Impact Measurement and Reporting Standards
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Impact Measurement and Reporting Standards Prof Durreen Shahnaz January 2011 www.asiaiix.com The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use. The countries listed in this paper do not imply any view on ADB's part as to sovereignty or independent status or necessarily conform to ADB's terminology.
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www.asiaiix.comImpact Measurement and Reporting StandardsProf Durreen Shahnaz January 2011The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use. The countries listed in this paper do not imply any vie
Transcript of Impact Measurement and Reporting Standards
Impact Measurement and
Reporting Standards
Prof Durreen Shahnaz
January 2011
www.asiaiix.com
The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use. The countries listed in this paper do not imply any view on ADB's part as to sovereignty or independent status or necessarily conform to ADB's terminology.
Clean energy
Food security
Fair trade
BOP goods & services
Housing
Insurance
Transportation infrastructure
MicrofinanceHealth
Water / Sanitation
Telecom
Environment
Media
Education
SMEs
Poverty Alleviation and
Sustainable Development
Social Enterprises
Impact Investors
IMPACTINVESTMENTEXCHANGE ASIA
Enterprises
not ready to
list?
Capacity-Building for Social Enterprises
IIX’s not-for-profit affiliate
Social Enterprise capacity-building
Social impact assessments
Market readiness assessments
Financial and social impact reporting
Helps SEs meet IIX eligibility criteriaAsia-focused research
Social Enterprise mapping Social impact measurement Regional regulatory research Impact Investor mapping
Impact Investment Success Linked to..
ImpactInvestment Exchange
Asia
Buy-in from Stakeholders
Investor Acceptable
Social Measurement
InvestmentReadiness
Of SE
Bangladesh
• Rich & diverse NGO sector since 70s
• 26,000 officially registered NGOs
• Large NGOs enjoy wide donor support: BRAC, Grameen, ASA
• NGOs now create market oriented entities: Aarong, BRAC dairy, Probotona, WasteConcern
• Emerging private entities with social orientation: Grameen Danone, Grameen Shakti, Hatey Bunano, Cell Bazaar, Kazi Tea
• Regulatory framework lagging, growth capital scarce for SMEs
Impact Measurement
• One of the greatly discussed issues recently
• Still no widely accepted standardized methodology
• Even less so for Social Enterprises (SEs) in Asia
• Our contribution– We tested methods for SEs in Asia
IRIS
• Impact Reporting and Investment Standards
– A common language for social and environmental impact
1. Descriptor indicators
2. Key financial indicators
3. Operational indicators
4. Sector-specific indicators
Agriculture and Artisanal
Energy, Water, and Environment
Education
Community Development Finance
Healthcare
Microfinance
GIIRS
• Developed in a collaborative fashion
• Buy-in from influential industry players
• Basis for company and fund certification
• Being tested by 25 partner funds
• Global Impact Investing Rating System
– Transparent, standardized, low cost rating system
SROI
• Valuation instead of measurement / rating
• Wide support and many applications to date
• Possible to integrate with IRIS
• Translates impact into financial language
• Social Return On Investment
– Monetizing the impact of an organization
The SROI NetworkAccounting For Value
Kazi Tea & Tea EstateOrganic tea farm
Panchagarh, Bangladesh
GIIRS: 63.7%
Governance and Leadership 87%
Community 74.7%
Employees 65.2%
Environment 70%
Consumers 40%
SROI: 0.14 – 7.04
Training activities 85%
Price premium for certification 4%
Local sourcing 4%
Wage income for workers 6%
Charitable work locally 1%
Environment 0.7%
Results
• GIIRS:
– Higher scores for environmentally focused SEs
– Lower scores for MFIs and education initiatives
• SROI:
– Higher scores for education / training initiatives
– NOTE: One-year timeframe on valuation; environmental returns thus low
From Ideas to Action
• Shujog: Market readiness and impact assessment, capacity building workshops, research
• Impact measurement: Err on the side of simplicity
• IIX: Platforms for channeling private
capital for sustainable development
• Buy-in from investors and intermediaries
• Get involved!
