Impact Management | February 22, 2023

Streamlined, standardized and benchmarked: Optimizing impact data for capital markets

Dennis Price
ImpactAlpha Editor

Dennis Price

ImpactAlpha, Feb. 22 – It’s the data wonks’ time to shine.

With more than $1 trillion in impact investing assets under management, investors are demanding better impact data. “Investors need clear, consistent, and comparable information on both the positive and negative impacts of companies,” said Omidyar Network’s Chris Jurgens.

The Tipping Point Fund, backed by Omidyar and other donors, is backing 16 organizations to improve the comparability, standardization and disclosure of an investment’s impacts. 

Indices, scorecards, standards and registries

To boost comparability of impacts across a range of environmental, social and economic factors, 60 Decibels is expanding its microfinance social performance index. As You Sow is extending the reach of its S&P 500 racial justice scorecard. XBRL International is establishing a sustainability report registry.

Common Approach’s impact data standard will help enterprises communicate their impacts to communities as well as investors.

Systems-level impact

Others are helping investors assess the impact of systems-level strategies.

The Investment Integration Project is building a framework to help investors measure their influence on systemic risks. Impact Frontiers will help investors incorporate systems-level considerations into decision-making.

World Benchmarking Alliance will push adoption of its financial-systems benchmark to measure financial institutions’ performance against the Sustainable Development Goals.