IMPACT INVESTING 2021/Q3 2021/Q3 - Page 7

Issues have been outlined in academic work for years, but until fairly recently, it was difficult to measure their impact on key fundamentals. Quantitative research has been able to show not only that “quality” culture can be measured, but how it might affect future profitability.


Corporate cultures in which employees mention innovation have tended to be more profitable (higher ROA) and retain workers (lower turnover).

Human Capital-Related


Gender Diversity Index ETF

Market-cap-weighted index of US large-cap companies with a relatively

high proportion of women in executive and director positions SP50:

S&P 500

Gender & Diversity: Is the market paying a premium for gender diversity?

Source: FactSet, Jeffries Research

Innovation correlates to higher Retun on Assets

Higher Innovation correlates to lower employee turnover