Climate Change Data

Arctaris Impact Investors, LLC

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Diversity, Equity, Inclusion, and Belonging
  • Economic Impact
  • Environmental Impact
  • Social Impact

Environmental Achievements

  • 51.3 megawatts of solar capacity installed
  • 270 acres of solar infrastructure installed
  • Two brownfield sites remediated
  • 82% of operating companies in our portfolio have sustainability measures that reduce energy usage
  • 82% of operating companies in our portfolio have sustainability measures that reduce waste

Social Achievements

  • Launched Arctaris-Connecticut Program to invest in community development projects in Hartford’s urban core, with emphasis on diversity, equity, and inclusion (DEI) and community revitalization
  • Invested in partnership with Great Works Internet to construct broadband fiber networks for five communities in Maine
  • Funded fiber broadband networks for three counties in Colorado in partnership with Clearnetworx
  • Helped a minority executive purchase Cleveland-based Specialized Construction Inc., creating one of the only minority-led asphalt paving companies in the country
  • Funded mixed-use development in Gowanus, Brooklyn providing high-quality, affordable housing
  • Completed investment to build affordable senior housing in Baltimore
  • Investment in Erie Downtown Development Corporation project creating housing and retail space

Governance Achievements

  • Established a 10-member Advisory Board to ensure that Arctaris deploys its NMTC allocation to the most impactful projects with a focus on DEIB mandates. Eight members of our 10-person CDE board are women or minorities

Climate Goals & Targets

Medium-term Goals:
  • Engage more closely with key internal and external stakeholders to improve our impact measurement and management strategy and to attract mission-aligned investors, talent, and collaborators.
Short-term Goals:
  • Establish more detailed impact targets, impact risk considerations, and impact additionality road maps for all new investments and existing portfolio companies.
  • Continue to simplify the impact data collection process, while offering more operational insights to portfolio companies that participate in the impact data collection process.

Environmental Challenges

  • High employee turnover in home care (65%)
  • Housing shortage in Grand Junction, Colorado
  • Lack of broadband access in underserved communities
  • Lack of affordable housing in Gowanus, Brooklyn
  • Wealth inequality and racial segregation in Washington, D.C.
  • Food insecurity in Huntsville, Alabama and Erie, Pennsylvania
  • Economic distress in Rangeley, Maine
Mitigation Strategies
  • S&K Holdings offers Upward Mobility program for employees
  • The Eddy project in Grand Junction provides 96 units of workforce housing
  • Arctaris Broadband Company invests in fiber optic infrastructure
  • 300 Nevins Street development in Gowanus provides 164 affordable housing units
  • Northeast Heights development in Washington, D.C. creates jobs and increases foot traffic
  • Front Row development in Huntsville includes a grocery store
  • Flagship Complex in Erie includes a grocery store and affordable housing units
  • Saddleback Mountain investment created jobs and revitalized the local economy

Supply Chain Management

Responsible Procurement
  • Prioritizing minority- and women-owned businesses as subcontractors and tenants

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

UN Sustainable Development Goals

  • SDG 1: No Poverty
  • SDG 8: Decent Work and Economic Growth
  • SDG 10: Reduced Inequalities

Arctaris benchmarks investments against the U.N. Sustainable Development Goals (SDGs) to communicate impact in a universal language.

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Diversity, Equity, Inclusion, and Belonging (DEIB)
  • Environmental, Social, and Governance (ESG)
  • Community Development
  • Economic Development
  • Environmental Sustainability

Environmental Achievements

  • 305 acres of solar infrastructure installed (+13% from 2022)
  • 58.3 megawatts of solar capacity installed (+13% from 2022)
  • 100% of operating companies have specific programs to reduce energy usage
  • 70% of operating companies actively sourcing sustainable materials
  • 20% of operating companies actively using solar solutions

Social Achievements

  • 2,169 total jobs in the Arctaris portfolio (+8% from 2022)
  • 39% of portfolio companies are, or are eligible to be, Minority-Owned Business Enterprises (MBEs)
  • 33% of portfolio companies provide special hiring programs for people who reside in the same neighborhood
  • 11% of companies in the Arctaris portfolio are veteran owned
  • 40% of portfolio companies provide special hiring programs for women, people of color, and immigrants
  • 1,710 multifamily residential units completed, under construction, or planned
  • 549 housing units planned or offered at 120% or below area median income (AMI)
  • 4,701 estimated number of homes and businesses with access to the Arctaris Broadband Company-funded broadband networks (+292% from 2022)

Governance Achievements

  • Independent validation of impact measurement and reporting by the Initiative for a Competitive Inner City (ICIC)
  • Impact Notes Upgrade from BBB to BBB+

Climate Goals & Targets

Long-term Goals:
  • Conduct strategic refresh of the Arctaris impact approach
Medium-term Goals:
  • Create an Arctaris Community Development Finance Institution (CDFI)
Short-term Goals:
  • Launch at least three new place-based programs across the country
  • Deploy remainder of New Markets Tax Credit (NMTC) allocation

Environmental Challenges

  • Rising interest rates and costs exacerbating the country’s housing crisis
  • Unclear outlook for underserved communities due to various economic and political shifts
  • Backlash against DEI and ESG
  • Challenges faced by Chime Solutions, including turnover, declining revenue, and liquidity issues
Mitigation Strategies
  • Remaining committed to investing in new and affordable housing projects
  • Providing capital “where the federal money doesn’t reach” through programs like broadband initiatives
  • Continuing investments in low-income communities with market-based solutions
  • First-Loss Capital program to mitigate risks for investors in challenging investments like Chime Solutions

Supply Chain Management

Responsible Procurement
  • Supporting minority-owned suppliers

Climate-Related Risks & Opportunities