Impact Report - Community Capital Management
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Impact Report
Table of Contents
Introduction 2
Letter from the CEO and President/COO 3
About CCM 7
Diversity, Equity, and Inclusion (DEI) 8
Evolution of Impact Investing 9
Team 10
Investment Strategies 12
Impact Customization 13
2021 Investment Impact 19
Impact Metrics 19
Impact Stories 25
Fixed Income
ABS: GoodLeap Sustainable Home Solutions Trust 25
Agency CMBS: The Moore Building, Little Rock, AR 26
Agency MBS: Customized Pool of Affordable Mortgages
to Low- and Moderate-Income (LMI) Black Borrowers 27
Corporate Bonds: The Massachusetts Higher Education Assistance
Corporation (MHEAC), d/b/a American Student Assistance (ASA) 28
Taxable Municipals: City and County of San Francisco 31
Equities
NextEra Energy Partners 31
2021 Impact Initiatives 33
Impact Institute 33
Impact Videos and Webinars 34
Impact in Action 35
Looking Forward 39
2021 IMPACT REPORT 1
Letter from the CEO and President/COO
Introduction
Letter f rom the CEO and President/COO
We are pleased to share our 2021 impact report, now in its ninth edition. Our strate-
In 2021, we were thrilled to reach a new milestone of $4 billion in assets under management (AUM). We grew the
gies look to have a dual benefit — positive societal impact and competitive financial
fastest we have ever grown in our 22-year history, surpassing $4 billion approximately one year after reaching $3 billion.
returns — and show that investing in solutions to environmental and social problems
We were equally excited to see our flagship mutual fund grow to $3 billion in assets and believe the industry growth
can be profitable and mutually reinforcing. We are increasing the velocity of capital combined with the Fund’s ability to align with clients’ impact objectives and its historical competitive performance
to the underserved and providing an avenue for economic justice and sustainability. drove its progress. Through this growth, we remain committed to exceeding client expectations by providing the highest
quality investment management, comprehensive impact reporting, and timely investor services. To assist with these
efforts, we added four new team members in 2021.
Similar to the beginning of 2020, the first few months of 320 global investors. The research found that 74% of
of 2021 seemed defined by COVID-19, but instead of investors surveyed said they are more likely now to divest This past year, we dove deeper into an important topic — affordable
lockdowns and the exponential spread of the virus, it based on poor ESG performance than prior to the COVID- homeownership to combat the racial wealth gap in the U.S. For
was focused on vaccine rollouts, another infusion of 19 pandemic, and 86% of investors surveyed said they are millions, owning a home remains at the heart of the American dream,
relief stimulus, and a new president’s agenda. Economic more likely now to hold an investment based on its strong yet many still are unable to purchase one. The economic fallout of the Affordable Homeownership Thought
Leadership 2021
recovery looked to be taking place in the second quarter ESG performance than prior to the COVID-19 pandemic.3 pandemic stands to exacerbate the nation’s sizable affordable housing
• Report: Addressing the Black
as many states lifted COVID-19 restrictions and life as shortage and crisis.4 To introduce the series, in February, we wrote a Homeownership Gap in America
The effects of the pandemic have changed behaviors
we knew it pre-pandemic seemed to slowly get back to new report, Addressing the Black Homeownership Gap in America, • Perspectives: The Correlation of
and outlooks with investors looking at ways to rebuild Affordable Housing and Health;
a new normal. The economy continued to grow in the and shared several new perspectives on the topic including how
underserved communities, promote racial equality, The Ongoing Challenges of Affordable
third quarter, albeit at a slower pace than the previous the Community Reinvestment Act (CRA) is essential for promoting Housing for Black and Minority Families;
evaluate companies’ ESG performance, divest from CRA: Essential Legislation for Promoting
six months of the year due to increasing cases of the affordable homeownership. Affordable Homeownership
investments based on poor ESG performance, address
COVID-19 delta variant and supply shortages across most to Underserved Communities
climate change, and help those most in need. In this The CRA is a U.S. federal law designed to encourage commercial • Webinar: Investing in the Dignity of
industries. December saw the emergence of the omicron
report, we share details on how we continue to leverage banks and savings associations to help meet the credit needs of Homeownership
variant casting a shadow over the economy's pandemic
our 22-year history of pioneering and inventive investment • 5in5 video: Affordable Homeownership
recovery. Prices soared at the end of the year as wages borrowers in all segments of their communities, including low- and
solutions to meet the aforementioned needs, and how as moderate-income (LMI) neighborhoods, and is how CCM got its start.
rose too amongst the backdrop of the great resignation.
an investor of our clients’ capital, we are committed to Banks were our first investors that used our customized approach to
In the Federal Reserve's final meeting of 2021, it was
verifying and reporting on the intended environmental and fixed income impact investing by targeting geographic regions where The CRA is critically important for
announced they will look to eliminate the emergency promoting home mortgage lending to
societal benefits of every security. they operate. The CRA continues to evolve, and in September, we were traditionally underserved populations,
quantitative easing (QE) program a few month's ahead
including narrowing the growing
of schedule. pleased to see the Office of the Comptroller of the Currency (OCC) inequalities in wealth and income.
ESG Risk is at the Heart of Investment make good on a promise to rescind the agency's unilateral reforms
Throughout the pandemic, impact and environmental, Decision-Making and Portfolio Construction of the CRA with its issuance of a Notice of Proposed Rulemaking
social, and governance (ESG) investing thrived. Despite, EY Sixth Global Institutional Investor Survey Results (NPR). In addition, the agency is committed to working with the
and possibly because of, COVID-19, 72% of investors Federal Reserve and FDIC on a future joint rulemaking to develop a
of investors surveyed said that, since the
reported that they planned to either maintain or increase COVID-19 pandemic, they attach greater consistent framework across all banks. Our 6th Annual CRA Investing
the volume of capital dedicated to impact investing, 74% importance to corporates’ ESG
performance when it comes to their
Survey, shared in October, included several questions on CRA changes
according to a survey from the Global Impact Investing investment strategy and decision-making. and modernization. We also shared our 3rd Annual Impact and ESG
Network.1 And roughly three-quarters of those in the Investing Survey at the same time with educational data points on
Millennial and Z generations say the crisis has made impact investing across asset classes, most popular impact areas,
of investors surveyed said that a
them more sympathetic to the plight of those around and what are the most important factors when looking for impact and
corporate having a strong ESG program
the world, with a strong desire to have a positive impact 86% and performance would have a significant
and direct impact on analyst
ESG investing managers. We invite you to read both surveys as they
on their community, according to The Deloitte 2021 recommendations today. reflect the most up-to-date opinions of investors in the evolving impact
Millennial and Gen Z Survey.2 The pandemic has acted as investing industry.
a “powerful ESG catalyst,” according to a survey from EY Source: EY Institutional Investor Survey
2 2021 IMPACT REPORT 3
Introduction Letter from the CEO and President/COO
Over the summer, we introduced the Impact Shares Affordable Housing MBS ETF
Impact Institute (Ticker: OWNS), for which we serve as sub-adviser. OWNS aligns with our mission
The mission of CCM’s
Impact Institute is to
and many of our impact themes and initiatives as it is designed to support the
propel collaboration and preservation and growth of affordable homeownership by creating financing for LMI
explore advancement in
the space by providing borrowers. OWNS offers investors a capital markets solution for bridging the racial
a forum for impact wealth gap to help address the affordable housing crisis in the U.S. and seeks to
investment insights,
thought leadership, make a positive impact on the well-being of individuals, families, and communities.
and education.
