The Racial Equity Scorecard is a research project under the Pathway Fund, which was founded in 2022 to catalyse opportunities for Black and Minoritised communities, across England, through social investment. By providing a more thorough understanding of what racial equity means in an investment context, the scorecard aims to enable assets owners to mobilise investment capital towards racial equity. It also hopes to provide a framework to help charities, asset owners and managers collect data and insights on companies they invest in.
The research is led and conducted by EIRIS Foundation and the Social Investment Consultancy (TSIC). It is funded by The Connect Fund of the Barrow Cadbury Trust and Carnegie. Pathway Fund is a joint initiative of Voice4change England, TSIC and Black Global Trust.
Reflections from some of the project team:
“The mission of the Pathway Fund is to mainstream racial equity in the impact investing sector. A missing piece has been – how do we understand and screen for racial equity, among investments? Majority of the work of the Pathway Fund is focused on private markets, given that the bulk of Black and Minoritised-led enterprises are small and medium-sized enterprises. However, we must not ignore the important role of public markets, as big corporates can have positive – and negative impact – on this agenda. We are excited to team up with EIRIS Foundation, expert in sustainable investing, and together with two other founding partners, Voice4Change and Black Global Trust, to embark on the Racial Equity scorecard. Thanks to Barrow Cadbury Trust’s Connect Fund and Carnegie UK for supporting this work. ” – Bonnie Chiu, Co-founder of the Pathway Fund; Managing Director at The Social Investment Consultancy (TSIC)
“At EIRIS Foundation, we believe that a financial system that works for people and planet requires a deep understanding of the social and environmental impact of investments. We are thrilled to work with the Pathway Fund and TSIC on this groundbreaking project to highlight the next steps on racial equity that sustainable finance requires.” – Peter Webster, Project Team Member; CEO of EIRIS Foundation
“Our goal with the Racial Equity Scorecard is to provide a tool to asset owners and managers that will help them understand how their investments can contribute to racial equity in the UK. By creating a clear set of criteria for assessing investments through a racial equity lens, we hope to enable the social investment sector to drive change and make a meaningful impact in this area.” – Timothy Cheng, Project Team Member; Consultant at The Social Investment Consultancy (TSIC)
“We adopted a mixed research methodology, which includes both quantitative analysis and Standpoint Theory under the umbrella of Action Research. We reviewed other DEI benchmarks, analysed DEI methods and disclosures by FTSE100 companies. We also spoke with creators of several DEI benchmarks, people with lived experience of racial inequity and assets managers. This approach allows us to develop a comprehensive and nuanced understanding of racial equity in the UK investment sector.” – Rita Sebestyen, PhD, Project Team Member; Next Steps Project Manager at EIRIS Foundation
The project is ongoing and we look forward to providing you with updates in due course.