2023 Boston Massachusetts  

BENEFIT/SUSTAINABILITY REPORT

Social(k)

By its Benefit Officer Sue Thomas

Mission & Introduction

Social(k) brings Environmental, Social and Governance (ESG) screened investment options to retirement plans. Our mission is to provide people the option of investing their money in conscionable companies prioritizing social and environmental responsibility alongside continued profit growth.  

In the past decade, we’ve overseen over $300 million on behalf of 7500 people working for over 400 organizations. Clients include many of the organizations we belong to, such as: B Corp, US Social Investment Forum, Green America, American Sustainable Business Council, 1% For the Planet, and RSF Social Finance.

Here are a few noteworthy updates on Social(k) over the last year: 

1. Rob Thomas, President, was appointed to the 401(k) Advisory Committee at As You Sow in 2021. The goal was to create a report card showing grades for investments in 401(k) plans of Fortune 500 companies. Specifically they looked at companies with public statements of positive sustainable corporate behavior. They were able to show most plans of this size offer only traditional funds, mostly indexes with no ESG screens applied. As a result of highlighting the investment of billions of dollars into fossil fuels, private prison operators, polluters, slash and burn corporate farms and other public companies not working toward more responsible corporate behavior, can now be challenged by the participants. As You Sow began dialogues with Google and Microsoft employees about rollover opportunities while employed. Moving assets to ESG screened funds not available in their ERISA plans. From that committee came an invite to be on an advisory position for Sphere 500 Climate Fund, a mutual fund, which was accepted. Sphere is working with As You Sow to create a Rollover Day to move funds from plans with ESG options to accounts with those options. 

2. One of the record keepers we work with, Retirement Plan Consultants, has finished and submitted all documentation needed to become a certified B corporation by B Lab. This was done because of their relationship and influence from Social(k). 

3. We continued to work closely with Natixis and their ESG screened Target Date suite of funds for plans. We also work with Sphere 500 Climate Fund. A low cost S&P 500 index fund using all As You Sow screens for 7bps. Social(k) has been bringing Environmental, Social and Governance (i.e. ESG) screened investment options to retirement plans for over fifteen years. 

4. In 2022 we added 11 companies to those providing ESG options to employees through Social(k). We also completed a partnership with Amalgamated Investment Bank to handle the smaller accounts under $1,000,000. We’ve added two in early 2023 already. Amalgamated Bank chose Social(k) because of the guidance we offer plan sponsor and employees about the importance of ESG screens, as pointed out by the Dept of Labor in a recent ruling.

B Corp + Benefit Corporation Status 

Social(k) has been a Certified B Corp since its inception in February 2008 and just completed a full re-assessment in 2019. Social(k) first became a Benefit Corporation in 2021 making this our second Benefit Corp Annual report. 

How the Benefit Corporation pursued a general public benefit and the extent to which general public benefit was created during 2022

Social(k) provides a wide array of ESG screened options for organization's retirement plan benefit. To serve all stakeholders with long term benefit of investing plan assets in Environmental, Social or Governance screened funds. To operate Social(k) with attention to where and with whom we spend our money.

Social(k) Regenerative Businesses Practices 2022

A Regenerative Business is one that intentionally employs a holistic approach to foster the preservation and flourishment of the human systems and natural resources it defines as its stakeholders. At Social(k), we operate under these practices. 

Charitable Giving and Pro Bono work

Social(k) has been a member of 1% for the Planet (businesses that donate a minimum of 1% gross annual revenue to environmental NGOs since January, 2006 and donates at least one percent (1%) of its gross revenues in cash to Spikenard Bee Sanctuary, a non-profit organization. 

Total donations for 2022 were 3.7% of Social(k)’s net profit, well above our 1% for the planet commitment. ????

Waste, Paper Reduction, Recycling and Hazardous Waste

The retirement plan model, which Social(k) is based on, has always been heavily reliant on paper delivery of information. With Social(k)’s commitment to paper reduction and recycling, we have reduced paper to one statement annually. Rob Thomas, Social(k) founder, has worked with record keepers who deliver materials electronically since 2000.

We deliver 100% of our service and information electronically meaning we have substantially reduced the amount of paper we use. 

Social(k) has a strong recycling practice, meaning that any additional office paper used, is disposed of through our municipal recycling program. 

Due to the fact that our waste is so little, we do not make any efforts to track our use. That said, we can say in confidence that we dispose of all hazardous waste responsibility. 

Water

Social(k) is committed to monitoring our water usage on an annual basis. 

Below is a chart depicting our usage annually: 

As you can see in the chart above, we experienced a large increase in water usage from 2020 to 2022 due to the fact that we started our own gardens which require daily watering. We also provide water to local farmers at the base of our property. 2020 was a partial year in location as well. 