To close out the year, we hosted our fifth annual impact awards competition with
Baker School Apartments in Denver, CO winning this year’s prize based on votes from
All of our content, including surveys, are now part of our newly launched Impact all of you. As we have done in prior years, the winner was awarded a $10,000 donation.
Institute, an innovative hub for in-house research and knowledge sharing on impact
investing. Other new 2021 reports in the Institute include Aligning Faith and Finance,
WINNER Impact Themes This
Place-Based Impact Investing, and several other research pieces and perspectives CCM
Baker School Investment Helped Support:
IMPACT
on a variety of topics from Diversity, Equity, and Inclusion (DEI) to the Great Wealth AWARDS
Apartments Affordable Health and
Transfer. We also launched our new 5in5 video series, which features five questions 2021
Rehabilitation Care
Denver, CO
in five minutes on relevant and timely topics in impact and ESG investing.
Affordable Housing
Baker School Apartments is a Low-Income
Our 2020 initiatives — Minority Community Advancement Racial Empowerment Housing Tax Credit (LIHTC) property where Image Source: Baker School Apartments
all 142 units are reserved for low-income resi- Disaster Recovery, Resil-
Strategy (CARES) and COVID-19 Relief — continued to grow in 2021. As of the dents whose income does not exceed 60% of (formerly Unison Housing Partners), a social- ience, and Remediation
end of the year, we have invested on behalf of clients $1.1 billion and $120 million, the area median income. The property is in ly conscious housing authority that seeks to
a moderate-income, majority-minority, and create attainable and sustainable housing
respectively, in these programs since their inceptions.5 Economic Inclusion
high-poverty census tract where 68% of the and communities for vulnerable families and
population are minorities and 31% live below individuals, and Growing Home, a non-profit
the poverty line. Constructed in 2018, the serving children and families in north metro
In an effort to further support these two issues as well as those in other impact property was fitted with solar panels to help Denver. Growing Home provides high-need
Education and Childcare
areas, we signed on to several investor statements and commitments in 2021. decrease traditional energy use. Baker School services at Baker School Apartments including
Apartments feature Energy-star appliances, after-school programs, cooking classes, and
Highlights include: an in-unit washer and dryer, and a private financial planning assistance for all residents
Healthy Communities
patio or balcony. The Apartments offers its and for the surrounding community.
• Green America urging the Securities and Exchange Commission (SEC) to uphold residents amenities including a community
kitchen, classroom, business center, fitness
During the early stages of the COVID-19 vacci-
nation rollout in the spring of 2021, Delwest
Human Empowerment
the current shareholder resolution process that allows investors — even small center, dog park, playground, and counseling
partnered with the Colorado Department of
rooms. All utilities are included in the rent.
investors — to raise crucial social, environmental, and corporate governance Health to host a two-part, free vaccination clin- Minority Advancement
Baker School Apartments is owned and ic. Approximately 100 residents from Delwest
issues with Corporate America managed by Delwest Management, which has affordable housing developments as well as
Climate change is at partnered with local Denver organizations to community members who might have other- Poverty Alleviation
the heart of investment
decision-making
• Domini Impact Investments, the Interfaith Center on Corporate Responsibility provide supportive services to residents. These
organizations include Maiker Housing Partners
wise had a hard time accessing the vaccine
received the Pfizer two-part dose.
according to EY’s sixth (ICCR), and the New York City Comptroller’s Office Statement to the business
global institutional community in response to the Coronavirus crisis
investor survey. A United
Nations scientific report
issued in August by • ICCR’s Investor Statement of Solidarity and Call to Action to Address While much of the year remained virtual — for employees and for conferences and
the Intergovernmental Systemic Racism events — we were still able to celebrate some milestones via Zoom and even start
Panel on Climate a new CCM book club. We were excited to come together as a firm for the first
Change noted that even
if nations started sharply
• The Net Zero Asset Managers Commitment is an international group of asset
time in two years at an offsite retreat in November. Employees enjoyed in-person
cutting emissions today, managers committed to supporting the goal of net zero greenhouse gas
team building activities and spending some time away from the “office.” We hope
total global warming is emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5
likely to rise around 1.5 you enjoy reading our 2021 annual impact report and thank our clients, colleagues,
degrees Celsius within degrees Celsius, and to supporting investing aligned with net zero emissions by
the next two decades,
and friends for their ongoing support.
2050 or sooner6
a hotter future that is
now essentially locked
in. Climate change is
• ICCR’s Investor Letter on Permanent Federal Paid Family and Medical Leave, Sincerely,
real and intensifying, representing $1.6 trillion in assets under management, calling on the U.S.
and its impacts will be
Congress to pass a comprehensive and permanent federal paid family and Todd Cohen Alyssa Greenspan, CFA
catastrophic if we do
not act now. medical leave program by the end of 2021 Founder and CEO President and Chief Operating Officer
4 2021 IMPACT REPORT 5
Fixed Income Equities
Investment
Strategies
CCM team members re-unite for the first time in nearly MUTUAL FUND AboutMUTUAL
CCM FUND
two years at the firm’s first offsite retreat where they • CCM Community Impact Bond Fund • CCM Core Impact Equity Fund
collaborated and participated in team-building activities. – Banks (CRAIX) • CCM Small/Mid-Cap Impact Value Fund
– Institutions (CRANX)
CCM is– an independently
Individuals (CRATX) owned investment adviser with $4.2 billion in AUM and
Alternatives
a 22-year history of client customization and management of impact and ESG
ETF (SUB-ADVISER) MUTUAL FUND
investment strategies. To date, we have invested approximately $12.6 billion in impact
• Impact Shares Affordable • CCM Alternative Income Fund (CCMNX)
and ESG investments
Housing MBS ETF across the U.S. on behalf of investors. Working through a
network of investment consultants and advisors, we serve a wide variety of clients
SEPARATE ACCOUNT
including faith-based investors, endowments, foundations, healthcare organizations,
• Core
non-profits, public funds, and high net worth individuals.
