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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Executive summary: State of impact measurement & management 2020
Global Impact Investing Network
Reading time: 20 minutes
This is an executive summary of the second survey carried out by the GIIN on the state of Impact Measurement and Management (IMM). It sets out their four key findings along with any trends established since the first survey. The findings most notably show: The importance of measuring and managing impact results for a variety of reasons e.g. to report impact to key stakeholders. A growing sophistication of IMM practices over time. Investors are beginning to coalesce around certain tools e.g. the UN Sustainable Development Goals. Investors are increasingly demanding insight into impact performance. IMM incurs costs, yet also generates financial benefits.
What the reviewer found helpful:“There is a box containing details of the sample; the number of survey respondents, their organisation types, location and target returns. This is helpful to quickly understand who and where the information is coming from.”
Rebecca Lagan
Advanced
Frameworks, standards, tools and data sets
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Guidelines for good social impact investment practice
Global Impact Investing Network
Reading time: 20 minutes
Seven guidelines on impact measurement best practices for impact investors and impact organisations were developed by a working group on Impact Measurement at the G8 Summit in London in 2013. The guidelines are organised in a table explaining why each guideline matters, a practical example of its application and the steps required to implement it. The seven guidelines are further organised under Plan, Do, Assess and Review and for each one there is a set of guiding questions to help organisations apply them in an appropriate way.
What the reviewer found helpful:‘’I liked the tabular approach of this resource which helped me dip in and out of the relevant areas. The case in point examples was also helpful to grasp the context.”
Rebecca Lagan
Advanced
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Measuring the impact in impact investing
Harvard Business School
Reading time: 15 minutes
This in-depth study reviewed impact measurement methods from 20+ domestic and international organisations and found 4 categories: expected return, theory of change, mission alignment and experimental methods. It highlights the different advantages and disadvantages of each method and makes recommendations for effective adoption. The report also uniquely recommends an integrated model of impact measurement which uses different approaches for early-stage versus mature impact investors.
What the reviewer found helpful:“The report provides a valuable summary of different measurement methods suitable for early and sophisticated investors and investees. And some interesting incentives!”
Eilidh Anderson
Advanced
Breadth, depth and duration of impact
There are no Advanced resources for this topic
Logic frameworks (Theories of Change) – inputs, outputs, outcomes, impact
There are no Advanced resources for this topic
Targets
There are no Advanced resources for this topic
Risk (impact and financial) and its mitigation
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Shifting the lens: A derisking toolkit
Bridges Ventures & Bank of America Merrill Lynch
Reading time: 60 minutes
This report unpicks the general “sense of risk” associated with impact investing into 5 distinct risk factors that are most deterring asset owners. It then investigates de-risking features to mitigate each one. The result is a practical de-risking toolkit for designing impact investment products, brought to life by real-world examples of de-risking features already at work. The report closes with actionable recommendations for those investing or facilitating investing in the market.
What the reviewer found helpful:“A long meaty report, but well written and with a clearly defined purpose of broadening the impact investment market by clarifying and mitigating the risks involved.”
Rebecca Lagan
Advanced
Impact data, data providers, approaches to gathering and using data
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Data collection and analysis methods in impact evaluation
UNICEF
Reading time: 20 minutes
The brief provides an overview of the issues involved in collecting and analysing data to evaluate impact outcomes and how to help mitigate bias and these challenges Covers how to effectively build a complete framework for selecting data, how to collect it, addressing data gaps, ensuring data quality etc. using a variety of collection and analytical methods Highlights best practice as well as limitations and common challenges
What the reviewer found helpful:“Thorough methodology on best practice for evaluating the success of the impact outcomes achieved by a programme or policy”
Chloe Mallo
Advanced
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Impact investing handbook (Chapter 5, pp 122-36)
Rockefeller Philanthropy Advisors
Reading time: 40 minutes
This is a detailed explanation of the evolving nature of impact measurement and it encourages you to consider why, what, and how you are measuring your impact. Page 5 summarises the common principles, frameworks and standards used across the industry (such as the UN SDGs and IRIS+) The report also outlines how to assess an individual funds performance and impact across the portfolio incl. qualitative insights.
What the reviewer found helpful:“The report includes some useful charts and gives case studies of using and disclosing qualitative measurements of portfolio performance to investors”
Eilidh Anderson
Advanced
Impact monitoring (at investment and portfolio level) and its alignment to the strategy
There are no Advanced resources for this topic
Good practice reporting to investors
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Result! What good impact reporting looks like
New Philanthropy Capital
Reading time: 15 minutes
A helpful summary of what impact reporting is, why it is important and how to go about it. It focuses on 6 principles of good impact reporting and how to adapt your report depending on who your audience is (i.e. stakeholders, funders or organisations). The report contains a case study and useful resources for further reading.
What the reviewer found helpful:“I liked the section on including the lessons you’ve learnt in your impact report”
Eilidh Anderson
Advanced
Good practice reporting for investors
There are no Advanced resources for this topic