Impact measurement, management and reporting
Introduction
How to use these resources
Resources in this module
- Introduction to section
- Frameworks, standards, tools and data sets
- Breadth, depth and duration of impact
- Logic frameworks (Theories of Change) – inputs, outputs, outcomes, impact
- Targets
- Risk (impact and financial) and its mitigation
- Impact data, data providers, approaches to gathering and using data
- Impact monitoring (at investment and portfolio level) and its alignment to the strategy
- Good practice reporting to investors
- Good practice reporting for investors
Glossary of terms
We have put together a glossary of terms for impact investing
Filter resources by level:
Introduction to section
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Measuring Impact
Social Impact Investment Taskforce (superseded by Global Steering Group for Impact Investment)
Reading time: 20 minutes
The guide provides a useful chart highlighting the impact investing ecosystem and the relationships between different actors and organisations. It describes and provides examples of the impact value chain from initial investment through to the resulting impact. The report highlights 7 guidelines for introducing a strong impact measurement framework.
What the reviewer found helpful:“Chapters 1 & 2 present useful guidelines on impact measurement broken down into 4 phases that could be easily implemented today”
Eilidh Anderson
Intermediate
Frameworks, standards, tools and data sets
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Impact investing handbook (Chapter 5)
Rockefeller Philanthropy Advisors
Reading time: 60 minutes
An in-depth practical guide to impact measurement and management, part of a ‘handbook for impact investors’. Best for those who have some advanced knowledge of IMM approaches and would like to see the big picture and deepen their understanding. Brings lots of diverse (and sometimes quite complex) ideas to bear in one place.
What the reviewer found helpful:“You come out of this chapter with more confidence, neatly pulls together a coherent whole.”
Chris Cullen
Intermediate
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Creating Impact: The Promise of Impact Investing
International Finance Corporation
Reading time: 20 minutes
The chapters cover some of the main challenges and solutions currently facing the impact investing market Chapter 2.4 covers some of the regulatory barriers that impact investors may face, particularly with regards to fiduciary duty and the balance of considering ESG factors alongside in some cases regulatory requirements to maximise returns Chapter 3 looks into some of the challenges faced in scaling up the impact investment market and how the industry can address these to attract more capital
What the reviewer found helpful:“An interesting case is put forward for the role that impact investment can play while meeting fiduciary duty”
Chloe Mallo
Intermediate
Breadth, depth and duration of impact
There are no Intermediate resources for this topic
Logic frameworks (Theories of Change) – inputs, outputs, outcomes, impact
There are no Intermediate resources for this topic
Targets
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State of impact measurement & management 2020
Global Impact Investing Network
Reading time: 15 minutes
This is a great resource summarising the types of impact that investors in this field hope to achieve (i.e. social vs environmental) and the types of stakeholders their impact usually targets. The data from 278 respondents is also broken down by emerging vs developed markets, ecoregions, and impact categories (i.e. health, education).
What the reviewer found helpful:“I found it helpful to see some clear statistics on the motivations for impact measurement and how popular some causes are. It is also promising to see that 91% of respondents are screening for negative impact”
Eilidh Anderson
Intermediate
Risk (impact and financial) and its mitigation
There are no Intermediate resources for this topic
Impact data, data providers, approaches to gathering and using data
There are no Intermediate resources for this topic
Impact monitoring (at investment and portfolio level) and its alignment to the strategy
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The Good Investor – Monitoring and Evaluation (pp. 48-60)
Investing for Good
Reading time: 15 minutes
Overview for investors on how to monitor and evaluate impacts to determine whether the investment is having the desired effect and the importance of doing so alongside evaluation of financial outcomes The chapter covers how to monitor the use of capital, how to monitor impact KPIs and assess the quality of reporting Subsequently, the chapter covers the evaluation of impact from both a risk and generation perspective and the importance of evaluation to learn and adapt to achieve better impact outcomes
What the reviewer found helpful:“Though academic in nature the chapter is well structured and broken down into digestible sub-sections”
Chloe Mallo
Intermediate
Good practice reporting to investors
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How to measure and report social impact
The Social Investment Business Group
Reading time: 5 minutes
Section 5 of this report is about communicating the results of the impact measurement system in an impact report. It covers the qualities and outline of a good impact report and stresses that impact reporting should be a natural extension of the impact measuring and revising process.
What the reviewer found helpful:“I liked the straight forward and clear format of this section of the report. ”
Rebecca Lagan
Intermediate
Good practice reporting for investors
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Better reporting landscape report
Social Impact Investment Taskforce
Reading time: 2.5 hours (10 minutes for Executive Summary)
A government-commissioned report that aims to encourage better and more consistent reporting of environmental and social impacts Some excellent summaries of the different approaches and challenges within the reporting of impact
What the reviewer found helpful:“Clearly written, stimulating and lengthy. I would only read the most relevant sections but well worth it.”
Chris Cullen
Intermediate
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UK Social Housing, Building a Sector Standard Approach for ESG Reporting White Paper
The Good Economy
Reading time: 40 minutes
In-depth white paper on the need for a standardised set of ESG/Impact reporting metrics for the social housing sector The report is split into three parts covering: 1) the UK housing market and the role social housing can play in helping meet significant demand, 2) the role private capital can have, particularly in light of increasing demand for ESG/Impact investments and 3) presenting a set of comparable and consistent ESG standards for the sector
What the reviewer found helpful:“Section one is a useful intro to the sector for those less familiar with the fundamentals”
Chloe Mallo
Intermediate
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Reporting with purpose and impact
PwC
Reading time: 40 minutes
This is an insightful resource that provides an overview of the impact and sustainability reporting standards that a Big Four accountancy firm expects of its clients. It covers communicating social and environmental impact in the context of a company’s purpose and strategy as well as value creation, expected disclosures and transparency. The 52 slides are packed with useful infographics and real-world examples of impact reporting which would be useful whether you are putting together an impact report for the first time or looking to enhance an advanced report.
What the reviewer found helpful:“This is a great step by step guide to use when designing your impact report. It contains useful tips ranging from basic to advanced and contains useful analysis of the FTSE 350”
Eilidh Anderson
Intermediate
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Reporting of Environmental, Social and Economic Outcomes(opens new window)
Impact Investing Institute
Reading time: 30 minutes
This briefing paper details how and why current forms of sustainability reporting need to evolve, in order to ensure greater transparency and accountability in the impact investing market. It sets out the need for convergence of global standards for sustainability reporting, with the creation of a global governing body, as well as the introduction of mandatory ‘public interest reporting’ (reporting of outcomes that are not necessarily material for enterprise value creation). It uses the concept of ‘dynamic materiality’ to demonstrate the benefit this has to businesses as well as society. The creation of public depositories of data, metrics, KPIs, tools and approaches are also discussed.
What the reviewer found helpful:“The UK and EU specific recommendations at the end of the document are particularly useful for understanding some concrete steps that can be taken to improve impact reporting” Anna Martinovic
Intermediate