Toxic Pollution Prevention Policy

At Social(k) we are committed to Pollution Prevention. As such, we have implemented the following policies and procedures: 

• We participate in electronics recycling for all cords, equipment and machinery that has outlived its useful life
• We recycle all batteries, light bulbs and dispose of hazardous waste properly
• We donate office equipment that has remaining life and no longer suits our needs
• We reuse or recycle office paper and ink jet cartridges
• We properly dispose of light bulbs to mitigate mercury pollution

Energy Conservation + GHG Measurements Policy

Social(k) is doing the following to help minimize our energy consumption: 

• We regularly monitor and record emissions 
• We research and purchase products that are designed for longevity
• We have energy conservation behaviors baked into our daily practices, for example:
  • we turn off lights when rooms are not in use
  • we turn off office equipment when not in use
  • We installed Smart Thermostats

Social(k) commits to monitoring energy consumption. 

Change in usage chart:

At Social(k), we are committed to sustainability and reducing our carbon footprint. As part of our efforts, we have implemented an Energy Conservation and GHG Measurements Policy that outlines our goals and strategies to reduce energy consumption and greenhouse gas emissions. Below, we will outline our progress to date based on the above chart provided.

Electricity

In 2020, our electricity usage was 1,660 kWh, and we did not have a % change in usage from the previous year. However, in 2022, our electricity usage increased to 1,849 kWh, representing an 11.4% increase from the previous year. While we did not meet our target of reducing electricity usage, we did make progress in other areas, which we will discuss below.

Propane

In 2020, our fuel usage was 235 GJ, and we did not have a % reduction in usage from the previous year. However, in 2022, our natural gas usage decreased to 162 GJ, representing a 31% reduction from the previous year. This is a significant achievement and demonstrates our commitment to reducing our carbon footprint.

Conclusion

While we did not meet our target for reducing electricity usage, we are proud of our achievement in reducing propane usage by 31%. We will continue to work towards our sustainability goals and implement strategies to reduce our carbon footprint. 

Purchasing Preferences + Suppliers

Social(k) sources its goods or services with the following preferences in mind. We choose local and minority owned and operated businesses from within our known networks. We have several existing relationships through our  B Corps, Social Venture Circle, Green America networks, etc. 

Exceptions to this exist with things like telephone suppliers as there aren’t any local or minority owned businesses offering comparable products. 

In 2020, Green America was the largest spender, accounting for 42% of the total spends, while Green Money Journal Ads, ATT Mobile, Turgeon & Associates accountant, Todd Lemieux Design, and Collective Copies made up the rest of the spending.

However, in 2022, Green Money Journal Ads became the largest spender, accounting for 38% of the total spends, while Green America, ATT Mobile, Turgeon & Associates accountant, Todd Lemieux Design, and Collective Copies made up the remaining spending. Green America's spending dropped significantly from 42% in 2020 to 19% in 2022. Additionally, Todd Lemieux Design and Collective Copies also had reduced spending percentages in 2022.

Below is a chart that depicts our spending relative to our policy to choose local and minority owned and operated businesses from within our known networks:

Name of Benefit Director

Susan Thomas is Social(k)’s Benefit Director. 

Benefit Director Statement 

Overall, Social(k) met its general public benefit purpose last year and Rob Thomas  complied with his duty to consider the impact of his decisions on Social(k)’s stakeholders. 

Compensation Statement

Rob Thomas was compensated $113,000 in 2022. 

The process and rationale for selecting the third-party standard used to prepare this benefit report.

Social(k) selected B Lab’s B Impact Assessment as the third-party standard used to prepare this benefit report because it is the most comprehensive evaluation tool of an enterprise’s environmental and social performance. 

Statement of connection between the organization that established the third-party standard in this benefit report and the benefit corporation. 

B Lab is the non-profit that administers the B Impact Assessment Survey which Social(k) uses as its third-party standard. Businesses that score 80/200 on the BIA are eligible to become Certified B Corps, which Social(k) has been since February 2008. Social(k) pays dues to B Lab for that certification in the amount of $2000 annually and recertifies every three years. 

Transparency and Shortcomings

Social(k) had the following shortcomings in 2022:

Due to fluctuations in the economy, a recent residential and home office move and the Covid-19 pandemic, Social(k) was not in a meet all of our reduction goals: 

With regards to our water usage, we have seen a 300% increase in usage from previously. This is because we started our own gardens which require daily watering. We provide water to local farmers, as needed, from our property. 

With regards to our energy usage, there is also an increase in usage. However, we see this as moving us towards becoming more energy efficient because we have diverted our energy source away from oil to propane. Propane is considered to be a green fuel, while natural gas is not.

Conclusion 

Fluctuations in the economy, a recent residential and home office move, and the Covid-19 pandemic had Social(k) undergoing some shortfalls with regards to its energy, waste and water goals. 

That being said, we are committed to measuring and monitoring our impact and as is demonstrated in this Impact Report will continue to do so year after year. This commitment has helped us track our progress and identify areas where we need to improve. This report is an honest look at how we are doing. We will continue to monitor and measure our impact and make changes where necessary to achieve our sustainability goals in the future.

Learn more about ESG from these articles

https://socialk.com/learn/

https://socialk.com/about/

https://socialk.com/blog/talent-wins-every-time-2/