• Mortgage-Backed Securities
• Tax-Exempt Municipals
These investments align Since inception, we have
Impact
We have invested in all with one or more of our invested approximately
50 18 12.6
STATES IMPACT THEMES BILLION
plus the District of Columbia, Puerto Rico, supporting a variety of positive in impact and ESG initiatives
Guam, and the U.S. Virgin Islands environmental and societal outcomes. on behalf of our clients.
Initiatives
Invested $XXX million in our COVID-19 Relief Invested $952 million in our Minority CARES
Initiative since its launch in May 2020 Initiative since its launch in June 2020
2
Impact and financial data are approximate values as of 09/30/21.
About CCM
Our mission seeks to deliver superior risk-adjusted
returns through investment strategies that contribute
to positive environmental and social outcomes.
6 2021 IMPACT REPORT 7
About CCM Evolution of Impact Investing
August 2021
Diversity, Equity, and Inclusion in the Workplace
Over the past year, many U.S. companies have devoted attention to corporate inclusion efforts, with a strong focus on
diversity in hiring and promotions. And for good reason. The current trajectory in promotion and hiring rates would
take nearly 100 years for every level of the corporate pyramid to mirror the Black share of the total U.S. population.
And while Black workers make up 12% of the entry-level jobs, those numbers shrink to 7% just one step up the career
DEI Evolution of Impact Investing
ladder into first management roles.1
new DEI committee shaped by our values and our work with team
CCM is committed to the principles of DEI. The firm believes that diversity in the
“The road to equality isn’t a one- or two-year corporate program. members across the firm and with different backgrounds and life
It’s not just about hiring 10 extra people from a historically Black experiences. James Malone, CFA, was named chief diversity officer
college; it’s about creating a culture that if you recruit them that
where he serves as chairman of the DEI committee in addition to his
they want to stay.” – Lareina Yee, a senior partner at McKinsey
role as chief financial officer.
and the firm’s diversity and inclusion chief2
Commitment to Diversity in the As part of our DEI’s committee launch, we hosted a Cultural
Expansion Webinar in summer 2020 with Kemy Joseph,
Workplace Co-Founder of F.E.A.R.S. Advantage™, to increase our awareness
decision-making process enhances results, and as such, we facilitate diversity
and open a dialogue with employees regarding our historical and
Many companies are committing to increasing their diversity hiring new DEI efforts.
efforts by setting mandatory metrics. Target pledged to increase its
representation of Black employees by over 20% in the next 3 years,
Background
while Best Buy plans to hire a diverse candidate in at least 1 of every 3
corporate salaried roles. More than 30 CEOs from companies including Strategic DEI Plan
IBM and Nike are backing a startup, OneTen, aimed at creating one
In an effort to cultivate an inclusive work environment in which all
million “family sustaining” jobs for Black Americans within a decade. The
employees are meaningfully engaged and can develop and succeed,
initiative will focus on helping those without a college degree train, find,
CCM developed a DEI Strategic Plan for fiscal years 2021–2024 to
and retain jobs at the participating companies.3 Even small- and mid-size
in employee hiring, training, and promotion and consider diversity factors in our
provide a blueprint to build upon. This plan includes measurable
firms are building diversity, equity, and inclusion (DEI) strategies. It could
actions that are designed to help fully integrate diversity, inclusion,
be one of the most important initiatives for a firm to enhance culture
and opportunity in the strategic decision-making of the firm, enhance
while positively impacting its bottom line. And it is also increasingly
organizational effectiveness, and meet future challenges. It envisions
important to employees. A majority of employees say it is important for
that CCM leadership and managers in all departments will assume
them to work at an organization that prioritizes diversity and inclusion,
direct responsibility for its implementation, recognizing that promoting
according to a recent survey by CNBC and Survey Monkey.4
diversity and inclusion and ensuring opportunity are both an individual
and a collective responsibility and should be a prominent part of the
• •
CCM’s DEI Efforts fabric and culture of the firm.
investment processes. In an effort to cultivate an inclusive work environment in CCM was founded in 1998, and our flagship core In keeping with the firm’s impact and ESG investing
Like many of the aforementioned companies, CCM is committed to DEI The plan was finalized in 2021 and is now being implemented. We will
principles. We believe incorporating DEI policies and practices enhances be measuring diversity performance and overall assessment of the
results, and as such, we facilitate diversity in employee hiring, training, plan’s goals semi-annually beginning in December 2021. Part of the
and promotion and also consider them in our investment processes. review includes adjusting any areas that need more clarification. On
In 2020, CCM formalized these time-tested practices and created a the following page is a list of our strategic plan’s goals.
Members of CCM's DEI Committee
which all employees are meaningfully engaged and can develop and succeed, CCM
James Alyssa Andy Priscilla Danny
bond fund was launched in August 1999. The earliest focus, in 2013, the firm responded to investor
Malone, Greenspan, Kaufman, Lozevski, Continued on Page 2
Caballero,
Chief President Chief Head of Investment
Financial & COO Investment Operations Analyst
& Diversity Officer
Officer
developed a DEI Strategic Plan for fiscal years 2021–2024 to provide a blueprint investors were predominantly banks looking to meet demand for an income-driven, market neutral, impact
1
In August, we released to build upon. This plan includes measurable actions that are designed to help community development investing under the require- and ESG fund and thus launched its liquid alternative
a new perspective,
“Diversity, Equity, fully integrate diversity, inclusion, and opportunity in the strategic decision-making ments of the Community Reinvestment Act (CRA). mutual fund.
and Inclusion in of the firm, enhance organizational effectiveness, and meet future challenges. It
the Workplace,”
envisions that CCM leadership and managers in all departments will assume direct
• Given the subsequent growth in demand for impact • In late 2017, we were appointed advisor to two
which shares details and ESG investments from institutions and individual impact equity mutual funds.
on CCM’s DEI responsibility for its implementation, recognizing that promoting diversity and
investors, the firm began managing separate
commitment.
inclusion and ensuring equal opportunity are both an individual and a collective
accounts in 2001 and launched an institutional and
• In 2021, we became the sub-advisor to the Impact
Share Affordable Housing MBS ETF, managed by
responsibility and should be a prominent part of the fabric and culture of the firm.
retail share class of its flagship fund in 2007. Impact Shares Corp.
