Impact Measurement Norms for Powerful Results November 18, 2020 - - PowerPoint PPT Presentation
Impact Measurement Norms for Powerful Results November 18, 2020 Who we are Evaluation Executives Social Sector Practitioners Philanthropy Professionals Strategic Learning Enthusiast Veronica Olazabal Jane Reisman, Ph.D
November 18, 2020
Veronica Olazabal
Foundation Jane Reisman, Ph.D
Management
Executives
Practitioners
Professionals
Learning Enthusiast
Why we are here Where did we come from What does “good” look like today Where are we going
Global Handbook of Impact Investing: Solving Global Problems Via Smarter Capital Markets Towards A More Sustainable Society 1st Edition by Elsa De Morais Sarmento, R. Paul Herman
around impact measurement and management (IMM) norms
Source: Sonen Capital
Where is the impact in impact investing?
level
approaches
Key takeaway: heading down the path of impact washing
Understanding the Tent
Over the last ~five years, there has been a concerted effort to address fragmentation and underdeveloped approaches and methods in IMM
Source: Impact Investing Institute, 2020
Norms and Case Examples
Key Features of an Impact Management and Measurement Approach
SDGs IFC – led Operating Principles for Impact Management Impact Management Project (IMP) GIIN’s IRIS+
Description
UN’s 17 sustainable development goals for 2030 Broad principles and processes to guide impact management Guiding framework to assess holistic impact picture End to end system for IMM https://sustainabledevelopm ent.un.org/sdgs https://www.impactprincipl es.org/ https://impactmanagementpr
https://iris.thegiin.org/
Resource Industry adoption (% of GIIN
members aligned to standard1)
73% 46% 32% 18 %
Source: Based on GIIN’s Annual Impact Investor Survey 2020
Standard
Over the last five years, market leaders have emerged as best in class for managing and measuring impact, decreasing fragmentation and enabling scaling of impact investing
11
and environmental performance alongside financial performance; and specifically, an appreciation of the 5 dimensions of impact to define impact goals and metrics.
measuring and optimizing outcomes and impact.
(SDGs) has had a significant effect on creating a standardized way to clarify, communicate and manage impact intentions.
11Everything we do affects people and the planet. Managing impact means figuring out which effects matter – and then trying to prevent the negative and increase the positive.
– Impact Management Project
Key features of an impact measurement and management approach: 3 specific development for advancing impact investing through IMM
Impact Measurement and Management (IMM): Must-haves
Impact Management Project’s Five Dimensions of Impact
The GIIN’s IMM Journey Over the Last 10 Years
BEFORE: IRIS = Catalog of Metrics
metrics
metrics by theme, or guidance)
IRIS 1.0 2009 IRIS 3.0 2014 IRIS 4.0 2016 2010 IRIS 2.0
Since IRIS 1.0 in 2009, IRIS has evolved over the years increasing coverage and alignments with other standards and is today the generally accepted system to measure, manage, and optimize impact.
TODAY: IRIS+ = IMM System
IRIS+ Launch 2019 2020 2021
IRIS+ | Key Features
Evidence Base
to measure progress towards impact goals to inform theory of change, anticipate expected impact to improve IMM practice and impact outcomes
Core Metrics Set Practical Guidance Standards Alignment A Public Good
to standardize impact reporting across the industry to provide access to all impact investors
IRIS+ is a system to measure, manage, and optimize impact – helping investors to translate impact goals into real results.
Case Example: Toniic Sustainable Development Goals Mapped by Asset Classes (2017)
▪ Confirm priorities: ▪ Listening sessions ▪ Engage grantees in strategy development ▪ Create advisory board(s) ▪ Ensure listening throughout supply chains, especially between grantees and end consumers ▪ Involve end-communities and grantees in measuring success
▪ Embed community-level feedback into preliminary assessment of programmatic success ▪ Ensure accountability of public policy solutions
Transparency, verification and assurance of impact data and evidence Operating Principles for Impact Management
Source: https://www.impactprinciples.org/principles
Covid has changed how we manage impact--biasing approaches that generate rapid and timely insights from a distance
(e.g., Poverty StopLight, Commcare, SocialSuite)
Echomobile, Magpi, Textit)
interactive voice response (IVR) (e.g., 60 Decibels, Viamo, SurveyCTO)
MOBILE DATA REMOTE SENSORS ”BIG” DATA GEOSPATIA L
Census data, insurance data (e.g., Socially Determined, Atlas.ai)
and sentiment data (e.g. Twitter, Facebook, Google)
Imagery (e.g., Atlas.ai, AidData, Terrago Edge)
coordinates and raster data (e.g., DHIS2, Mango, ESRI)
(e.g. Ushahidi, Crowdspot, GIS Cloud)
weather patterns, air and water quality (e.g. Berkeley Air Monitoring Group, Mobosens, Rainforest Connection)
biometric (e.g., Wearables, FitBit, credit card companies)
15
In action: Rewiring how we measure impact in a Post-Covid-19 world Using Real-time data to adapt in moments of crisis Accelerating the use of remote surveys during times of crisis
Consistent implementation of norms and principles
Broad agreement on norms, conventions, values, principles. IRIS+ provides the “how to” to IMM norms and conventions.
Core metrics for clear and comparable data
To get to benchmarkable data, investors require core, standardized metrics to track and compare results. IRIS+ provides Core Metrics Sets for data clarity, consistency, and comparability.
Streamlined best in class resources
200+ tools, resources, and methods claiming to support impact analysis and
best in class resources according to impact themes and goals .
IRIS+ | Designed to Solve Key Needs in IMM
+20,000 subscribers
IRIS+ has been widely adopted across the world since launch in May 2019 Where
IRIS+ | Global Use
+13,000 unique users +8,000 organizations
INVESTOR BREAKDOWN
Who How Many
Structuring our investments to drive impact by design
Asking the right questions at the right time helps optimize for social and environmental performance, manage sustainability and prevent harm
Source: Zero Gap Fund, Annual Impact Report https://www.rockefellerfoundation.org/wp-content/uploads/2020/09/Zero-Gap-Fund-2019-Annual-Update_Pu blic-Facing.pdf
The Rockefeller Foundation Case
29
2 9
Impact Assurance Determine Breadth & Depth of Impact Impact Framing Identify Targets Metrics & Reporting Requirements Information Management
magnitude of the issue/ problem to be solved (i.e., ∆ between current and future desired state)
people the product or service could reach and how deep its impact could be
guidance or projections, and drawing on existing evidence base and benchmarks, determine ambitious yet realistic reach targets
alignment around the “five dimensions of impact” among all key stakeholders
impact questions to identify appropriate indicators and metrics
targets and indicators
frequency and substance of impact reporting (including impact indicators/ metrics based on verifiability and measurability)
and approaches for information management and analysis
conduct Independent assessment of performance and impact at the portfolio or thematic level
Pipeline Development U n d e r w r i t i n g Deal Closing Portfolio Mgmt/IMM
with overarching ZeroGap Theory of Change
charitability requirements
capacity and commitment to collect and report on impact data
requirements; incorporate into impact covenants
support decision making, risk mitigation, and impact maximization
Ensure Investee Alignment Determine Capacity Negotiation Data Storage, Analysis, Use
Measurement Investment