ServiceNow Racial Equity Fund will increase lending for homeownership,
entrepreneurship, and neighborhood revitalization in 10 U.S. regions
SANTA CLARA, Calif. — January 26, 2021
– ServiceNow (NYSE: NOW), the leading digital workflow company that makes
work, work better for people, today announced the creation of the ServiceNow Racial Equity Fund. This $100
million investment fund is designed to drive more sustainable wealth
creation by funding homeownership, entrepreneurship, and neighborhood
revitalization within Black communities in 10 regions across the United
States. Managed by RBC Global Asset Management’s impact investing team on
behalf of ServiceNow, the fund aims to strengthen under‑resourced
communities by overcoming systemic barriers that lead to inequitable access
"ServiceNow’s purpose is to make the world of work, work better for people,
and we also have a tremendous opportunity to make the world work better,
too," said Gina Mastantuono, ServiceNow Chief Financial Officer. "2020
amplified the racial and socioeconomic inequalities disproportionately
impacting Black communities across the country. With the ServiceNow Racial
Equity Fund, we will expand opportunities to reduce the wealth gap for
potentially thousands of U.S.‑based individuals, families, entrepreneurs,
and business owners."
Homeownership has been proven to be one of the greatest contributors to
wealth creation for families and communities by anchoring families in
neighborhoods, spurring local entrepreneurship and job creation, and
improving overall economic growth. However, due to systemic racial
injustice, Black individuals and communities have traditionally been the
most likely to be denied access to capital, according to Citi GPS: Global Perspectives and Solutions.
The ServiceNow Racial Equity Fund will buy smaller community loans to
increase the lending capacity for local banks. By increasing access to
capital, the investment will facilitate homeownership and entrepreneurship
in Black communities, leading to job creation and wider economic growth.
The investment, which is the first of its kind for ServiceNow, will
initially focus investments in Boston, Chicago, Dallas, Houston, New York,
Orlando, San Diego, the San Francisco Bay Area, Seattle, and Washington,
D.C. – locations where ServiceNow has significant operations and community
RBC Global Asset Management will manage the investment strategy on behalf
of ServiceNow as a custom institutional separately managed account. The
fund will prioritize loans for homeownership and affordable housing, small
business loans for companies that serve the community or are owned by a
Black entrepreneur, and community infrastructure loans including
healthcare, education, and neighborhood revitalization.
"Diversity, inclusion, and belonging are essential to who ServiceNow is,
how we’ll grow, and how we’ll innovate," said Mastantuono. "With the
expertise and passions of our employees around the world, the power of our
digital workflow solutions, and the strength of our financial resources and
strategic partnerships, ServiceNow aims to create equitable opportunity and
drive real, lasting change."
About the ServiceNow Racial Equity Fund
RBC Global Asset Management will identify loans through its network of
banks and other lenders supporting Black communities. Each loan will be
screened to ensure it aligns with fund goals and requirements. Loans that
match the fund’s criteria will be purchased as securities for ServiceNow’s
portfolio. The fund will be available for investment on February 1, 2021
and will be fully invested in 2021.
To learn more, please visit the ServiceNow Racial Equity Fund Fact Sheet and the ServiceNow Blog.
ServiceNow (NYSE: NOW) is making the world of work, work better for people.
Our cloud‑based platform and solutions deliver digital workflows that
create great experiences and unlock productivity for employees and the
enterprise. For more information, visit: www.servicenow.com.
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