Global impact investing networks launch measurement tool to boost market
29 March 2021 at 10:22 pm
Impact investing leaders say the move is a “major step” forward for harmonising impact measurement
A number of impact investing networks and leading investors are launching a set of measurement indicators they say will boost the fast-growing market for impact investing.
The Joint Impact Indicators will assist impact investors to report and measure goals and outcomes across gender, the climate, and employment. They are aligned between the Harmonised Indicators for Private Sector Operations (HIPSO) and the IRIS Catalogue of Metrics – the two impact indicator sets used widely by impact investors.
Launched by the Global Impact Investing Network (GIIN), and the International Finance Corporation (IFC), the scheme has been endorsed by leading impact investors and associations that have called for others to join them in using these indicators.
Amit Bouri, CEO of the GIIN, said that rigorous, credible impact measurement and management were “fundamental” to the integrity of the impact investment market.
“Once investors adopt common indicators, the industry can move in the direction of comparability of impact investments, so they can know what will generate the greatest impact,” Bouri said.
“This is crucial, because the challenges the world faces are far too urgent for capital to underperform.”
He acknowledged that while there was much more to be done in harmonising impact measurement across the sector, this was an important first step.
Sally McCutchan OAM, the CEO of Impact Investment Australia said the indicators would allow investors to direct money to where it could have the greatest impact.
“We welcome the Joint Impact Indicators as a good step toward further harmonisation and unification of impact measurement standards.” said Sally McCutchan CEO Impact Investment Australia,” McCutchan told Pro Bono News.
Despite the COVID-19 crisis, research shows that the global impact investing market is continuing to mature and is now worth more than $1 trillion.