annually, with at least 33% not managed in an environmentally safe manner.4 Gidara Energy is an industrial growth platform converting municipal solid waste into bio-methanol, unlocking the maximum value from nonrecyclable waste by converting it into cleaner valuable end products. Gidara Energy’s first plant, Advanced Methanol Amsterdam (AMA), will produce an average of 87.5 kilotons per annum (KTA) of advanced methanol from 175 KTA of nonrecyclable waste.5
Contribution to SDGs6
Health & Wellness
The problem
Good health is essential to society, economic activity, and sustainable development as the recent global pandemic around COVID-19 highlighted. The United Nations highlighted the complexity and interconnectedness of widening economic and social inequalities, rapid urbanization, threats to the climate and the environment, the continuing burden of HIV and other infectious diseases, and emerging challenges such as non-communicable diseases. We believe improving quality of healthcare outcomes, expanding access to healthcare services and products, and increasing affordability of healthcare services is how you can truly make an impact in healthcare.
The investments and impact outcomes
As of December 31, 2020, the Global Growth Fund had 20 portfolio companies in the health and wellness sector, from early-stage life sciences to digital health to traditional healthcare practices. In aggregate, these companies have achieved the following:
Impact outcomes
Case Study: CapitalRx
Capital Rx believes it has the solution to drug pricing — a Clearinghouse ModelTM framework that simplifies pricing and frees up resources to improve patient care. The company views its pricing framework as more transparent, fairer and more efficient.
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Education
The problem
Millions of children and young people were out of school before the global pandemic, and more than half of those in school were not meeting minimum proficiency standards in reading and numeracy.13 The spread of COVID-19 exacerbated these education problems as schools were closed, affecting more than 1.5 billion children and young people (90% of the world’s student population).14 While many schools pivoted to remote learning, the digital divide will likely continue to widen existing gaps in education equality. 15 Similar to healthcare, we believe improving the quality of, access to and affordability of education can impact society.
The investments and impact outcomes
As of December 31, 2020, the Global Growth Fund had nine portfolio companies focused on education. In aggregate, these companies have achieved the following:
Impact outcomes
Case Study: BYJU’S
In developing countries, private education providers play a critical role in delivering affordable education, skills and training relevant to the needs of local labor markets.16 BYJU’S, with more than 80 million users globally, is the world’s most valuable private ed-tech company. The Bangalore-based company’s app offers highly adaptive, engaging and effective learning programs for students in grades K-12. In addition to its current user base, it is also focused on empowering an additional 5 million children from underserved communities with quality education by 2025.
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Endnotes
1. Calculated as equal-weighted average of each underlying fund manager’s diversity statistics.
2. People of Color as all non-White racial groups.
3. % Women Benchmark from Preqin 2020 Women in Alternatives Report. POC % Benchmark from McKinsey: https://www.mckinsey.com/industries/private-equity-and-principal-investors/our-insights/how-private-equity-can-catalyze-diversity-equity-and-inclusion-in-the-workplace
4. World Bank https://datatopics.worldbank.org/what-a- waste/trends_in_solid_waste_management.html
5. Gidara Energy (https://www.gidara-energy.com/) and Ara Partners.
6. 7.2 Affordable & Clean Energy: By 2030, increase substantially the share of renewable energy in the global energy mix. 8.8 Decent Work & Economic Growth: Protect labor rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment. 9.4 Industry, Innovation, & Infrastructure: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities. 11.6 Sustainable Cities & Communities: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management. 12.2 & 12.5 Responsible Consumption & Production: By 2030, achieve the sustainable management and efficient use of natural resources and substantially reduce waste generation through prevention, reduction, recycling and reuse. 13.1 Climate Action: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries. 14.1 Life Below Water: By 2025, prevent and significantly reduce marine pollution of all kinds, in particular from land-based activities, including marine debris and nutrient pollution. 15.3 & 15.5 Protect, Restore, and Promote Sustainable Use of Terrestrial Ecosystems: By 2030, combat desertification, restore degraded land and soil, including land affected by desertification, drought and floods, and strive to achieve a land degradation-neutral world and take urgent and significant action to reduce the degradation of natural habitats, halt the loss of biodiversity, and by, 2020, protect and prevent the extinction of threatened species.
7. Gidara Energy (https://www.gidara-energy.com/) and Ara Partners.
8. IRIS+ is the generally accepted system for impact investors to measure, manage, and optimize their impact.
9. 3.8 Good Health & Well-Being: Achieve universal health coverage, including financial risk protection, access to quality essential healthcare services and access to safe, effective, quality and affordable essential medicines and vaccines for all. 8.2 & 8.10 Decent Work & Economic Growth: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labor-intensive sectors and strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all.
10. Capital Rx & Decision Resources Group, Capital Rx website.
11. Capital Rx & Decision Resources Group, Capital Rx website.
12. Capital Rx: https://www.flipsnack.com/Capital Rx/capital-rx-client-storybook.html
13. United Nations Sustainable Development Goals: https://sdgs.un.org/goals/goal4
14. United Nations Sustainable Development Goals: https://sdgs.un.org/goals/goal4
15. United Nations Sustainable Development Goals: https://sdgs.un.org/goals/goal4
16. IFC and World Bank Group. “Cultivating a Love of Learning in K-12.” April 2018.
17. Indian cities are classified as tier I, tier II and tier III cities based on their population and other associated factors.
18. 4.1 Quality Education: By 2030, ensure that all girls and boys complete free, equitable and quality primary and secondary education leading to relevant and effective learning outcomes.
19. Owl Impact Outcomes Report 2020.
There can be no assurances that Glenmede’s or the Fund’s investment objectives will be achieved or that such investments will be successful. Similarly, there can be no guarantee of future performance, results or courses of action. Certain of the information contained in this Report represents or is based upon forward-looking statements or information. Forward-looking statements or inherently uncertain and changing factors may cause events or results to differ from those discussed herein. Glenmede expressly disclaims any obligation or undertaking to update or revise any such forward-looking statements. All information provided in this report is based on information available to Glenmede at the issue date. Information regarding portfolio companies and underlying investment funds is provided for informational purposes only and is not intended to be used as an indication of the current or future performance of the company or fund. The information provided herein may not be relied on in any manner as advice or as an offer to sell or a solicitation of an offer to buy interests in the Fund or any other fund or product managed or sponsored by Glenmede. Any such offer or solicitation shall only be made pursuant to a private placement memorandum and the applicable fund’s subscription documents, which would only be furnished to qualified investors in accordance with applicable law. The information contained herein is proprietary and may not be reproduced or circulated in whole or in part. Private market investments are speculative and involve a substantial degree of risk. Private market investments are highly illiquid, and sponsors of such investments may not be required to provide periodic pricing or valuation information to investors with respect to individual investments. There may be no secondary market for the investors’ interest. In addition, there may be certain restrictions on transferring interests. Past results are not indicative of future performance, and performance may be volatile