Measuring Impact Investing With IRIS+
The Global Impact Investing Network (GIIN), a non-profit organization focused on increasing the scale and effectiveness of impact investing with the intention of generating a measurable social and environmental impact alongside financial returns, launched an impact measurement tool by the name of IRIS+ in 2019. Since then, it has become the generally accepted system for measuring, managing, and optimizing impact, achieving the goal GIIN set for it.
Following is what we shared about IRIS+ back in June 2019. Whether or not you are already familiar with the system, we think you’ll enjoy the back story.
IRIS+ was developed after an exhaustive process of consulting with 600 impact investors to address the challenges of insufficient comparable data and core metrics, fragmented approaches to impact investing, and a lack of implementation guidance.
“We have tracked over 150 different impact tools and that makes it difficult for interested parties to compare results across platforms,” said Amit Bouri, CEO of GIIN. “We hope to create a system like that of accounting’s GAAP (Generally Accepted Accounting Principles), where we can help stakeholders by reporting from the same metrics and standards across the board.”
We at EPOCH Pi have studied the work done by The Robin Hood Foundation on impact measurement in the philanthropy world as well as the efforts of The Rise Fund and KPMG in private equity to measure and report on impact. There are many others who have forged this path, but we are very pleased to finally settle on a measurement framework for communicating our clients’ social impact. While the field of impact measurement is nascent, we are excited to begin using the reporting framework of IRIS+ to further our efforts in communicating the impact our clients make in the world.
One of the problems is the enormous amount of work that is needed from our clients to measure impact through the lens of the United Nations Sustainable Development Goals (UNSDG’s). While there are many impact tools in various stages of development, we fully support and applaud GIIN’s efforts to create a common standard for measuring impact that can bring comparability, consistency, and reliability to reports generated in this sector.
“We believe that a better world can be created through business,” said Epoch Pi’s Co-Founder Lynn Carpenter. “As GIIN’S IRIS+ continues to be developed and adopted, it will help us communicate to investors the impactful and inspiring things that our clients are doing in a clear manner that is relevant and credible.”
About Epoch Pi
EPOCH Pi is a Certified B Corp and investment bank that serves purpose-driven companies, companies that exist to provide both financial and social returns. Impact companies range from providers of clean technology and sustainable agriculture to old-line manufacturing companies that create meaningful work environments, have positive cultures, and treat suppliers and other stakeholders equitably. Our services range from capital formation for growth companies to generating liquidity for existing shareholders. In every case, one of our criteria is the alignment of our client’s purpose and vision with those of the financial stakeholders. At EPOCH Pi, we have developed a set of unique, proprietary assessment tools that facilitate values and cultural alignment in corporate finance transactions. Learn more about our services here.