Members of
CCM's DEI Firm and Impact Highlights Over the Years
Committee CCM Asset Growth | In $Billions
$5
$4
$3
James Alyssa Andy Priscilla Daniel
$2
Malone, CFA Greenspan, CFA Kauf man Lozevski Caballero
Chief Financial President & Chief Chief Head of Investment $1
& Diversity Operating Officer Investment Operations Analyst
$0
Officer Officer
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
YTD
1999 • Launched the CCM Community Impact Bond Fund 2013 • Created the first liquid alternative income fund to
(f/k/a CRA Qualified Investment Fund) incorporate impact and ESG metrics
2001 • Introduced concept of “direct impact investing” 2014 • Began our first sustainable agriculture initiative with $50
• Large foundation approached us to manage a million devoted to agriculturally-sustainable businesses
DEI has been part of our culture since its founding 22 years ago. mission-related investment portfolio • Distributed CCM’s first impact report
In 2020, we thought it was prudent to formalize these time-
tested practices and created a new DEI committee shaped by 2002 • Commenced our first impact initiative: $5 million to CDFIs 2015 • Formalized 14 impact themes
• Made our first “gender lens” investment financing a • Completed our 1000th bank CRA exam
our values and our work with team members across the firm business incubator for women-owned businesses
and with different backgrounds and life experiences. 2017 • Added 3 new impact themes
2005 • Launched $100 million initiative for disaster recovery
–— James Malone, Chief Financial and Diversity Officer
relief in the Gulf Coast (Hurricane Rita & Katrina) 2018 • Began managing two equity mutual funds
• Added “Economic Inclusion” as our 18th impact theme
2006 • Started our first small business initiative with $50 million
committed to enterprise development/jobs
2020 • Launched Covid-19 Relief and Minority CARES Initiatives
• Launched $250 million impact initiative in California
2021 • Changed name of flagship fund to CCM Community
2008 • Opened our first separate account dedicated to Impact Bond Fund
environmental initiatives and green programs • Launched Impact Shares Affordable Housing MBS ETF
(Ticker: OWNS)
2012 • Launched $100 million initiative for disaster recovery
• Surpassed $4 billion in AUM
relief for Superstorm Sandy
8 2021 IMPACT REPORT 9
About CCM Team
Team Leadership Business Management Marketing
We are extremely proud
of our team members and
their dedication to making
CCM a leading impact and
ESG investing manager.
They all play a pivotal role
at the firm, and it is import-
Todd Alyssa James Stefanie J. Melodie Jamie Barbara
ant to recognize their talent, Cohen Greenspan, CFA Malone, CFA Little Dinkins Horwitz Seaman
commitment, and diversity. Founder, CEO President and Chief Chief Financial Chief Administrative Chief Marketing Sales and
Operating Officer and Diversity Compliance Manager Officer Marketing
Officer Officer* Specialist
Diversity Breakdown
of CCM Employees Investment Team
Operations and Technology
45%
Gender
55%
Andy Kristin David Jessica Elliot
Men
Kauf man Fafard, CFA Sand Botelho Gilfarb, CFA
Women Wei Wei,
Chief Chief Chief Impact Director of Head of Fixed Priscilla Aaron Alex Frank
Lozevski CFA Strassman Trifan Valles
Investment Investment Strategist Impact and Income
Officer Strategist CRA Research Head of Senior Systems Operations Operations Operations and
21% Operations Architect Specialist Analyst Compliance
33% Analyst
Age
Sales and Client Services
46%
Under 30
30–50 Julie Thomas Alex Cayce Allison
Over 50 Egan Lott Alario Shawn Glansberg
Director of Portfolio Jr. Portfolio Trader Investment
Research/PM Manager Manager Analyst
6%
9% Andy Martha Joff rey Michelle Maria Jackson
3% Shafter Schuman Pearlman DeLaCruz Leon Silverstein
Sr. Client Sr. Client Sr. Client Client Portfolio Client Service Business
12% Ethnicity
Portfolio Portfolio Portfolio Manager Manager Development
Manager Manager Manager Associate
70%
White Asian Daniel Shonali Max Amina Christian
Hispanic/Latino Caballero Pal Esperance Rubin Calnan
Black/African American Investment Investment Performance Impact Research Impact Research
Two or More Races Analyst Analyst and Reporting and Reporting and Reporting
Analyst Associate Associate *Outsourced position
10 2021 IMPACT REPORT 11
About CCM Impact Customization
Investment Strategies Impact Customization Investment Vehicles
Mutal Fund (CCM Separate Account: Clients
There was a lot of Our strategies utilize an innovative approach to fixed income and equity investing We have provided client customization for over
Community Impact Bond invested in a separate
Fund): Clients invested account complete an
media attention on
combining measurable environmental and social positive impacts with rigorous two decades within our fixed income portfolios. in the Fund complete an investment management
‘greenwashing’ impact customization form agreement, which includes
financial analysis, an inherent focus on risk management, and transparent research. Customization allows investors to direct their capital
throughout the specifying their impact specifying their impact
We have seen significant growth in the demand for our pioneering impact and ESG to support specific geographies (also known as place- theme(s), initiative(s), or theme(s), initiative(s), or
year. As a pioneer geographic region(s). geographic region(s).
in impact and ESG investment strategies over the last decade from a variety of investors, including based impact investing), impact themes, or impact
investing, CCM endowments, foundations, faith-based organizations, high net worth investors, initiatives. It can take place in a separate account or in Visit www.ccminvests.com to watch our
seeks to invest in non-profits, and healthcare organizations. Strategies are available in separate our flagship mutual fund.
video on customization in our mutual fund.
high-quality, accounts, mutual funds, and exchange-traded funds, and we develop custom solutions
well-researched
for clients based on their missions and values. Examples include place-based impact
bonds that have
investing portfolios, faith-based alignment, and sustainably focused initiatives.
positive societal
impacts, requiring Impact by or Impact by or Impact by
transparency into Geography Theme Initiative
FIXED INCOME EQUITIES
the use of proceeds
and measurement Mutual Fund Mutual Fund Investments can target geographic Investments can target one or Investments can target one or
of their anticipated CCM Community Impact Bond Fund CCM Core Impact Equity Fund: regions down to the county level. more of 18 impact themes. When both of our impact initiatives:
corresponding • For Banks: CRAIX QUAGX/QAGIX Investors can choose multiple a client selects this option, each COVID-19 Relief or Minority
impact. • For Institutions: CRANX geographies within different investment will align with at least CARES. These investments
— Jessica Botelho,
• For Individuals: CRATX CCM Small/Mid-Cap Impact Value
Fund: QUSVX/QSVIX counties, states, and/or regions one of those specified impact can be anywhere in the U.S.
Director of Impact ETF (Sub-Adviser) with the investments supporting a themes. These investments can
and CRA Research Impact Shares Affordable Housing A LT E R N A T I V E S variety of CCM’s 18 impact themes. be anywhere in the U.S.
MBS ETF
Mutual Fund
Separate Accounts CCM Alternative Income Fund: CCMNX Target
Target One
Impact Theme
by Region
Core Fixed Income
Mortgage-Backed Securities
Securitized or Multiple Impact Themes
Tax-Exempt Municipals
State
The firm has expanded from managing U.S. high credit quality taxable fixed income
impact strategies to impact and ESG investing strategies across asset classes. While
the impact metrics and outcomes captured vary, we execute on our philosophy similarly: For full descriptions For more
or County of all 18 impact information on
• CCM manages assets that align with one or more of 18 impact themes. Initially themes, click here. our initiatives,
visit www.
developed for the firm’s work in fixed income, we have expanded the use of ccminvests.com.
