Measure, assess and value

The SDG Impact Standards for Enterprises provide a practical guide and self-assessment tool for integrating the Sustainable Development Goals (SDGs) into organisational decision-making.

This is a cross-cutting resource, meaning that it supports the internal impact management process as a whole, rather than one or a few of the Actions of Impact Management.

The Investment Portfolio Impact Analysis Tool helps financial institutions holistically understand and manage the actual and potential impacts of their investment portfolios. It aligns with UNEP FI’s unique holistic approach to impact and helps to implement PRB Principle 2 on Impact Analysis.

Use this resource for the following Actions of Impact Management:

• Identify: Identify impact areas and topics related to economic, environmental and social factors associated with an investment portfolio, based on an objective review (cartography) of the portfolio’s sectoral and geographic breakdown.
• Measure, assess and value: Assess current practices and performance in relation to the bank’s most significant impact areas by integrating the outputs of the ‘Identification’ tools with additional data.
• Set targets and plan: Use the outcome of the practice and performance assessment to set targets and define the bank’s action plan.
• Implement: Develop action plans that outline specific strategies, initiatives and measures that the bank will undertake to address the identified impact areas.
• Monitor, learn and adapt: PRB signatories can use the Tool to periodically update and review information on their impact performance, as part of the requirements set out in Principle 2.

Regulation that sets out performance thresholds for organisations to classify their economic activities as “sustainable” according to European policy objectives.

Use this resource to:

• Identify: Find the economic activities that correspond to the financial institution’s activities and review what the taxonomy says about likely impacts on sustainability. This can be an input into identifying sustainability topics to measure. This regulation is based on research connecting economic activities to likely significant impacts on six environmental objectives. Currently, research related to objectives of climate change mitigation and adaptation are most developed.
• Measure, assess and value: Assess whether underlying assets are sustainable. Underlying assets that fall under the taxonomy regulation will report on the portion of their revenue, capital expenditure and operational expenditure that are ‘taxonomy aligned’, and therefore considered a ‘sustainable investment’ according EU policy objectives.
• Set targets and plan: Set objectives for a portion of the portfolio to be ‘taxonomy-aligned’. Regulation provides investors with a set of performance thresholds that have to be met for an underlying asset to be viewed as operating sustainably in relation to one the EU’s six environmental objectives. Underlying assets that are ‘taxonomy aligned’ are generating sustainable outcomes and are therefore also ‘Benefiting stakeholders’.

Reporting standards designed to help organisations understand and disclose their impacts in a way that meets the needs of multiple stakeholders. These standards are arranged by a set of Universal Standards that apply to all organisations, and 35 Topic Standards that contain disclosures for impacts related to economic, environmental and social topics.

Use this resource to:

• Measure, assess and value: The standards themselves provide guidance on selecting metrics to report. Using standardised metrics helps the organisation and its stakeholders compare performance with others.
• Communicate: Report to all stakeholders on ‘material topics’ that reflect the organisation’s most significant impacts.

The Impact Standards for Financing Sustainable Development (IS-FSD) is a framework for donors, development finance institutions (DFIs) and their private partners to make financial decisions that maximise their positive contribution to the SDGs. The Standards are harmonised with the UNDP SDG Impact Standards.

This is a cross-cutting resource, meaning that it supports the internal impact management process as a whole, rather than one or a few of the Actions of Impact Management.

Research on impact valuation published in the form of case studies and white papers. Specific illustrative examples are provided for product impact.

Use this resource to:

• Learn about key considerations when monetising impact, using publicly available information on companies.

This handbook assists impact investors with integrating their impact considerations into their investment practices. It provides practical strategies, tools and case studies to help investors align their financial goals with positive social and environmental outcomes. The handbook covers various aspects of impact investing, including impact measurement, due diligence, portfolio management, and stakeholder engagement.

Use this resource for the following Actions of Impact Management:

• Implement: Execute the strategies outlined in the handbook to integrate impact considerations into investment processes and decision-making. This involves incorporating impact metrics and assessment methodologies into investment analysis, due diligence and portfolio management practices.

The SDG Impact Assurance Scheme is an assurance criteria for demonstrating adherence to the SDG Impact Standards for Enterprises, Private Equity Funds or Bonds, and associated certification.

Use this resource for the following Actions of Impact Management:

• Verification, assurance & certification: Certify that an organisation’s systems and processes adhere to the SDG Impact Standards.

The Harmonized Indicators for Private Sector Operations (HIPSO) are a set of standardised indicators for development finance institutions (DFIs). They provide a common framework for measuring and reporting on the development impact of private sector investments and projects, covering areas such as job creation, environmental sustainability, social inclusion and economic growth.

Use this resource for the following Actions of Impact Management:

• Measure, assess and value: Select from a catalogue of metrics specifically designed for DFIs.

CDP’s Disclosure System is a tool for investors, companies, cities, states and regions to manage their environmental impacts. It enables these organisations to make their environmental impacts transparent, to understand how to reduce their negative impacts and to progress towards environmental stewardship.

Use this resource for the following Actions of Impact Management:

• Communicate: Report to all stakeholders on climate change, forests and water security, based on the organisation’s governance and policy, risks and opportunity management, environmental targets, and strategy and scenario analysis. Responses receive a grade from A-D based on the organisation’s disclosed performance.