The Global Impact Investment Network (GIIN) and the International Finance Corporation (IFC) have united to ‘harmonize’ impact reporting by producing a set of high level impact indicators, aiming to entice even more investors to measure their impact.
The Joint Impact Indicators (JII) will combine metrics from the Harmonized Indicators for Private Sector Operations (HIPSO) and the IRIS Catalogue of Metrics; two sets of data points that the IFC says are “the most used by impact investors”.
It’s hoped the JII will reduce the burden being felt by companies who are being asked to report on an increasing array of data points, with the end goal of producing a set of data points that are comparable across industries and portfolios.
“Rigorous, credible impact measurement and management are fundamental to the integrity of the impact investment market,” said Amit Bourit, CEO of the GIIN. “The JII, which complements the GINN’s IRIS+, will increase the understanding of impact performance. 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. This is crucial, because the challenges the world faces are far too urgent for capital to underperform.”
It’s a continuation of the progress being made to identify a core set of indicators that can help define a minimum scope for impact measurement and reporting for all impact investors.
“These indicators are testament to the excellent leadership, technical expertise, and strong
collaboration of all partners involved,” says Issa Faye, Director of Sector Economics and Development Impact, IFC. “While we recognize there is much work to be done to fully harmonize impact measurement and reporting, this is an important step forward for the industry.”
The IFC, is the World’s Bank’s global development institution focussed on the private sector, launched the Operating Principles for Impact Management in 2019, and they’ve been adopted by nearly 120 financial institutions from 30 countries managing over $360bn in impact assets. The JII is inline with the Operating Principles.