Katie Hoffman: Addressing critical climate consequences

This week, the TTI Interview Series covers our member Katie Hoffman. Katie Hoffman is an entrepreneur and investor with over a decade of experience scaling climate positive companies. She has helped spearhead investor coalitions representing $15T+ in assets under management dedicated to lower carbon development. Her work with the United Nations, NEXUS Global, and the state of California helped bring ESG and climate finance into mainstream policy and practice. She is currently a partner at Regeneration.VC, investing in high growth opportunities that address waste, pollution and climate change in consumer markets.

In this interview, Katie highlights the significance of integrating impact into all stages of ESG. As the planet nears the projected temperature increase and the climate continues to become more unpredictable - our ability to coordinate, collaborate and communicate is what will save us from the impending consequences of global warming.

Scaling positive impact

Katie, tell us a about your work and how it intersects with the impact space.

I am an investor and entrepreneur focused on scaling climate positive businesses, policies and projects. Our fund invests in companies eliminating waste and pollution in consumer markets like apparel, CPG, food and agriculture. We focus on circular material, technological and business model innovations in the design, use and reuse of resources. Creating a positive impact on the climate, ecosystems and communities is central to our investment strategy. Additionally, I have focused on pushing national and international policies that foster public-private partnerships to accelerate the transition to a clean, circular and just economy.

Benefits for people and the planet

What is your own definition of impact?

Everything we do has an impact. Within the context of investment and business, impact is really about how we measure economic and non-economic factors in decision making in an effort to create the greatest social and environmental benefits for people and the planet.

Climate consequences

What do you believe is one of the most important issues that need to be solved over the next 10 years?

I’ve dedicated my career to reversing climate change and building more sustainable and healthy markets that regenerate the biosphere. This is the most critical decade for action on climate, to avoid the worst consequences if we do not keep warming below 1.5C. Humanity has already contributed over 1C of warming since the industrial revolution, and the consequences of that warming are playing out today - threatening communities and species globally. As we focus on discontinuing the practices that accelerate the crisis, we must also focus on addressing the consequences that are already upon us. Building more local and global resilience is perhaps the greatest economic and social development opportunity of our lifetime.

Short term logic

What do you think are some of the biggest challenges in the impact space?

Entrenched interests that are not willing to fundamentally transform their business models have inhibited progress on climate for decades. If we keep extracting, clear cutting forests and creating waste streams that aggregate in land, ocean and the air - we will fast track our specie’s extinction. The severity of the crisis seems abstract to many, especially when short term - quarterly - logic has become central to business and investment governance. We have the technological, human and natural resources available to reverse our current trajectory. Humanity needs a shared vision for the future we want to create. This vision must be inspired by how we coordinate, collaborate and communicate. With a shift in consciousness at the highest levels of governance in finance, business and government, and moral leadership that enables streamlined action informed by science - it is possible for us to solve just about anything.

Regenerative Evaluation Gauge

Tell us more about the long-term vision you have for your work and how you measure & quantify your impact.

Our fund is on a mission to transform venture capital from an asset class that has often been extractive, to one that is regenerative. Venture is relatively small as an asset class, yet the impacts of venture capital are transformative. Backing companies at the earliest stages, and supporting them in building strong infrastructure for measuring their environmental, social and governance impact is a top priority. We support companies with scientific diligence across 20-50 metrics that span their; resource and toxics footprint, CO2e accounting, waste, water and human impacts. We have our own internal system for measurement called REG (the Regenerative Evaluation Gauge), and we work closely with groups like SASB and IRIS to ensure measurement and evaluation is aligned with globally recognized standards. Companies in our portfolio agree to work with us on measurement, disclosure and third party monitoring as they scale.

Integrating impact

What are some of the misconceptions you’ve noticed regarding what “impact” is all about?

The idea that impact is somehow separate or niche is a misconception. This misconception perpetuates the idea that “impact investing” is somehow boutique and/or concessionary. This is not the case. Bringing financial and non-financial metrics into investment analysis and business development creates competitive advantages for both investors and entrepreneurs. When scientific, social and cultural metrics are integrated into investment strategies; funders and founders have more data to inform short and long term decision-making. The more data the better!