Responsible Investing Impact

For greater impact, we’re using more of our assets for good

To achieve higher impact and returns more responsibly, Toronto Foundation invests within a spectrum of impact-first to traditional options. Further, we’ve diversified beyond public markets to include more equity within private markets and to invest more responsibly overall*. First read our 2024 Investment Impact Report outlining key outcomes for our assets as well as those we administer for others. Then read about the evolution of our impact investing strategy including how we increasingly use our assets for good across an impact continuum.

INVESTMENT IMPACT SNAPSHOT

Less than 4% exposure to non-renewable energy and utility companies.

Less than 1% exposure to alcohol, tobacco and firearms (ATFs)

57% invested with fund managers that are signatories of the UN principles for responsible investment or have ESG policies

*The transition from a traditional portfolio to one invested responsibly typically spans several years. Because certain investments have been locked in for extended periods, it takes time to divest.

Investment-Focused Impact Report 2024

PLANET

Planet Portfolio Investment Spotlight

Wyvern

Generate Upcycle

Clean Bus Solution

InvestEco

Efficiency Capital

PLANET

Planet Portfolio Investment Spotlight

Wyvern

Generate Upcycle

Clean Bus Solution

InvestEco

Efficiency Capital

Toronto Foundation’s public portfolio vs. international benchmark:*

*MSCI All Country World Index (ACWI)

Toronto Foundation’s public portfolio vs. international benchmark:*

*MSCI All Country World Index (ACWI)

PEOPLE

People Portfolio Investment Spotlight

BenchSci

TAS

Spare

Windmill Microlending

Canadian Canoe Museum

PEOPLE

People Portfolio Investment Spotlight

BenchSci

TAS

Spare

Windmill Microlending

Canadian Canoe Museum

OUR IMPACT EVOLUTION

How we got here and why

For years we’ve used an action-oriented and equity-focused research agenda. That informs donor and community engagement designed to disrupt traditional philanthropic practices, including flowing more money to smaller, local and equity-focused organizations. When only 15% of our funds are endowed, our collective impact through fundholder granting matters that much more.

Equity is the central pillar of our discretionary granting. Over the last four years, we’ve disbursed an average of 14.5%, well above the 5% minimum. But more and more we’re looking to integrate impact across all that we do.

Equity is the cental pillar of our discretionary granting

From Granting to Investing and Leveraging the Capital in Between

In 2017 we created a standalone social impact investing pool for groups that needed more money than we could grant and where there was an opportunity to repurpose capital from one social purpose venture to the next.

Then we hired internationally renowned Outsourced Chief Investment Officer, RockCreek Canada, to re-imagine our broader investing strategy for more aggressive, yet responsible, financial returns. What started with a finance-first agenda with our establishment in 1981, started evolving in 2021 to match our equity-driven vision that bold financial and social yields can be achieved in tandem.

As we annually increase the percentage of our assets responsibly invested to our goal of 70%, we can confirm that our full portfolio already adheres to the principle of doing no harm.

Impact Continuum