Recently, public-benefit corporations have captured the attention of those in the impact investment space. The PBC’s unique model requires companies to define a social benefit in their incorporation documents while still providing financial returns to their shareholders.
Mark Berryman, Managing Director of Impact Investing at Caprock, emphasizes the importance of dual analysis while investing in PBC.
“On one hand, investors must evaluate the financial value and performance of these stocks, as they would any equity investment,” he says. At the same time, they should evaluate the impact metrics generated by the PBC. Investors can also check a company’s sustainability score using the B Impact Assessment on B Lab’s website if the PBC is also certified as a B corporation. The assessment scores companies in five impact areas: community, customers, environment, governance and workers.
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