Investments by geography will support a
these impact themes across all asset classes. variety of our 18 impact themes.
• We look for affirmative, bottom-up expressions of impact and ESG qualifications.
• Our two-fold approach seeks positive impact and ESG attributes that align
with our impact themes while also avoiding investments which we believe are
inconsistent with these themes.
12 2021 IMPACT REPORT 13
About CCM Impact Customization
April 2021
CCM and the Sustainable
CCM’s proprietary impact As part of our impact customization, clients receive tailored impact reporting The United Nations Sustainable Development Goals (SDGs), released in September 2015, aim to
tracking and reporting
system measures, detailing the positive impact outcomes of their investments and their multiple end all forms of poverty, fight inequalities, and tackle climate change while ensuring that no one
monitors, and tracks the
positive impact attributes
of every investment.
environmental and social benefits to society and their communities. CCM’s
technology tracks and quantifies each client’s specific impact — allowing Development Goals
is left behind.7 They are the blueprint to achieve a better and more sustainable future for all. While
CCM’s impact themes pre-date the SDGs, we believe they seek to unite like-minded investment
the portfolio to fully align with the client’s impact objectives. Clients meeting managers and have the greatest usage and traction across the industry.
minimum asset requirements receive quarterly impact reports that include Over the years, we have seen a proliferation of U.S. and global standards, goals, and principles that seek to unite like-
comprehensive impact metrics such as geographic mapping and impact theme minded investment managers and their clients around various desirable and needed objectives. While all guidelines
alignment. Our impact reports additionally include a mix of quantitative data and have been helpful to the industry, the one that seems to have the greatest usage and traction are the United Nations’
Sustainable Development Goals (SDGs). The SDGs, released in September 2015, aim to end all forms of poverty, fight
qualitative details, also known as impact stories. These reports aggregate the CCM's Impact Themes and the SDGs
inequalities, and tackle climate change, while ensuring that no one is left behind. They are the blueprint to achieve
value of the individual earmarked investments to illustrate the cumulative impact a better
Many and
of CCM’s 18more
impactsustainable
themes overlapfuture forSDGs
with the all. They address
from human the globaltochallenges
empowerment we
environmental face, including
sustainability thoseand
to education related to
childcare.
that each client’s investments have over time. poverty, inequality, climate change, environmental degradation, peace, and justice. The 17 Goals are all
We have identified below which of our impact themes have the greatest alignment to the SDGs according to the SDG framework. interconnected
and it is important we achieve them all by 2030.1 The SDGs are a call for action by all countries – poor, rich, and middle-
In 2021, we created, Fixed Income Customization, a piece illustrating how UN SDG– to promote
income CCM Impact
prosperity Themes
while protecting the planet.UN 2
SDG CCM Impact Themes
Fixed Income
Customization bespoke impact investing works at CCM. In addition, we updated our Impact No Affordable Health and Rehabilitation Care Decent Economic Inclusion
Poverty Work and
Themes which includes descriptions of our 18 impact themes. At the beginning Affordable Housing Enterprise Development and Jobs
of each calendar year, our Impact and CRA Committee has a meeting to review Common Characteristics Found
Disaster Recovery, Resilience, and Remediation
Economic
CCM's 18 Impact Themes
Growth Gender Lens
our impact themes and make suggestions for modifications. Many of the in All of CCM's Impact
Economic Inclusion Themes: Human Empowerment
Environmental Sustainability
Affordable Health Healthy
Minority Advancement
changes are a result of discussions with clients, the ongoing and evolving needs Throughout our two-plus decades of work in impact and Environmental, and Rehabilitation Communities
Gender Lens Care Seniors and the Disabled
of communities, the types of impact investments that come to market, and Social, and Governance (ESG) investing, we have developed a series of
18 impact themes, where one Human Empowerment
or more theme is aligned with each of Industry, Disaster Recovery, Resilience, and Remediation
additional or new impact data points that align with our themes. Following our Affordable
Innovation, Human
Poverty
our investments. While the 18 themes Alleviation
are distinct and diverse, certain Economic Inclusion
Housing Empowerment
January 2021 gathering, we made slight updates to some of our impact theme and Infra-
common characteristics
Zero canDisaster
be found in all ofResilience,
Recovery, them, whichand are included
Remediation Environmental Sustainability
structure
Impact Themes definitions in addition to the adjustments below. below. We continually
Hunger seek to advocate for greater investment product
Economic Inclusion Arts, Culture, Neighborhood Revitalization
Minority
creation in support of our existing and future impact themes, and by
Gender Lens and the Creative Advancement
Transit-Oriented Development
communicating this need to the broader capital markets, we expect Economy
to play an ongoing, catalyticRural
role Community
in the creationDevelopment
of impact investment Reduced Economic Inclusion
opportunities. Sustainable Agriculture Inequalities
Disaster Recovery, Neighborhood
Human Empowerment
Resilience, and Revitalization
2021 Impact Theme Updates ●
Good
Each theme
Healthlooks
Affordable Health and Rehabilitation Care
and to have positive environmental and/or social
Remediation
Minority Advancement
Disaster Recovery, Resilience, and Remediation Poverty Alleviation
outcomes
Wellthat we believe are societal benefits as a result of capital
• Arts and Culture impact theme now includes the creative economy. This includes investments supporting ethical
Being
Healthy Communities
provided by our investors.
Economic
Sustainable
Inclusion Affordable Housing
Poverty
Alleviation
fashion, sustainable food, social impact media, creative places, and other elements of the creative economy. Poverty Alleviation Cities and
● We look for liquid investment opportunities that contribute to Commu-
Disaster Recovery, Resilience, and Remediation
• Government Supported Communities impact theme is consolidated into a new impact theme, Poverty
Quality overall risk/return
the portfolio’s
impactEducation
theme.
thatChildcare
Education and
Gender Lens
are in alignment with each nities
Education and
Childcare
Economic Inclusion
Rural Community
Environmental Sustainability
Development
Alleviation, with additional statistical measures added for tracking. Poverty is one of the most persistent of
● We must be able to measure, monitor, and track the expected Gender Lens
economic problems in the U.S. with many census tracts and counties scoring below national averages in positiveGender
outcome(s) in Gender
an effort to maintain transparency in our Minority Advancement
Lens Enterprise Seniors and
income, wealth, education, employment, health outcomes, economic mobility, and generational advancement. client reporting,
Equality which has become a trademark of the firm since Development Poverty Alleviationthe Disabled
Poverty alleviation better encompasses the impact of the theme with additional statistical measures used for its inception in 1999. and Jobs Seniors and the Disabled
tracking and alignment. ● We must believe that market-rate opportunities will exist to allow
Clean EnvironmentalTransit-Oriented Development
Sustainable
client commitments to Disaster Recovery,
individual themesResilience, and Remediation
to be fulfilled over time. Stability
Responsible Agriculture
• Rural Community Development impact theme includes additional metrics for tracking. Rural community
Water and
Sanitation
Environmental Sustainability
Consump-
Arts, Culture, and the Creative Economy
Environmental Sustainability
development includes counties that are not part of a Metropolitan Statistical Area (MSA) or a census tract in Gender Lens tion and
Gender Transit-Oriented
Affordable Continued on Page 2 Production
Lens
an MSA that is outside of the MSA's Urbanized Areas, as designated by the U.S. Department of Agriculture's Environmental Sustainability Development
and Clean Climate
(USDA) Rural-Urban Commuting Area (RUCA) Code #1, and outside of tracts with a housing density of over Disaster Recovery, Resilience, and Remediation
Energy Action
Environmental Sustainability
64 housing units per square mile for USDA's RUCA Code #2.
