{"id":37276,"date":"2023-03-27T19:24:25","date_gmt":"2023-03-27T23:24:25","guid":{"rendered":"https:\/\/test.greenmoney.com\/2025\/?p=37276"},"modified":"2023-04-27T21:45:46","modified_gmt":"2023-04-28T01:45:46","slug":"2023-cdfi-sustainable-investing-trends","status":"publish","type":"post","link":"https:\/\/test.greenmoney.com\/2025\/2023-cdfi-sustainable-investing-trends\/","title":{"rendered":"2023 CDFI Sustainable Investing Trends"},"content":{"rendered":"
>> Back to April 2023 Issue<\/a><\/div>\n
Above: Self-Help Credit Union staff in its Wilmington, NC branch<\/strong>. Self-Help has over 20 branches across North Carolina and more than 70 branches total across North Carolina, South Carolina, Florida, Virginia, California, Washington, Wisconsin and Illinois.<\/span><\/h5>\n

\"KeishaSustainable investing has gained momentum over the past decade with both financial professionals and casual investors, and in 2023 it\u2019s more relevant than ever. Growing social, economic, and environmental concerns have fueled an increase in socially responsible investments as more people realize the positive impact their investments can make.\u00a0<\/span><\/p>\n

CDFIs (Community Development Financial Institutions) are critical players in sustainable investing, leveraging specialized knowledge and resources to create innovative financial products with a positive social return. As we look ahead to the rest of 2023 and beyond, these key CDFI investing trends are likely to play a crucial role in the sustainable investing movement.<\/span><\/p>\n

Investing in Gender Equity<\/span><\/h2>\n

CDFIs are increasingly emphasizing women-led projects, helping to counter the substantial barriers that female entrepreneurs still face. According to research from the Kaufman Foundation and the PitchBook-NVCA Venture Monitor, women make up 40% of founders, yet received only 2% of total venture capital allocations in 2022. Additional collective research by ICA and CNote has found noteworthy challenges for women, particularly women of color. Although women entrepreneurs are approved for lower loan amounts with higher interest rates, the probability of them defaulting on loans is 2 to 4.5% lower than that of men founders.\u00a0<\/span><\/p>\n

CDFIs are leading the charge to change these inequities. CNote developed the <\/span>Wisdom Fund<\/span><\/a>, an innovative investment product that enables individuals and institutions to invest in the future of women of color. The <\/span>Wisdom Fund is deployed by CDFI partners as affordably priced loan capital targeting women small business owners, specifically women of color. Self-Help Credit Union also offers investors a <\/span>Women & Children Term Certificate<\/span><\/a>, a term certificate focused on supporting childcare businesses founded by women. <\/span>Investors are realizing how much power their investments can wield for good, and more people are choosing investment products that help expand opportunities for women.<\/span><\/p>\n

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Staff celebrate the opening of a Self-Help Federal Credit Union branch in Oak Park, Illinois. The branch will serve the Oak Park community with loans, deposit accounts, financial coaching, community meeting and event space, and more.<\/em><\/figcaption><\/figure>\n

Measuring Impact Beyond Standard Outputs<\/span><\/h2>\n

To ensure that investments are truly having an effect, investors must be able to measure their progress and success over time. Investors and CDFIs are focusing on tracking meaningful metrics like job creation within communities, or improved access to credit for small businesses run by women or people of color. Through data-driven frameworks and tools, investors can ensure that their investments are not just providing solid financial returns, but also doing good in the world.<\/span><\/p>\n

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