Narain, Saurabh and Steven Lydenberg. "Impact of Community Development Banks and Social Performance Metrics." Panel discussion, Value of Values conference, Santa Clara University, May 14, 2010.

(Rough notes by Lloyd Kurtz, I apologize for inaccuracies or errors of emphasis. - lk)

Narain's slides here
.


Narain showed the extensive database he uses to evaluate CDBIs (Community Development Banking Institutions). He looks for banks “operating in the most vulnerable sections of society.” Of that group, he says, “I’m concerned about [the finances of] 1 or 2 of 20 institutions. He noted that as investors get bigger and more sophisticated, “they have a greater right to demand [impact] information.”

Lydenberg introduced fresh work he is doing on asset classes. A major point: asset classes evolved for social reasons, to serve social needs. They have, he said, “different social functions.” He called for greater social disclosure globally, and said there is an “intuitive understanding that without it investors will have a hard time aligning portfolios with values.” Moreover, he warned, “too much time has been spent trying to measure social impact at the portfolio level, and not enough at the market level.”