HIP = Human Impact + Profit

Our world of more than six billion people faces many human problems that need solutions, many of which can be served by companies. By solving these human needs profitably through products and services (from Walmart’s $4 generic drug program to ICICI Bank’s micro-loans to Vestas’s wind turbines), a company can benefit customers, inspire employees, engage suppliers, and deliver sustainable profitable growth for its investors.

Building a HIP Portfolio that solves problems in Health, Wealth, Earth, Equality and Trust is a driver for attractive long-term financial performance. Today, one out of nine investment dollars seeks “human impact” as well as profit. And Goldman Sachs has shown out-performance by HIP-like publicly-listed companies.

The HIP Scorecard enables companies to identify the innovations that will serve customer needs profitably while improving society. At the same time, investors applying the HIP methodology have the opportunity to both “do good” and “make money.”


R. PAUL HERMAN, CEO + Founder, Chief Investment Officer, Chief Compliance Officer, Series 65 Investment Adviser Representative

Paul invented “HIP = (Human Impact + Profit)” in 2004 to connect for-profit investors seeking positive human, social and environmental impacts and financial returns with investments designed to deliver those intended results.

Since then, Paul and the HIP team have advised investors (individuals, families and foundations – and their investment advisers); launched and manage the HIP 100 Index (SM) portfolio (a sustainable substitute for the S&P 100); and manage wealth for clients seeking their portfolios to become more HIP.

The HIP Scorecard (SM) ratings and rankings – which focus on quantifiable metrics of sustainability and how they drive financial performance – have been featured in Fast Company magazine and online in 2007, 2008 and 2010. [HIP has also advised corporate clients, like Wal-Mart and NIKE, on how to be more HIP.]

Paul’s landmark book, The HIP Investor: Make Bigger Profits by Building a Better World is published by John Wiley & Sons, and swiftly became a top 20 business book bestseller in April 2010 for Inc. magazine / 800ceoRead.com.

Paul’s financial expertise began with his Wharton School finance degree and work at McKinsey & Co. developing incentive regulation for energy companies and regulators, as well as strategic improvements for Fortune 500 corporate clients and government at CSC Index. At eBay founder Pierre Omidyar’s Network, Paul designed investment strategy that also enabled high human impact, including venture-backed growth companies. Paul led Ashoka.org’s fundraising and partnerships as Chief Development Officer globally, expanding its donations and entreprenurial networks.

Paul’s first pioneering venture reached 30,000 customers by creating a permission-based online debit card and financial system for families, teens and kids, a $200 billion market that including shopping, saving, investing and donating.

Paul’s own HIP investing includes companies in microfinance, organic food, renewable energy, affordable health care, and B2B systems. Paul is an Investment Committee member of the Patient Capital fund and an advisor to Net Impact.

Paul is also a peer expert for InterfaceRAISE, an adjunct professor teaching MBAs at Thammasat Business School in Bangkok, Thailand, and a visiting lecturer for MBAs, including the Presidio MBA Graduate School in San Francisco.

More on www.hipinvestor.com