TMX Group confirms support for impact investing

Toronto is now home to the world’s first non-U.S.-based hub for B Corporations, or companies that use the power of business to solve social and environmental problems.

The hub will be hosted at the MaRS Discovery District as part of the Centre for Impact Investing, which officially launched yesterday. The announcement was made last night at the 2011 Social Finance Forum, where Bullfrog Power, a Canadian green energy provider, stated it will become a B Corporation as of January 1, 2012.

Certified B Corporations meet higher standards of social and environmental performance, transparency and accountability. In just over three years, there are more than 425 Certified B Corporations from over 50 industries, representing $2 billion in collective revenues and $6.5 billion in capital under management.

John Doyle, director of corporate strategy for TMX Group, was also present to confirm the group will be a founding partner for the Centre for Impact Investing. TMX Group has been working in conjunction with partners such as Torys LLP, the Ontario Government and MaRS to launch the Social Venture Exchange (SVX), a market connecting social ventures, impact funds, and impact investors in order to catalyze new debt and equity investment capital for local ventures that have demonstrable social and/or environmental impact, including nonprofits, co-operatives, and for-profit corporations.

Attendees also heard from Anthony Bugg-Levine, co-author of Impact Investing. Among other systemic changes, he called for wealth advisors to start learning about clients’ social values and concerns, and to point them toward impact investments as an asset class.

In 2011, Canada saw $284 million in new impact investment.

Melissa Shin

Melissa is the editorial director of Advisor.ca and leads Newcom Media Inc.’s group of financial publications. She has been with the team since 2011 and been recognized by PMAC and CFA Society Toronto for her reporting. Reach her at mshin@newcom.ca. You may also call or text 416-847-8038 to provide a confidential tip.