HIP Investor - Fossil Free, Impact and ESG: US Retirement Plans, including 401(k) and 403(b)
Data category
- Environmental data
- Governance data
- Indices/Exchange data
- Rankings
- Ratings
- Research data
- Social data
The data offers solutions for:
- Carbon footprinting
- Climate scenario analysis
- Controversies
- Environmental impact analysis and insight
- Fund ratings
- Geospatial/location data
- Investment decisions and portfolio insight
- Lobbying
- Nature-based information
- Nature-based information: Water
- Norms-based screening
- Physical risk
- Reporting: CSRD
- Reporting: EU Regulations
- Reporting: ISSB standards
- Reporting: Impact
- Reporting: Other Regulations
- Reporting: SEC climate
- Reporting: SFDR
- Reporting: TCFD
- Reporting: TNFD
- Reporting: UN SDGs
- Social impact analysis and insight
- Supply chains
- Temperature alignment
- Transition plan assessments
- Transition risk
- Value at risk
Who are the data users?
- Corporates
- Financial institutions
- Government
- Investors
- Trustees
What asset class does the data cover?
- Commodities
- Credit/loans
- Fixed income
- Forestry
- Listed equity
- Real assets
- Real estate
Brief description of the data offering
- RATINGS of your 401(k) Fund Choices on Impact, as well as Returns and Fees
- PORTFOLIOS that are higher impact, like Fossil-Fuel-Free Diversified allocations
- TOOLS to optimise the impact of your 401(k) fund choices
- EDUCATION: For participants on the overall impact of current plan offerings, and engage employees to pursue a more positive impact at work.
We Provide 401(k) Participants, Plan Sponsors & Providers with Sustainability Ratings
Developed in 2006, HIP Investor’s unique methodology rates and ranks all types of investments for future risk, return potential and net impact on society. HIP’s quantitative analysis of fundamentals systematically identifies the drivers of 90% of market value not typically found on the balance sheet. HIP Ratings are a useful tool for investors to fund human, social and environmental solutions — while seeking optimal risk-adjusted returns.
HIP Impact Ratings score and rank investments on a 0 to 100 spectrum that captures metrics from operational outcomes, products and services, and management practices. Higher HIP Ratings have correlated with higher Total Shareholder Return (TSR) and lower HIP Ratings have correlated with lower— or even negative—TSR for 15,000 global equities for the 5 years ending 12/31/2025. By applying HIP’s quantitative fundamental ESG ratings, investors are able to pursue optimal risk-adjusted returns while funding measurable human, social and environmental solutions.
Higher HIP Ratings typically link with higher 5-year Total Shareholder Return
We Analyze & Educate on 401(k) Choices
HIP Investor serves 401(k) plan sponsors to analyze the human, social and environmental impact associated with their 401(k) fund choices, and HIP educates 401(k) fiduciaries and participants. Our HIP approach follows these 5 steps:
- Calculate impact of all investment choices. Funds/ETFs are rated by underlying constituent holdings.
- Highlight the impact leaders and laggards of the plan, with suggestions for additions or drops.
- Design customized advice according to specific impact themes, such as “Fossil Free” & “Gender Equity”.
- Provide access to this Impact (ESG) analysis, along with financial portfolio reporting, on our HIP Portal.
- Support employees/participant decisions about their 401(k) investment choices.
HIP Fossil Free Allocation Portfolios
HIP Investor‘s Fossil Free allocation models for 401(k) plans allow plan participants an easy way to invest in a carbon-efficient economy. Similar to the traditional Target Risk Funds, the HIP Fossil Free Portfolios are diversified according to 5 levels of risk tolerance and time horizon, ranging from Conservative to Moderate to Aggressive. The portfolios are invested in mutual funds and ETFs that meet the following criteria:
- Zero exposure to companies that generate the majority of their revenues throughout the fossil fuel value chain, including exploration, drilling, production, and distribution.
- Higher levels of transparency and performance in Environment, Social, and Governance (ESG) factors, as defined by the funds’ HIP Ratings.
- Competitive fee structure while seeking optimal risk-adjusted returns.
HIP Fossil Free Target Risk Portfolios
HIP’S Allocation Models are available according to five levels of risk tolerance.
Engage Your Employees In A Sustainable 401(k) Plan
Your staff, especially Millennials, women, and engineers, are likely to be more satisfied when “doing good” and “being sustainable” at work. Enhancing your 401(k) plan is a path to deeper employee engagement. With HIP Ratings and HIP’s Fossil Free 401(k) Portfolios, your employees can become more excited about investing in their 401(k), can generate more employee engagement, participation, and contributions to their 401(k) plan’s fund choices – and can benefit workplace innovation too.
Higher Participation Rate
Higher Contribution Rates
Higher Employee Engagement
When your plan participants become more engaged, participation rates can reach 100% and contribution rates can increase. Employees may bring more ideas and innovation to your business, and may be more excited to invest in their future. Investors are increasingly demanding sustainable investment options, and HIP and our partners can help you pursue these business benefits.
Financial Advisors Seeking To Integrate ESG Winning New Clients With Sustainable 401(k) Options
HIP and our partners can help you:
- Learn the latest US DOL guidance on sustainable ESG investing in 401(k)s
- Convert new clients with a unique, impactful value proposition
- Choose a recordkeeping platform that supports ESG investments
- Select strategic alliances for streamlined payroll integration, fiduciary services & financial wellness
- Overlay ESG, Impact & Sustainability ratings on your fund choices
- Include ESG ratings in your 401(k) client reporting
- Add Fossil-fuel-free portfolio options for impact-focused clients
Investment Advisor Platforms:
- Altruist
- Charles Schwab
- Goldman Sachs’ Folio
- Freedom Advisors (TAMP)
- RPC
- RPG
- Ask us about your platform
Where and how do you source your data?
The data used to generate HIP Ratings is collected through publicly available resources, as well as through non-public subscription databases. To be considered for inclusion in a sector's scorecard, a data source must meet the following three requirements:
- Values must be a quantitative metric of an issuer's impact on people, planet, or trust.
- There must be a direct relationship between the data point and the future risk potential of a bond issuer at any point across the full duration of the bond.
- Data set must deliver significant coverage across the peer universe, providing a performance range and appropriate context for data verification and comparison.
In sourcing data, HIP strives to acquire the most quantitative, comparable, and comprehensive metrics according to these criteria that apply to each given sector.
HIP sources data from dozens of sources, including:
- Issuers and obligors of muni bonds
- Government databases
- Non-profit datasets
- For-profit databases
- Academic research
HIP sources, cleans, quality-checks, and tests the distributions of the results. As HIP produces, publishes, and licenses Ratings, our analysts are very attentive to quality, accuracy, and analytical rigor.
What is the cost for your data offering?
Prices for HIP Ratings of 401(k)s depend on size, assets, and participants in the plan, and start as low as $1000 per year.
Contacts
Nick Gower
[email protected]
Pronouns: he/him/his
HIP Investor Inc.
Direct: +1 (864)420-4210
www.HIPinvestor.com