Step 1: Educate yourself
Overview of trends in impact managing and what others are doing
- Measuring Impact: Subject Paper of the Impact Measurement Working Group, Social Impact Investment Taskforce
- The State of Impact Measurement and Management Practice, Global Impact Investing Network
Measuring Effectiveness: Roadmap to Assessing System-level and SDG Investing, examines how investors can chart a course to assess system-level issues (like those contained in the SDGs) appropriate for theirspecific situation, and then establish effective goals for influence against which to measure progress. In doing so, investors also can assess the potential usefulness of the tools available to them and the effectiveness of the tools they have selected. Ultimately, this approach enables investors to assess their influence in determining changes at the system-level itself and the potential contribution of their efforts and investments.The report is authored by William Burckart, Steve Lydenberg and Jessica Ziegler of The Investment Integration Project (TIIP) and was sponsored by the Investor Responsibility Research Center Institute (IRRCi).A companion document to the report, Measuring Effectiveness: Roadmap to Assessing System-level and SDG Investing-Supplemental Appendices, contains a series of appendices that provide tools and examples for investors, as well as additional context for and information about the concepts discussed
Step 2: Set impact goals
Articulate desired impact and outcomes you are looking for and establish a clear investment thesis
- Five Dimensions of Impact - Impact Management Project
- Aligning impact goals with the Sustainable Development Goals (SDGs) - Impact Theme Framework - TONIIC
Step 3: Select relevant metrics and collect data
Global Impact Investing Rating System (GIIRS), B Lab - Data platform for collecting, benchmarking, and reporting on social end environmental impact of companies and funds. Features include pre-built metric sets, goal-setting functionality for investors, and the largest dataset of private company impact data.
Impact Reporting and Investment Standards (IRIS) - IRIS metrics are designed to measure the social, environmental and financial performance of an investment. You can filter based on your investment priorities and focus areas. Started with reading Getting Started with IRIS.
- Global Reporting Initiative (GRI) Standards - The GRI Standards lists over 400 indicators on on a range of economic, environmental and social impacts. Sustainability reporting provides information about corporate sustainability performance.
Sustainability Accounting Standards Board (SASB) Navigator - Sustainability research platform that helps investors find which ESG issues impact corporate performance and how well companies are disclosing on those issues.
- Navigating Impact -Created by the Global Impact Investing Network (GIIN), the database helps investors select impact strategies and adopt metrics that indicate performance toward their goals.
Step 4: Analyze and report on impact
Toniic Impact Portfolio Tool – Version 2 - An Excel-based tool that allows an investor to classify every underlying investment by its intended impact, as well as other variables that investors take into consideration when designing their portfolios — such as liquidity, expected returns, geography, management structures, and more. The outputs of the tool are visual representations of the individual portfolios.
- List of platforms that collect and report on SASB Data
Step 5: Revisit your impact management strategy
Are you on track to meet your targets and how could your investment strategies be improved?