IMM for impact investors | ANDE Impact Measurement Resource Hub

Best practices for IMM for impact investors include:

Align indicators with globally accepted standards, such as the GIIN or the Global Reporting Initiative (GRI).
Adapt indicators and measurement practices as necessary. Many impact investors feel “stuck” because existing standards do not perfectly fit their measurement needs – adaptation and customization is acceptable in order to produce usable data.
Consider the data burden on investees. Within an investment portfolio, earlier-stage businesses likely have limited capacity for IMM, both from a financial and human resource perspective. In this case, it is best to limit the number of indicators and ensure quality measurement over the quantity of indicators reported. If more in-depth evaluation or measurement is required, investors should cover these additional costs.
Promote IMM best practices within a portfolio. Impact investors can help companies integrate IMM into their operations as their businesses grow. Consider paying for IMM consultants, training, or data management platforms for portfolio companies as a form of technical assistance.
Choose sector-specific KPIs. Impact investors working in multiple sectors should try to select 2-3 indicators that can be applied across investments in individual sectors. For example, summary indicators for an environmental investment portfolio can be greenhouse gas mitigation, amount of waste redirected from landfills, and number of farmer beneficiaries. Health summary indicators can include number of beneficiaries reached, amount of vaccines distributed, or patient outcomes.

Resources about IMM for impact investors

Global Reporting Initiative (GRI)

GRI is one of the most well-regarded standards, measuring sustainability, diversity, labor and management relations, and indirect economic impacts. GRI is presented as a series of “modular” standards which can then be customized based

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IFRS Sustainability Standards

International Financial Reporting Standards Foundation (IFRS)

The International Financial Reporting Standards (IFRS) are long-held international accounting standards. IFRS has now expanded to include sustainability reporting standards and other impact assessment standards, with the aim to encourage

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Integrated Reporting Framework

The International Financial Reporting Standards Foundation

As a supplement to the Framework, this Guide helps report preparers develop a custom-fit transition plan to integrated reporting. Like the Framework, the Guide is written in the context of private sector, for-profit companies of any size,

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IRIS+ Catalog of Metrics

Global Impact Investing Network (GIIN)

IRIS+ is a comprehensive indicator repository developed by the Global Impact Investing Network (GIIN). Covering multiple sectors, the metrics have been independently verified and produced with input from industry stakeholders. In addition,

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Principles for Responsible Investment (PRI)

United Nations

PRI is affiliated with the United Nations Environment Programme (UNEP) and the United Nations Global Compact. In addition to providing standards to shape impact and socially aware investing, PRI is a signatory organization of multiple

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