• Transit-Oriented Development includes High Transit® Scores. Transit Score® is a patented measure of how
The SDGs, released in September 2015, aim to end all forms of poverty, fight inequalities,
well a location is served by public transit on a scale from 0 to 100. The Transit Score® algorithm calculates
a score for a specific point by summing the relative "usefulness" of nearby routes. Transit Score® defines About CCMand tackle climate change, while ensuring that no one is left behind.
usefulness as the distance to the nearest stop on the route, the frequency of the route, and type of route. Community Capital Management, Inc. (CCM) is an investment adviser registered with the Securities and Exchange Commission. Headquartered
in Fort Lauderdale with employees in Boston, Charlotte, the New York City area, and Southern California, CCM was founded in 1998 and manages
over $3 billion in assets. The firm believes a fully integrated portfolio – one that includes environmental, social, and governance (ESG) factors – can 1
deliver strong financial performance while simultaneously having positive long-term economic and sustainable impact. CCM’s strategies utilize an
14 2021 IMPACT
innovative approach toREPORT
fixed income and equity investing by combining the positive outcomes of impact and ESG investing with rigorous financial 15
analysis, an inherent focus on risk management, and transparent research. For more information, please visit: www.ccminvests.com.
Impact Customization Impact Customization
Impact Themes
Case Study: Geography Case Study: Impact Theme(s) Case Study: Impact Initiative
This Investment
Helped Support:
Client: Foundation Client: Non-Prof it Client: Religious
Affordable Target: New York City (all 5 boroughs) Target: Economic Inclusion, Poverty Alleviation, Target: Minority CARES
Housing Rural Community Development, and Sustainable
Sector: Taxable Municipals Agriculture Sector: Agency CMBS
Environmental
Sustainability Sector: Corporate Bonds
The New York City Housing Development Corporation (NYCHDC) will use bond
8 The Congress Building Apartments11 is a Low-Income
Healthy
Communities proceeds to finance two senior mortgage loans and one subordinate mortgage Housing Tax Credit (LIHTC) property in Miami, Florida,
loan for two multifamily affordable housing properties. The projects financed Local Initiatives Support Corporation (LISC)10 is a national with 128 units. To qualify for the LIHTC allocation, the
Minority non-profit Community Development Financial Institution property owner agreed to reserve 117 units (91%) for
Advancement provide 599 total units of affordable housing for low- and moderate-income
residents in Manhattan and the Bronx. The NYCHDC mission is to provide (CDFI) certified by the U.S. Department of the Treasury very-low-income residents for a period of 50 years.
Poverty financing to increase the city’s supply of multifamily housing, stimulate economic to provide financial products and services for under- Under an agreement with the Florida Housing Finance
Alleviation Corporation, these units will continue to be reserved for
growth, and revitalize neighborhoods through the creation and preservation of resourced communities and populations. In October
Transit-Oriented affordable housing for low-, moderate-, and middle-income city residents. To low-income residents for an additional 35 years after the
2021, LISC issued $200 million of LISC Impact Notes to
Development first agreement ends. The property is in a majority-minority
further this purpose, NYCHDC seeks to foster thriving, diverse, and sustainable finance community and economic development across
census tract where 62% of the population are minorities.
neighborhoods; finance new construction for residents of a mix of incomes; the U.S. and to help revitalize underserved communities,
preserve affordability within existing housing stock; and protect the city’s most build economic opportunity, and bridge the racial wealth Originally built as an office building in 1925, the Congress
vulnerable residents through supportive housing developments. NYCHDC staff Building Apartments is listed in the National Register of
gap. It will use proceeds of the Impact Notes to refinance
have evaluated the developments to be funded and selected them in part based Historic Places. With a full renovation in 1999, the high-rise
existing debt and to further its mission to support
on the developments’ alignment with the NYCHDC mission. building in downtown Miami was converted to residential
neighborhood and community development organizations
apartments along with 6,000 square feet of commercial
The 2021 bonds, which allow investors to invest directly in bonds that finance and businesses that foster improvement of economic
space on the ground floor. A community room, fitness
socially beneficial projects, are designated as Sustainable Development Bonds. conditions; develop affordable housing and other physical center, and laundry facility were added on the second floor.
The corporation’s Sustainable Development Bonds designation reflects the use facilities; provide amenities and services; and other It provides on-site tenant activities, including financial
of bond proceeds in a manner that is consistent with the Social Bond Principals activities that help revitalize disinvested communities and counseling, education courses, job training, and health-
and the Sustainability Bond Guidelines as promulgated by the International benefit low-wealth individuals and families. care services on at least a quarterly basis. For tenants in
Capital Markets Association.9 NYCHDC has determined that the Bond proceeds affordable units who wish to become homeowners, the
are consistent with the following United Nation’s Sustainable Development Goals: developer agreed to contribute 5% of the tenant’s monthly
Goal 1: No Poverty and Goal 11: Sustainable Cities and Communities. rent for up to three years toward the tenant’s purchase of a
Impact Themes This Investment Helped Support:
home within 60 days of moving out of the Congress Build-
Arts, Culture, Enterprise Devel- ing. The developer is committed to actively helping tenants
and the Creative opment and Jobs
participate in work-ready and/or self-sufficiency programs.
Economy
Human
Affordable Health Empowerment
Impact Themes This Investment Helped Support:
and Rehabilitation
Care Affordable Health
Healthy Environmental
and Rehabilitation
Communities Sustainability
Affordable Care
Housing Affordable Healthy
Minority
Advancement Housing Communities
Disaster Recovery,
Resilience, and Minority
Remediation Poverty Economic
Alleviation Inclusion Advancement
Economic Seniors and the
Inclusion Neighborhood Enterprise Devel-
Revitalization opment and Jobs Disabled
Education and Rural Community Human Transit-Oriented
Childcare Development Empowerment Development
16 2021 IMPACT REPORT 17CCM team members Elliot Gilfarb and Danny Caballero 2021 Investment Impact
visit an affordable rental housing property in Hollywood,
Florida that one of our investments helped finance.
