The First Public Benefit Corporation SPAC

At its initial public offering on February 5, Sustainable Development Acquisition I Corp. (SDAC) became the first public benefit corporation Special Purpose Acquisition Company (SPAC). SDAC is formed to acquire or merge businesses in the water, food, agriculture and renewable energy sectors that are addressing the global challenges identified by the United Nations Sustainable Development Goals.

Though there are a number of publicly traded public benefit corporations, this is the first time the novel legal structure will be used for a SPAC. The public benefit corporation is a new type of corporation for a new type of entrepreneur, the social entrepreneur, who creates business models that benefit society, the environment, employees, customers and investors. These social entrepreneurs believe that business can serve both shareholders and society, considering the impact of their decisions on multiple stakeholders rather than maintaining a singular focus on short-term maximization of financial profits.

The public benefit corporation shifts the mandate of the company from a narrow focus on pure profit maximization to a broader focus of creating a positive impact on people and the planet while still making a profit. At the same time, it explicitly removes the legal liability for choosing purpose over profit. Beyond the shift in focus, the public benefit corporation is designed to increase transparency and accountability regarding their social and environmental impact. Every year, public benefit corporations are required to measure their social and environmental performance and share that in an annual benefit report to shareholders, the state and the public.

Amid a crowded Environmental, Social, and Corporate Governance market, SDAC stands out as one of only a handful of SPACs that are also public benefit corporations. In line with these values, SDAC’s differentiated investment strategy seeks companies that are not only disrupting the status quo but doing so while addressing global challenges in line with the United Nations Sustainable Development Goals (SDGs)—the universal call to action to achieve a more sustainable future, which represents a $12 trillion market opportunity. Specifically, SDAC is seeking growth-oriented companies in the water, food and agriculture, renewable energy, and environmental resource management sectors.

SDAC is led by Nicole Neeman Brady, Chief Executive Officer and Director; Eric Techel, Chief Financial Officer; and Robert Schultz, Chairman of the Board of Directors. The team also includes independent directors Kathleen Brown, Andrew Kassoy and Annette Rodriguez-Ferrer; as well as operating partners Anthony Abbenante, William Orum and Jason Scott.

The formation of SDAC follows a decades-long partnership between two highly complementary firms in Renewable Resources Group and Capricorn Investment Group, each of which has more than 15 years of dedicated impact investing, research and operating experience focused on climate change and sustainability. The SPAC will leverage its sponsors’ unique experience, along with their global footprint, to identify growth-oriented companies that align with its mission and goals to drive change.