Clarity is a Enterprise SaaS tool for Asset managers, that visualizes and optimizes the Social Impact of their investment portfolios.
Asset Managers and Financial Institutions connect to our cloud-based SaaS tool, which provides various modules (“pay per use”). The core of our tool is the Social Impact Data, not just ESG or CSR info (how companies perform their activity), but most importantly the need covered by companies per $ invested. Data is estimated using big data and machine learning algorithms.
How it works
Example for Asset Managers (eg. BlackRock, private banks):
Asset manager sends a request with variables like risk, return, liquidity and social impact (through a very simple UX). They get specific suggestions on how to improve that performance and a very clear reporting for them and the end customer.
Asset manager can also send a request with portfolio information (through API) and get a report with portfolio performance on Social Impact and specific suggestions on how to improve that performance plus clear reporting.
Clarity also gives the possibility to offer the automated tool directly to end customers, including end-to-end digital engagement technology (tracking on how customers use reporting and request changes to portfolio accordingly).
Example for Retail Banks (eg. Bank of America, Wells Fargo) and Independent advisors (more than 30,000 only in the USA):
Sarah goes to Santander bank branch to get his money invested ($50k). She asks advisor at the branch (John). John (the Santander advisor) or Sarah directly connects to Clarity tool, inputs risk, return, liquidity expectations, and social/ impact interests and values. Clarity tool provides suggestions on investment opportunities. Sarah decides to invest and starts getting very user friendly and transparent reports on her mobile/web, including an “impact report”: where is her money invested, which needs is the money covering and for which demographics, etc.
Social Impact Methodology
Our vision and approach to the problem is to develop a universal framework and an automated tool that we can readily apply to rate companies, projects, governments and NGOs based on:
- Effectiveness – The most innovative part of our methodology and the biggest challenge: defined as what are the needs that the organizations/companies are covering per $ invested, on the basis of the information we have about the targeted population and their prioritization of needs.
- For example, is it more “socially effective” per dollar to invest in a company building a well and providing water to an African village or in a company providing clothing to US population? At a high level, we would look at the number of people reached, the need for the product, and the investment or resources dedicated to it. The company setting up a well has, with relatively small investment, an impact on an entire village for a primary necessity that was previously uncovered. By contrast, a clothing company in the US will have a smaller effectiveness, since it tackles fewer people and a lesser necessity, and likely has an even smaller per dollar impact if it has high operating costs of distribution or marketing for continuous operation, as compared to the company building the well.
- Efficiency at running operations– Efficient use of the resources dedicated to their goal, such as cash flows or investments (i.e. 2 schools might have the same “social effectiveness” in dimension 1 because they cover similar need, target similar population, etc and use similar investment; but rate very differently in operational efficiency or quality of education provided)
- Corporate Social Responsibility / Compliance, accountability and transparency– Assessment of “must-haves” of an ethical organization: reporting requirements, compliance with law, health, safety and labor standards, etc.
The primary outcome of our tool will be a global social impact rating (i.e. AAA, AA, etc) for each dimension (effectiveness, efficiency and compliance/ accountability) and aggregated. That rating will allow comparing social impact created by for profit or non-profit companies across different sectors, since methodology and rating will be Universal: i.e. Coca Cola’s rating can be compared to Walmart’s, to its direct competitor Pepsi, and also to any NGOs, since the rating reflects absolute social impact per dollar invested.