Peeling Back the Hood: Our Approach to ESG
To incorporate fiscal justice into our portfolio decisions, we developed and implemented our own rating system that evaluates and centers Accountability, Impact, and Reduction of Harm (AIR) in each investment we consider. This proprietary 23-point metric evaluates investments based on financial transparency and community oversight (accountability), measurable benefits for marginalized communities (impact), and the minimum standard to prevent negative consequences like displacement (reduction of harm).
Our proprietary AIR methodology—Accountability, Impact, and Repair (and Reduction of Harm)—is the analytical engine driving our restorative economics framework. It functions not only as a robust measure of social impact but also as a comprehensive lens for evaluating fundamental risk. This metric allows us to develop an impact portfolio designed to make the world a better place, transforming capital from an extractive force to a structural stabilizer.
The AIR Metric allows us to evaluate:
Systemic Risk Pricing – Corrects market asymmetries to ensure equitable capital access
Civic Infrastructure Integrity – Evaluates vital resources and anchor institutions as core credit fundamentals
Extractive Governance Analysis – Quantifies fiscal fragility inherent in punitive or extractive revenue models
Repair and Reduction of Harm – Bridges the gap to restorative economics by dismantling extractive cycles and fostering long-term equity
Access to Community-Rooted Research (Activest)
Our most recent community engagement has centered on Jackson, Mississippi, in partnership with Activest. Jackson, like many majority-Black cities, is fighting for access to vital resources like water and land use while local policy control is under threat. In Jackson, we are moving beyond simple bond buying by engaging with community members organizing around policy changes in support of more autonomy and community ownership of capital and assets.
Accountability
Accountability is the diagnostic pillar through which we evaluate the institutional integrity, commitment to transparency, and fiscal governance of municipal issuers. We analyze the relationship between the issuer and the community to identify “Ferguson model” extractive governance, where revenue depends on punitive policing and aggressive fine collection. Quantifying fiscal fragility ensures that our capital supports issuers who are transparently aligned with community welfare and long-term civic stability.
Impact
Impact quantifies tangible changes—better infrastructure and stronger communities—in marginalized areas. We move beyond superficial ESG labels to measure the “social alpha” generated by our investments, specifically focusing on improved educational facilities, expanded healthcare access, and resource security. This rigorous assessment confirms that the preservation of people and communities is the primary driver of long-term credit stability and institutional resilience.
Repair and Reduction of Harm
Repair and reduction of harm represent the critical pivot toward restorative economics, focusing on dismantling the extractive financial cycles that have historically drained wealth from diverse communities. We prioritize allocations that actively reduce systemic harm and repair the fiscal scars of secular neglect, such as the disproportionate borrowing costs known as the Black tax. By bridging the gap between risk mitigation and community wealth-building, we ensure our capital fosters true institutional autonomy and equitable economic growth.
Bondholder Engagement
Engaging with bondholders is how we achieve our restorative economics mission. Next World Assets (NWA) initiates direct, bilateral dialogue with municipal leaders to reduce information asymmetry and signal institutional demand. For example, we engage with treasurers of Historically Black Colleges and Universities (HBCUs), share our interest in funding their future infrastructure projects, and assist them in securing the lowest possible borrowing rates.
We are a strategic stakeholder in complex infrastructure deals and the restructuring of debt within bankruptcy proceedings. In these high-stakes workouts, our primary objective is to preserve public ownership of essential utilities, such as water systems. Public control safeguards against the extractive risks of privatization, ensuring vital civic resources are managed for long-term community resilience rather than short-term private yield.
Next World Assets is registered as an investment adviser with the North Carolina Securities Division. Registration does not imply a certain level of skill or training. This communication is not an offer or solicitation to buy or sell any security and does not constitute investment advice. Past performance is not indicative of future results. Please refer to Next World Asset’s Form ADV for important disclosures regarding our advisory services, fees, and conflicts of interest.