Impact-financial integration: a handbook for investors

Last updated: 2020

Guidance on impact-financial integration at the investment and portfolio level, developed by a collaboration of 13 investors. Includes examples.

Use this resource to:

  • Assess: Construct an expected impact rating using sections 1.3 and 2. Use Sections 1.5-1.8 and 3.1-3.2 to integrate impact alongside financial risk and return to inform investment decision-making.

Types of impact risk

Last updated: 2018

Guidance on types of impact risk. The IMP community of 2000+ practitioners identified nine types of impact risk, which are often relevant when managing impact. This content is now hosted by Impact Frontiers.

Use this resource to:

  • Assess: Use the nine types of impact risk as a checklist to identify the most common types are of impact that are considered.

COMPASS: The Methodology for Comparing and Assessing Impact

Last updated: 2021

Guidance that provides an analytical framework to compare impact performance, with a specific focus on variance and the extent of the change required to enable meaningful contribution toward impact.

Use this resource to:

  • Assess: Normalise measures of impact so that impact performance can be compared. This resource can also be used to determine how meaningful the contribution of the investor is.

CDP’s Disclosure System

Last updated: 2021

Tool for investors, companies, cities, states and regions to manage their environmental impacts. The CDP Disclosure System supports companies in making their environmental impact transparent to stakeholders, better understanding how they can reduce their impact, and act to become environmental leaders.

For organisations

Use this resource to:

  • Identify sustainability topics: Fill in CDP’s questionnaires to understand the relevant climate change, forests and water security impacts to measure, based on the organization’s size, sector, and geography.
  • Measure sustainability performance: Use CDP’s questionnaires as sets of environmental metrics.
  • Assess impact: Fill in the questionnaires to track change in performance over time. Each question is scored – some with reference to social or ecological thresholds – to help the organisation determine whether it is performing sustainably on that topic.
  • Disclose: Report to all stakeholders on climate change, forests and water security. The questionnaires provide a framework for companies to report environmental information to their stakeholders covering governance and policy, risks and opportunity management, environmental targets and strategy, and scenario analysis. Receive an A-D grading based on questionnaire responses.
  • Benchmark: Tool allows companies to benchmark their environmental performance against their industry peers and receive feedback on their progress each year. The information disclosed is also used by financial markets for stewardship and engagement, in investment research, new financial products, and global indices and ratings.

For investors and financial institutions

Use this resource to:

  • To be completed.

 

SDG Action Manager

Last updated: 2020

Tool designed to help organisations measure and manage their impacts in relation to the Sustainable Development Goals.

For organisations

Use this resource to:

  • Identify sustainability topics: Fill in the online questionnaire to understand the SDGs most relevant to manage, based on the organisation’s size, sector, and geography. The questionnaire draws from B Lab’s B Impact Assessment and the UN Global Compact’s 10 Principles. It was developed through research and public consultation and so provides an evidence-based starting point for identifying sustainability topics to measure.
  • Measure sustainability performance: Use the SDG Action Manager as a set of metrics. The questionnaire enables organisations to collect performance information on the SDGs that are most relevant to manage, based on the organisation’s size, sector and geography.
  • Assess impact: Fill in the questionnaire to track changes in performance over time. Each question is scored – some with reference to social or ecological thresholds – to help the organisation determine whether it is performing sustainably on that topic.
  • Benchmark: The self-assessment tool helps organisations compare performance with peers on each SDG or as a whole organisation.

For investors and financial institutions

Use this resource to:

  • Assess: Engage with underlying assets and support them in completing the SDG Action Manager Questionnaire. The multiple-choice, weighted question format helps underlying assets and their investors quickly judge whether performance on a topic is likely to be unsustainable or sustainable, and what they can do to improve.

GRI Topic-specific Standards

Last updated: n/a

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.

For organisations

Use this resource to:

  • Measure sustainability performance: Identify metrics to measure for each significant topic. The standards themselves provide guidance on selecting metrics to report. Using standardised metrics helps the organisation and its stakeholders compare performance with others.
  • Disclose: Report to all stakeholders on ‘material topics’ that reflect the organisation’s most significant impacts.

For investors and financial institutions

Use this resource to:

  • Identify: Refer to the Sector Standards as a starting point for identifying likely significant impacts.
  • Disclose: Report to all stakeholders on ‘material topics’ that reflect the organisation’s most significant impacts. The Sector Standards are a helpful starting point for identifying likely significant impacts.

Impact-Weighted Accounts Initiative Research

Last updated: n/a

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

For organisations

Use this resource to:

  • Estimate value created: Use research to learn about key considerations when monetising impact, using publicly available information on companies.

For investors and financial institutions

Use this resource to:

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

SDG Impact Seal and Assurance Framework

Forthcoming: Assurance criteria for demonstrating adherence to the SDG Impact Standards for Enterprises, Private Equity Funds or Bonds, and associated certification.

For organisations

Use this resource to:

  • Verify: Certify that an organisation’s systems and processes adhere to the SDG Impact Standards.

For investors and financial institutions

Use this resource to:

  • Assess: Review certifications from underlying assets to check their systems and processes adhere to the SDG Impact Standards.

Integrated Reporting Framework

Last updated: 2021

Reporting framework that provides principles-based guidance for organisations seeking to create an integrated report, containing both financial and non-financial information. The guidance is tailored specifically for private sector, for-profit companies, but the Framework can also be applied to the public sector and non-for-profit organisations.

For organisations

Use this resource to:

  • Integrate and act: Follow integrated thinking principles to improve the organisation’s understanding of the connectivity and interdependencies between the range of factors that affect an organisation’s ability to create value over time.
  • Disclose: Report to providers of financial capital on sustainability topics that are likely to affect value creation over the short-, medium-, and long-term.

For investors and financial institutions

Use this resource to:

  • Disclose: Report on sustainability topics that are likely to affect value creation over the short-, medium-, and long-term.

CDSB Framework for Reporting Environmental and Climate Change Information

Last updated: 2019

This reporting framework offers companies seven guiding principles and 12 reporting requirements to help prepare (financially) material and decision-useful environmental disclosures for the mainstream report. CDSB additionally offers topic-specific guidance for companies, such as on climate-related reporting and climate accounting.

For organisations

Use this resource to:

  • Integrate and act: Understand how to prepare environmental and climate change information in a way that connects to mainstream financial information.
  • Disclose: Report on financially material environmental and climate change information.

For investors and financial institutions

Use this resource to:

  • Assess: Understand the measurement and disclosure standards and guidance for organisations, so that investors can provide capacity to the asset to help adherence.
  • Disclose: Understand how underlying assets might prepare environmental and climate change information in a way that connects to mainstream financial information.