Return on
Happiness
What is ROH?
No, that’s not a typo. While ROI (return on investment) is the typical performance measure used to determine the efficiency of any given investment, Pollen Group has opted to evaluate its investment outcomes from a very different perspective: ROH (return on happiness).
ROH = Good for People + Good for the Planet + Good for ROI
Pollen Group believes in the power of ROH as a value multiplier for ROI. Instead of focusing solely on financial considerations, Pollen Group seeks to have real, quantifiable positive effect on human wellbeing around the globe. This positive effect not only helps to make the world a better place, but also increases potential returns over the longer term.
In order to nurture ROH on an ongoing basis, our Venture Garden brings together groundbreaking initiatives that meet the previously unmet needs of millions around the world. By promoting improved health and wellness, while also protecting the natural world that enables these innovations, we are able to generate a measurable impact on individuals, communities, and even the entire planet.
This ROH impact drives increased ROI, creating fertile ground for even greater future growth.
Why ROH is the New ROI
“Return on Happiness” is created as a result of adopting a mindset and management practices which ultimately contribute to the success of your business, while taking responsibility and carrying out meaningful actions to reduce the damage to our living environment.
Your business, like every business, is deeply intertwined with environmental, social, and governance (ESG) concerns. It makes sense, therefore, that a strong ESG proposition can create value.
ESG scores serve as quantitative metrics assessing an organization’s efforts in environmental sustainability, social responsibility, and governance practices. This shift underscores a heightened commitment to evaluating and improving the broader impact of businesses on the planet and society.
Recent evidence links higher ESG scores to a 10 percent lower cost of capital. Further, companies with robust ESG practices displayed a lower cost of capital, lower volatility, and fewer instances of bribery, corruption, and fraud over certain periods.
Simply put, if you care about the environment and life in it, you inevitably constitute a catalyst for happiness to be higher, which translates into the bottom line. You will earn more, and not only in terms of a positive brand image, personal and professional satisfaction, but you will also see an increase in your return on investment.
Your business, like every business, is deeply intertwined with environmental, social, and governance (ESG) concerns. It makes sense, therefore, that a strong ESG proposition can create value.
ESG scores serve as quantitative metrics assessing an organization’s efforts in environmental sustainability, social responsibility, and governance practices. This shift underscores a heightened commitment to evaluating and improving the broader impact of businesses on the planet and society.
In reviewing over 1,000 studies published between 2013 – 2020, researchers have found a positive relationship between ESG and financial performance.
Between 2013 and 2020, companies with consistently high ESG performance tended to score 2.6x higher on total shareholder return than medium ESG performers.
Recent evidence links higher ESG scores to a 10 percent lower cost of capital. Further, companies with robust ESG practices displayed a lower cost of capital, lower volatility, and fewer instances of bribery, corruption, and fraud over certain periods.
Simply put, if you care about the environment and life in it, you inevitably constitute a catalyst for happiness to be higher, which translates into the bottom line. You will earn more, and not only in terms of a positive brand image, personal and professional satisfaction, but you will also see an increase in your return on investment.
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Companies perform better when they are deliberate about their role in society and act in the interests of their employees, customers, communities, and their shareholders.
BlackRock CEO Larry Fink’s 2022 letter to CEOs
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88% of impact investors said their investments were either meeting or exceeding their financial expectations.
Based on a 2021 Survey by the Global Impact Investing Network