This section details our 2021 impact metrics in both fixed income and equities and
explains in more detail our innovative approach to impact measurement including
ongoing monitoring, tracking, and reporting.
Impact Metrics
Fixed Income12
CCM’s fixed income strategies invest in high-quality, well-researched, fossil fuel free bonds where we have confidence
that the use of the proceeds will have positive societal impacts. We must be able to quantify and report on the expected
impact outcomes and/or detail the qualitative benefits of each investment. This involves monitoring bonds on an
ongoing basis and monitoring bonds with eligible social project selection and reporting criteria. Each of the bonds that
we select for a portfolio must meet our stringent impact and financial criteria. Our impact criteria includes:
Use of Proceeds
The use of proceeds must positively impact a community in one or more ways.
Transparency
Our proprietary approach, whereby we have visibility into the use of bond proceeds, allows us to better
understand the financed programs and have confidence in their expected positive environmental and
social outcomes.
Reporting
2021
We must be able to quantify and report on the expected impact and/or detail the qualitative benefits of
the investment. Quantitative data can include the number of jobs created or the number of affordable
housing units as well as dollar amounts invested in impact themes. Qualitative research is the “story,”
2021
so to speak, which includes detailed explanations of what the security is financing. We report to clients
Investment
on the positive impact outcomes of their investments and offer institutional clients the opportunity to
customize their fixed income portfolios by geographies or impact themes.
Impact
18 2021 IMPACT REPORT 192021 Investment Impact Impact Metrics
2021 Comprehensive Impact: $1.9 billion 2021 Impact by Theme
The firm has invested approximately $12.6 billion in impact and ESG initiatives nationwide on behalf of clients, from One investment can deliver multiple positive societal outcomes. The chart below shows impact metrics across all fixed
inception through December 31, 2021. This includes approximately $1.9 billion invested in 2021 among the following income investments as of December 31, 2021, and how they align with one or more of 18 impact themes.
broad categories:
Affordable Health and Rehabilitation Care 3.2% Healthy Communities 7.0%
Affordable Healthcare Economic and Affordable Housing 25.6% Human Empowerment 3.7%
and Rehabilitation Environmental Initiatives Arts, Culture, and the Creative Economy
Disaster Recovery, Resilience, and
0.5% Minority Advancement 13.0%
Facilities 1.4% Neighborhood Revitalization 1.1%
$804M
Remediation
Economic Inclusion 2.7% Poverty Alleviation 8.5%
$1M In green projects, neighborhood Education and Childcare 2.5% Rural Community Development 2.0%
In affordable healthcare, rehabilitation revitalization, healthy communities, and
Enterprise Development and Jobs 4.2% Seniors and the Disabled 5.3%
care, and opportunities that promote general community development
Environmental Sustainability 12.0% Sustainable Agriculture 0.2%
wellness
Gender Lens 4.1% Transit-Oriented Development 3.0%
Affordable Mortgages Enterprise Development
and Job Creation
$386M
financing approximately 2,500 $0M
affordable mortgages In job creation opportunities, access to 2021 Impact by Geography (In $Millions)
capital, and small business development
The map below shows investment impact by state for all fixed income investments purchased in 2021 on behalf of clients.
Affordable Rental Statewide Homeownership
Housing
$55M 22.7 2.2
$654M Financing for affordable homeownership,
0.001 7.5
11.5
financing approximately 97,000 assistance with down payments, and first- 21.7 1.1 11.5
3.5
affordable rental housing units time homebuyer programs 0.7 1.3 31.3 90.3 0.02 < $1M
53.7
4.2
1.8
42.6
8.7 $1M to $5M
2.1
Comprehensive impact allows for each investment to fall within only one of the categories above. For example, some of our investments 11.0 98.0 45.2 17.7 15.5 30.6
$5M to $10M
have a job creation component in addition to other social and economic initiatives, where it then falls in the one category of “Economic 14.2
3.6 5.0 14.31.9
8.8
and Environmental Initiatives.” In our impact by theme calculation, each investment aligns with one or more impact themes to be able to 13.7 22.9 28.1 $10M to $20M
see all impact outcomes from each investment. Most of our investments have multiple impact theme alignment. 205.0 25.8 27.8 $20M to $50M
2.6
4.8
22.2 2.8
11.6 > $50M
2.9 6.6 23.0
137.7
22.3
0.5
61.7 6.0
4.8
National / Multiple States: 711.2
20 2021 IMPACT REPORT 212021 Investment Impact Impact Metrics
2021 Hybrid Impact: Themes and Geographies Minority Advancement
Some of our themes allow us to calculate and report on additional impact metrics and outcomes in specific geographies. This impact theme uses statistical measures, including majority-minority census tracts and racially or ethnically
concentrated areas of poverty (R/ECAP), to track investments benefiting people and communities of color. We have
Affordable Housing included some of these metrics for 2021 at the state level below.13
This impact theme provides details on the number of affordable loans by state and the number of affordable rental Investments (in $Millions) in Majority- Investments (in $Millions) in R/ECAPs
housing units by state. We have included metrics in 2021 for these impact outcomes at the state level below. Minority Census Tracts by State by State
1.2 0.3
0.3
Affordable Mortgages by State 0.3 1.1 3.0
0.1
0.2
1.3 3.1 46.1 0.0 < $1M 0.9 18.6
13.7 6.8
0.4
1.8
1.9 $1M to $5M 0.1
0.2
0.1 2.7 3.0
13.5 3.5 6.9 9.1 3.9 0.2
4.8 13.2 $5M to $10M
17 9 1.8
0.7 2.5
5.0 10.2
0.7
$10M to $20M
1.3
0.7
0.3
2.5 3.7 19.5 2.4 0.1
26 94.8 10.7 $20M to $50M 30.4 0.3 0.8
0.4 15.1
70 8.5 0.9
1.1
> $50M 0.4
0.5
4 59 2.5 1.6 14.7
1.6
0.9 0.2 0.6
0.1
29 12 94.8 13.8
4 126 45 100
6 36 79 Environmental Sustainability, Healthy Communities, Transit-Oriented Development
291
54
These impact themes use Walk Scores®, Bike Scores®, and/or Transit Scores® in their criteria. CCM includes investments
98
in these respective impact themes when they have a Walk, Bike, and/or Transit Scores® above 70.
5
National / Multiple States: 149.81 What is a Walk Score®, Transit Score®, and Bike Score®?14
Walk Score Transit Score Bike Score
Walk Score’s mission is to promote walkable Transit Score is a patented measure of how Bike Score measures whether a location is good for biking on a
Affordable Rental Housing Units by State neighborhoods. well a location is served by public transit on scale from 0 to 100 based on four equally weighted components:
Walkable neighborhoods are one of
a scale from 0 to 100.
