Impact Measurement Norms for Powerful Results November 18, 2020 - PowerPoint PPT Presentation

Impact Measurement Norms for Powerful Results November 18, 2020

Who we are • Evaluation Executives • Social Sector Practitioners • Philanthropy Professionals • Strategic Learning Enthusiast Veronica Olazabal Jane Reisman, Ph.D Sr. Adviser & Director, The Rockefeller Sr. Adviser, Impact Measurement & Foundation Management

Session Roadmap Where did we Why we are here come from What does “good” Where are we look like today going

Why we are here • Prevent impact washing • Ensure impact integrity • Promote alignment around impact measurement and management (IMM) norms Global Handbook of Impact Investing: Solving Global Problems Via Smarter Capital Markets Towards A More Sustainable Society 1st Edition by Elsa De Morais Sarmento, R. Paul Herman

INVESTING FOR GOOD Source: Sonen Capital

Where did we come from Where is the impact in impact investing? • Focused at the output level • Fragmentation of approaches • No comparability Key takeaway: heading down the path of impact washing

Understanding the Tent Over the last ~five years, there has been a concerted effort to address fragmentation and underdeveloped approaches and methods in IMM

Source: Impact Investing Institute, 2020

What does “good” look like today Norms and Case Examples

Key Features of an Impact Management and Measurement Approach Over the last five years, market leaders have emerged as best in class for managing and measuring impact, decreasing fragmentation and enabling scaling of impact investing Description Industry adoption (% of GIIN Resource Standard members aligned to standard 1 ) UN’s 17 sustainable SDGs https://sustainabledevelopm 73% ent.un.org/sdgs development goals for 2030 End to end system GIIN’s for IMM https://iris.thegiin.org/ 46% IRIS+ Impact Guiding framework https://impactmanagementpr Management to assess holistic 32% oject.com/ impact picture Project (IMP) IFC – led Operating Broad principles and https://www.impactprincipl 18 Principles for Impact processes to guide es.org/ % impact management Management Source: Based on GIIN’s Annual Impact Investor Survey 2020

Impact Measurement and Management (IMM): Must-haves Key features of an impact measurement and management approach: 3 specific development for advancing impact investing through IMM • Adoption of Impact Management as both, a philosophy, and an approach, to managing social and environmental performance alongside financial performance; and specifically, an appreciation of the 5 dimensions of impact to define impact goals and metrics. • IRIS+. A move from an inventory of metrics about outputs toward an end-to-end system for measuring and optimizing outcomes and impact. • Alignment to SDGs. The application of The United Nations Sustainable Development Goals (SDGs) has had a significant effect on creating a standardized way to clarify, communicate and manage impact intentions. Everything we do affects people and the planet. Managing impact means figuring out which effects matter – and then trying to prevent the negative and increase the positive. – Impact Management Project 11 11

Impact Management Project’s Five Dimensions of Impact

The GIIN’s IMM Journey Over the Last 10 Years Since IRIS 1.0 in 2009, IRIS has evolved over the years increasing coverage and alignments with other standards and is today the generally accepted system to measure, manage, and optimize impact. IRIS 1.0 IRIS 2.0 IRIS 3.0 IRIS 4.0 IRIS+ Launch 2009 2010 2014 2016 2019 2020 2021 BEFORE: IRIS = Catalog of Metrics TODAY: IRIS+ = IMM System • Choose your own adventure standardized • Core Metrics Sets (key metrics sets by theme) • metrics Evidence base + context • Catalog only (no evidence base, key sets of • Practical how-to guidance • metrics by theme, or guidance) Best-in-class tools • Catalog of metrics (5.1) • Ongoing thematic and guidance development

IRIS+ | Key Features IRIS+ is a system to measure, manage, and optimize impact – helping investors to translate impact goals into real results. Core Metrics Standards Practical Set Evidence Base Guidance Alignment A Public Good to measure to inform theory of to improve IMM to standardize to provide access progress towards change, anticipate practice and impact reporting to all impact impact goals expected impact impact outcomes investors across the industry

Sustainable Development Goals

Case Example: Nuveen

Case Example: Toniic Sustainable Development Goals Mapped by Asset Classes (2017)

Where we are heading

Embedding Listening Across IMM and the Investment Lifecycle ▪ Ensure listening throughout supply chains, especially between grantees and end consumers ▪ Ensure accountability of ▪ Involve end-communities and public policy solutions grantees in measuring success of major commitments ▪ Confirm priorities: ▪ Listening sessions ▪ Engage grantees in strategy development ▪ Embed community-level feedback into ▪ Create advisory board(s) preliminary assessment of programmatic success

Transparency, verification and Operating Principles for Impact Management assurance of impact data Source: https://www.impactprinciples.org/principles and evidence

Considering “New” norms for managing impact Covid has changed how we manage impact--biasing approaches that generate rapid and timely insights from a distance MOBILE REMOTE SENSORS GEOSPATIA ”BIG” DATA L DATA • Digital data collection • Spatial and Satellite • Sensor data such as • Administrative (e.g., Poverty Imagery (e.g., Atlas.ai, weather patterns, air Census data, StopLight, Commcare, AidData, Terrago and water quality insurance data (e.g., Edge) SocialSuite) (e.g. Berkeley Air Socially Determined, • Geographic • SMS (e.g., Monitoring Group, Atlas.ai) • Human-generated text coordinates and Echomobile, Magpi, Mobosens, Rainforest and sentiment data raster data (e.g., Textit) Connection) • Mobile surveys and DHIS2, Mango, ESRI) (e.g. Twitter, interactive voice Facebook, Google) • Human-generated • Crowdmapping data response (IVR) (e.g., biometric (e.g., (e.g. Ushahidi, 60 Decibels, Viamo, Wearables, FitBit, Crowdspot, GIS SurveyCTO) credit card Cloud) companies) In action: Rewiring how we measure impact in a Post-Covid-19 world Using Real-time data to adapt in moments of crisis Accelerating the use of remote surveys during times of crisis 15

In closing…

Questions?

Appendix

IRIS+ | Designed to Solve Key Needs in IMM Consistent Core metrics for Streamlined best implementation of clear and in class resources norms and principles comparable data 200+ tools, resources, and methods Broad agreement on norms, To get to benchmarkable data, claiming to support impact analysis and conventions, values, principles. IRIS+ investors require core, standardized management. IRIS+ streamlines the provides the “how to” to IMM norms metrics to track and compare results. best in class resources according to and conventions. IRIS+ provides Core Metrics Sets for impact themes and goals . data clarity, consistency, and comparability.

IRIS+ | Global Use IRIS+ has been widely adopted across the world since launch in May 2019 How Many Where Who +20,000 subscribers +13,000 unique users +8,000 organizations INVESTOR BREAKDOWN • 70% of top AM, Pension Funds & Inst. Investors by AUM (38 of 54) • 85% of HIPSO DFIs (23 out of 27)

The Rockefeller Foundation Case Structuring our investments to drive impact by design Asking the right questions at the right time helps optimize for social and environmental performance, manage sustainability and prevent harm Source: Zero Gap Fund, Annual Impact Report https://www.rockefellerfoundation.org/wp-content/uploads/2020/09/Zero-Gap-Fund-2019-Annual-Update_Pu blic-Facing.pdf