HIP Methodology

Triple bottom line investments are the fastest growing group of managed assets globally. More and more investors – whether everyday, accredited or institutional – are looking for ways to earn attractive returns and solve human problems.  To date, their primary option has been to screen out ‘undesirable’ companies based on ‘dirty’ industries.

The “HIP” Way

HIP Investor offers a new approach that appeals to mainstream investors, realizes better long-term financial performance, and provides a unique lens for ALL companies. HIP seeks to augment traditional financial valuation with quantifiable measures of human impact that drive higher shareholder value.  When impact drives higher profit, more capital will be attracted to those more HIP companies.  Top talent will also migrate to companies that are “green� and “sustainable� – as 92% of new undergraduates say they do.  And with companies like GE and Walmart investing in sustainable initiatives, they set the course for being role models to follow.

Comprehensive Framework

HIP’s comprehensive framework redefines companies’ relationship to society by taking all stakeholders into account, across customers, employees and suppliers as well as the environment.

Drawing from Maslow’s hierarchy of needs, solutions to core human problems like Health (physical and mental), Wealth (income and assets), Earth (carbon-neutrality; reusability), Equality (gender and ethnic) and Trust (transparency and credibility) are measured according to quantifiable outcomes (not just policy or process).  This totals to a company’s Human Impact rating.

Each component of Human Impact can drive Profit – from higher revenues

of new products like GE’s affordable ultrasound based on a laptop to lower costs like reusable materials.  In addition, tax incentives from renewable power also boost the bottom line and share prices rise relative to earnings for sustainable companies.

HIP then evaluates the quality of management systems across five dimensions: Vision, Performance Measures, Financial Alignment, Accountability and Decision-Making processes.  The higher the Management Practices the higher the Human Impact, which in turn drives sustainable, profitable growth.

$140 Trillion Invested for Human Impact + Profit

By educating individuals, investors and financial professionals about this HIP method of rating, ranking and valuation – and creating new financial products and funds – we aspire to shift the $140 Trillion in global financial capital deliver the highest possible investment returns across both Human Impact and Profit.

Ultimately, the HIP framework will be applied to business, equity investing, and other investments as a profitable to solve many seemingly intractable human problems – increased access to capital for low-income entrepreneurs (e.g. ABN Amro and ICICI), more affordable health care (e.g GE and Walgreens) and lower greenhouse-gas emission (e.g. Vestas, First Solar).  Many more transformative and positive social outcomes are possible – with HIP as a guiding framework for decision-making, starting with investing.