• Bike lanes • Destinations and road connectivity
1,108 124
the simplest and best solutions for the
environment, overall health, and the
The Transit Score algorithm calculates a
score for a specific point by summing the • Hills • Bike commuting mode share
260 economy. relative "usefulness" of nearby routes. The goal with Bike Score is to provide an easy way to evaluate
bikeability at a specific location.
Walk Score wants to make it easy for people Usefulness is defined as the distance to the
50 249 to evaluate walkability and transportation nearest stop on the route, the frequency of Bike Score can be used by people looking for a bikeable place to
247
16,137 < 100 when choosing where to live. the route, and the type of route. live or by urban planners looking to do research on bikeability.
94 22,958 3,371
84
2,868
240 100 to 250 90–100 Walker's Paradise 90–100 Rider's Paradise 90–100 Biker's Paradise
4,752 Daily errands do not require a car World-class public transportation Daily errands can be accomplished on a bike
337 1,598 1,724 546 3,417 2,615
250 to 500
722 204 141
734 1,071 70–89 Very Walkable 70–89 Excellent Transit 70–89 Very Bikeable
731 344 1,170 500 to 1,000
Most errands can be accomplished Transit is convenient for most trips Biking is convenient for most trips
13,084 1,829 996 1,000 to 5,000 on foot
889 50–69 Somewhat Walkable 50–69 Good Transit 50–69 Bikeable
813 70
750 > 5,000
Some errands can be accomplished Many nearby public transportation Some bike infrastructure
400 301 2,159 on foot options
4,364
1,122 25–49 Car-Dependent 25–49 Some Transit 0–49 Somewhat Bikeable
123 Most errands require a car A few nearby public transportation Most errands require a car
2,610 options
0–24 Car-Dependent 0–24 Minimal Transit
163 Almost all errands require a car It is possbile to get on a bus
National / Multiple States: 149.81
22 2021 IMPACT REPORT 232021 Investment Impact Impact Stories
Equities Impact Classification as of 12/31/2021 Impact Stories
To obtain an impact invest-
Our impact and ESG criteria for equities includes four The best way to share the positive impacts from our investments is through impact ment example tailored to a
Strong Positive Impact 26.1%
categories: Strong Positive Impact, Moderate Positive stories. The stories provide details as to how each investment is having multiple
particular geography, impact
Moderate Positive Impact 17.0% theme, or initiative, please
Impact, Neutral Impact, and Negative Impact. societal benefits. email info@ccminvests.com.
Neutral Impact 56.9%
Impact Themes Affordable Health and Rehabilitation 16.9%
Fixed Income
as of 12/31/2021
Affordable Housing 1.4%
ABS
Impact Themes This Investment Helped Support:
Securities designated Arts, Culture, and the Creative Economy 0.0%
GoodLeap Sustainable
Disaster Recovery, Resilience, and
Strong Positive Impact 1.7%
Remediation Home Solutions Trust Environmental Sustainability
and Moderate Positive Economic Inclusion 2.1%
Impact align with one or Education and Childcare 10.1% GoodLeap, LLC (f/k/a LoanPal)
more of our 18 impact Enterprise Development and Jobs 2.6% is a financial technology The largest percentage of
loans was made to borrowers Texas 23.47% Utah 2.11%
themes: Environmental Sustainability 41.4% platform that originates
Gender Lens 0.7% loans to finance sustainable
in the following states: Florida 13.82% Pennsylvania 1.98%
Healthy Communities 3.6% home improvements by Arizona 11.06% South Carolina 1.91%
Human Empowerment 3.4%
residential consumers. California 9.22% Georgia 1.34%
Minority Advancement 0.7%
GoodLeap is committed to Nevada 6.22% Michigan 1.20%
Neighborhood Revitalization 0.0%
delivering a simple, tech-
Colorado 5.07% Oregon 1.16%
Poverty Alleviation 0.4%
enabled lending experience
Rural Community Development 0.0% Virginia 4.07% Ohio 1.11%
with instant approvals at the
Seniors and the Disabled 0.0%
point of sale for people who North Carolina 3.82% Maryland 1.10%
Sustainable Agriculture 15.0%
want to install solar energy New Mexico 2.47% Idaho 1.01%
Transit-Oriented Development 0.0%
systems and other sustainable
improvements for their homes.
2021 Impact by Initiative
The notes are backed by a pool of 9,333 sustainable home improvement loans
Investments customized by initiative can target one or both of our 2020 programs: COVID-19 Relief or Minority CARES.
totaling approximately $369 million. GoodLeap originated the loans. Borrowers
COVID-19 Relief: In May 2020, CCM launched a $100 million initiative to invest in securities used the loans to finance the purchase and installation of sustainable
financing COVID-19 relief. Underserved communities and individuals were hard hit by home improvements, including solar energy systems and energy efficiency
the pandemic, and it spotlighted preexisting financial and economic disparities faced by improvements. Because the sustainable home improvement loans finance
low-income communities, particularly communities of color. The initiative provides capital systems with clear environmental benefits, GoodLeap believes that the notes
to LMI communities and families in addition to economic recovery programs and small qualify as Green Bonds under the Green Bond Principles (GBP) issued by the
businesses. We have invested approximately $120 million in cumulative investment impact International Capital Market Association (ICMA)
from its inception through December 31, 2021, on behalf of clients, and this includes in 2018. The GBP requires that projects funded GoodLeap has 1,003 employees as of May 1, 2021. Its mission is
approximately $47 million in impact in 2021 investments. by proceeds from Green Bonds must provide to make a positive impact on the planet, build lasting relationships
clear environmental benefits. The GBP recognizes with its valued partners and customers, and deliver a tech-enabled
Minority CARES: In June 2020, in response to strong client interest in making investments lending experience that is simple, fast, and frictionless. It seeks to
five high level environmental objects for Green
that focus on solutions to racial inequality, CCM launched Minority CARES, a blend of eight of help people who dream of living a more sustainable lifestyle and
Projects: climate change mitigation, climate
CCM’s 18 existing impact themes. Minority CARES amplifies and expands upon our existing want to save money using modern technology. The company’s
change adaptation, natural resource conservation,
investing philosophies where investors can positively impact empowerment for minority core product offering finances the installation of residential solar
biodiversity conservation, and pollution prevention energy systems and was expanded in 2021 to finance other
individuals, businesses, and communities and help provide an avenue to economic justice. We
and control and includes renewable energy sustainable home improvements, including smart home devices,
have invested approximately $1.1 billion in cumulative investment impact from its inception
(including production, transmission, appliances, and modern HVAC systems, battery storage, energy efficient windows,
through December 31, 2021, on behalf of clients, and this includes approximately $800 million
products) as an eligible Green Project category. upgraded roofing, and synthetic grass turf.15
in impact in 2021 investments.
24 2021 IMPACT REPORT 25You can also read
