Monitor, learn and adapt

The Financial System Benchmark assesses and ranks the 400 most influential financial institutions on their contribution to global goals, such as the SDGs and the Paris Agreement. As such, it acts as a global accountability mechanism.

Use this resource for the following Actions of Impact Management:

• Benchmarking and rating: Identify areas where it is possible to influence financial system transformation, and to integrate the findings on risks and impacts into relevant internal functions and processes.

The TNFD Disclosure Recommendations provide companies and financial institutions of all sizes with a risk management and disclosure framework to identify, assess, manage and, where appropriate, disclose nature-related issues.

Use this resource for the following Actions of Impact Management:

• Communicate: Ensure consistency of language, structure and approach with both the Task Force on Climate- related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB), to enable integrated climate- and nature-related reporting.

This guidance outlines how to to identify, assess, manage and disclose nature-related issues through the ‘LEAP’ approach (Locate, Evaluate, Assess, and Prepare). It is designed for use by organisations of all sizes, and across all sectors and geographies..

Use this resource for the following Actions of Impact Management:

• Identify: Understand an organisation’s potentially material sources of nature-related dependencies, impacts, risks and opportunities.
• Measure, assess and value: Understand which nature-related risks and opportunities are material and should be disclosed by the organisation. This is done through the identification, measurement and prioritisation of nature-related risks and opportunities originating from the identified dependencies and impacts on nature (see Identify above).
• Set targets and plan: Help achieve a particular corporate goal aligned with the organisation’s mission and values (such as aligning with the targets and goals of the Kunming-Montreal Global Biodiversity Framework (GBF)).

ISO’s 31000 risk management standards cover all types of risk and are applicable to all organisations regardless of their type, size, activities and location. It is intended for use by anyone who manages risks, rather than solely professional risk managers.

ISO’s management system standards define how an organisation can manage the interrelated parts of its business in order to achieve its objectives. These objectives can relate to a number of different topics, including product or service quality, operational efficiency, environmental performance, health and safety in the workplace and many more. The management system standards help organisations improve their performance by specifying repeatable steps that they can implement to achieve their goals and objectives. They can also help to create an organisational culture that engages in a continuous cycle of self-evaluation, correction and improvement of operations and processes, such as through heightened employee awareness, and management leadership and commitment.

ISO’s measurement and monitoring standards comprise a series of international standards that provide guidance and frameworks for effective environmental management. These standards cover various aspects of environmental management, including environmental policy, planning, implementation, monitoring and continuous improvement.

The Strategic Goals document describes the core concepts for measuring impact to contribute to the SDGs, both through the use of IRIS+ Core Metrics Sets and the IRIS Catalogue of Metrics.

Use this resource for the following Actions of Impact Management:

• Strategy: Create a Theory of Change from evidence within the IRIS+ Thematic Taxonomy.
• Identify: Discover other factors to consider, including impact risk.
• Measure, assess and value: Define what to measure in the context of the investment strategy, by accessing the IRIS+ Core Metrics Sets.
• Set targets and plan: Access third-party resources on targets.
• Implement: Develop strategies to achieve established social and environmental impact objectives.
• Monitor, learn and adapt: Assess progress towards the SDGs using relevant IRIS metrics and terminology.

The IRIS metrics are designed to support impact investors with measuring the social, environmental and financial performance of their investments. They can be used as part of the broader IRIS+ System for measuring, managing and optimising impact.

Use this resource for the following Actions of Impact Management:

• Measure, assess and value: Access usage and calculation guidance for the selected metrics.

The Integrated Thinking Principles are a set of guidelines promoting integrated thinking in corporate reporting. Integrated thinking encourages organisations to consider how financial, as well as environmental, social and governance (ESG) factors are interconnected and affect long-term value creation.

Use this resource for the following Actions of Impact Management:

• Communicate: Provide disclosures that explain how financial and non-financial factors are considered in decision-making processes and contribute to long-term value creation.

The Impact Protocol provides a step-by-step guide of how to analyse and manage a bank’s portfolio impacts, as per UNEP FI’s holistic impact approach and in alignment with the requirements of the Principles for Responsible Banking. The Protocol provides an overview of the impact management process as a whole and is complemented by other UNEP FI resources including the Impact Management Tool and the Thematic Target-Setting Guidance, which can be used to operationalise the Protocol.

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.