GIIRS: Rating and analytics for impact investing

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You Be the Judge October 23, 2012

description

2012 Social Finance Forum, Workshop: "Getting into GIIRS"

Transcript of GIIRS: Rating and analytics for impact investing

Page 1: GIIRS: Rating and analytics for impact investing

You Be the JudgeOctober 23, 2012

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is powered by

a 501(c)3 non-profit that supports the world’s leading entrepreneurs using business to solve social and environmental problems

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What are you passionate about?

Fair

Trade

Local

Employee Ownershi

p

Green

Diversity

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What does impact mean to you?

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What does it mean to invest with impact?

Impact investments are investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return.~The GIIN

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Ecosystem

Impact Investin

g

Entrepreneurs

Fund Mangers

Advisors

Exchanges

Incubators &

Accelerators

Investors & Investor

Associations

Banks

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The Invisible Hand

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• Analog = GAAP or IFRS• IRIS is a set of standardized metrics that can be used to describe an organization’s social, environmental, and financial performance

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GIIRS Ratings & Analytics

• Analog = S&P • Ratings, data, research, &

analytics• Largest database of social &

environmental performance data for private companies

• Only ratings product focused on impact investing that is:– Available cross-sector, geography, &

company size

– Transparent, comprehensive, independent, & verified

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Why Ratings & Analytics Matter To Companies, Funds, & Investors

1. 3rd Party Validation

2. Collecting & verifying impact data

3. Benchmarking & reporting performance to investors

4. Improving impact performance

5. Conducting due diligence

6. Fundraising 

Data Collecti

on

Ratings

Analytics

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How GIIRS Approaches Measuring Impact

• Comprehensive• Comparable• Scalability & Action-Oriented• Leverages 3rd Party Standards• Education & Management Tool• Transparent• Dynamic

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A Standard Is Only As Good As Its Governance Process …

Continue

Feedback

Collection

SAC Approve

s Changes

Private Beta

Public Beta

New Version Release

2-year cycle

Current Version =

3.0

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Company Assessment

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Company Assessment

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Verification: Garbage In, Garbage Out

Review Call Background Check

Documentation Review

Onsite Review

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Ratings

Data Collecti

on

Ratings

Analytics

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Analytics

Data Collecti

on

Ratings

Analytics

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GIIRS in CanadaFunds, Partners,

& InvestorsCompanies

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• Hypothetical: Looking for project finance

• Certified B Corporation

Water Power Group develops community-based & community invested, carbon positive small hydro projects under the Ontario Feed-In-Tariff program.

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• Hypothetical: Raising series A

• Has both a retail and a commercial product

Puralytics has pioneered an entirely new photochemical technology for water purification. Powered by the sun or LEDs, the Puralytics process effectively destroys the broadest range of contaminants without creating a hazardous waste disposal problem.

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You Be the Investor

• Which company would you invest in based upon the information in the GIIRS ratings reports?

• What other information about the company’s impact would be useful for you to have to help you make an investment decision?

• You are focused on investing in companies that improve the environment & serve the poor

• You are a financial first investor

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Capital To Impact

Impact Investi

ng

Reducing Inequality

Strengthening

Communities

Restoring the

Environment

Providing Quality Jobs

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Please contact Beth Richardson at [email protected] with

questions