Objective · SJ04
Concept SJ Equity + Inclusion in Capital
Create equitable economic opportunities and achieve social justice goals within communities.
2 activities
Equity + Inclusion in Capital is fundamentally rooted in the concept of creating equitable economic opportunities to achieve social justice goals within communities. This objective aligns with a growing body of research that underscores the critical role of financial inclusion and equitable investment in promoting sustainable economic development and social equity.
Research indicates that financial inclusion is essential for reducing poverty and boosting prosperity. According to the World Bank, access to financial services enables individuals and businesses to manage life’s risks, invest in opportunities, and ultimately improve their quality of life. By prioritizing equity and inclusion in capital, SEAM aims to dismantle barriers to financial investments, ensuring that marginalized communities have access to the instruments needed to generate wealth and prosperity.
“As of 2016, the average black American family had total wealth of $17,600—about one-tenth the wealth of the average white American family, which stands at $171,000xxv. This gap leaves many black families at a significant economic disadvantage, with less financial security and less ability to fully participate in the economy. Less wealth also means black Americans are underrepresented in the market for financial products and services.”102
The importance of including marginalized communities as investors is supported by research highlighting the profound impacts of financial exclusion on wealth generation and economic mobility. Financial exclusion not only perpetuates income and wealth disparities but also limits access to financial products that can drive wealth creation. “Financial inclusion is the bridge between economic opportunity and outcomes”103.
Inclusion doesn’t just benefit marginalized communities. There is a business bottom-line benefit too. By integrating marginalized communities into the investment landscape, financial institutions could unlock significant annual revenue, highlighting the economic potential of inclusion. Furthermore, addressing financial exclusion could mitigate the intergenerational consequences of wealth disparities, creating more equitable economic opportunities and enhancing overall market resilience.
Activities
- SJa4.1
Achieve equity and inclusion in securing equity capital and investors
ImpactThe Owner shall set and implement inclusive equity capital principles, defined in Requirements, to promote ownership and investment in commercial real estate by historically underrepresented groups, including but not limited to people of color, women, and people from low-income backgrounds. Upon seeking capital for the project, the Owner shall integrate these principles into each stage of the process. The scope includes setting and implementing these principles but does not extend to the assessment of their effectiveness.
Note: If projects in rating systems other than B+I: Developer and B+I: Occupier are seeking external debt or capital to fund the project, this Activity shall apply, and points can be pursued to achieve certification.
- SJa4.2
Achieve equity and inclusion in securing debt capital
ImpactThe Owner shall set and implement inclusive debt capital principles, defined in Requirements, to promote the inclusion of minoritized banking institutions (MBI), including but not limited to people of color and women, as lenders in commercial real estate projects. The scope includes setting and implementing these principles but does not extend to assessing their effectiveness.
Note: If projects in rating systems other than B+I: Developer and B+I: Occupier are seeking external debt or capital to fund the project, this Activity shall apply, and points can be pursued to achieve certification.