LOS ANGELES--(BUSINESS WIRE)--The Los Angeles Cleantech Incubator (LACI), a global leader in empowering entrepreneurs to commercialize clean and sustainable technologies, today announced the release of Just Impact, a new report designed to measure the Environmental, Social, and Economic Impact of early stage companies.
As California takes a stand in supporting low-carbon technologies, environmental protection and clean energy development, LACI is releasing data-driven measurements of early stage cleantech innovation from its portfolio of 40+ companies. The Just Impact framework purposefully connects companies in the LACI portfolio to the broader trends accounting for environmental, social and economic impact that are now being valued in Venture Philanthropy, Social Entrepreneurship, Impact Investing, Corporate Social Responsibility, NGOs and government, both domestically and globally.
"Measurement of social and environmental impact beyond financial metrics provides investors with a broader understanding of the true risks, costs and opportunities involved, thus enabling more informed investment decisions," states UBS Managing Director, Andrew Lee, Head of Impact Investing.
The framework of this newly released report is expected to grow and evolve through invited collaboration with experts in the field, with a focus on social impact investment and philanthropy. LACI is seeking committed partners to help build comprehensive monitoring of businesses in world markets. Triple bottom line measurements included in the inaugural report feature 2015-2016 comparative results of performance for LACI reporting companies, including:
- A 95% increase in full-time equivalent jobs and a breakdown of jobs by sector
- Female Employment – Up 117%
- Minority/Previously Excluded Employment – Up 195%
- Cumulative Total Funding – Up 64%
“Even most of Wall Street now admits greed is not good,” said Neal Anderson, LACI Co-Founder and Chief Operating Officer. “The question the markets and we are asking is, how are we doing well for ourselves, not just at the expense of people and the planet, but also in service of our collective environmental and social goals? It’s not too much to make money, create good jobs, embrace diversity, use resources sustainably and efficiently, and benefit the communities where we operate. It’s essential.”
As an organization, LACI has taken a holistic approach to building a green economy, with comprehensive, long-term programs that engage a wide and diverse range of stakeholders regionally, nationally and globally. Cleantech is much more than just a leading economic driver, it is a catalyst for societal change and environmental stewardship.
Environmental measurements reported for LACI companies in the 2015-2016 comparison, include:
- GHG Reduction in (lbs.) – Up 77% (Reducing 249,854,023 lbs. of GHG, the equivalent of removing 13,034 cars from our nation’s roads for one year).
- kWh Generation – Up 218% (94,975,250 kWh of electricity, enough to power 9,328 homes for one year).
- Water Savings – Up 589% (23,426,750 gallons of water savings, enough to fill 35 Olympic-sized swimming pools).
- Non-Hazardous Waste Avoided – Up 45% (Avoiding 1,245,326 lbs. of non-hazardous waste, equivalent to taking 60 garbage trucks off the road for a year).
The LACI Just Impact framework utilizes IRIS Metrics, created by the Global Impact Investing Network (GIIN), a library of common metrics used for impact reporting. Last year, LACI began a process to tailor data collection beyond financial reporting in order to meet the growing needs of market participants and stakeholders. The financial incentive is significant for companies aligning their missions with the values of customers and communities. Additionally, impact monitoring provides a screening tool for investors to locate opportunities to allocate capital towards positive change.
“We see this impact reporting evolving to mirror that of today’s financial reporting,” said LACI Investment Director, Tony Morberg. “Reporting on concrete social and environmental performance data, alongside financial data, allows market participants to fully understand the value our companies can bring to an investment.”
LACI invites collaboration and input on the evolution of impact reporting for global markets. Please contact JustImpact@LACI.org to help grow this framework for a sustainable and equitable future.
The Los Angeles Cleantech Incubator (LACI) is a private non-profit organization helping to accelerate the commercialization of clean technologies by offering flexible office space, CEO coaching, mentoring, and access to a robust network of partnerships and capital. LACI was founded in 2011 as a cluster-driven economic development initiative supported by the City of Los Angeles, the Los Angeles Department of Water & Power and the Community Redevelopment Agency of Los Angeles. Recognized as one of the most innovative business incubators in the world by UBI, LACI identifies local entrepreneurs across multiple cleantech business sectors and guides them to market, creating jobs that advance LA’s green economy. In just five years, LACI has helped 67 companies raise $135M in funding, created 1,500 jobs, and delivered more than $335M in long term economic value for the City of Los Angeles. LACI operates out of the La Kretz Innovation Campus with satellite offices in Northridge, CA and Silicon Valley and is founder of the Network for Global Innovation (NGIN). For additional information, please visit: LACI.org.