Impact Measurement - Durreen Shahnaz

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    Impact Measurement

    andReporting Standards

    Prof Durreen Shahnaz

    January 2011

    www.asiaiix.com

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    Clean energyFood security

    Fair trade

    BOP goods &services

    Housing

    Insurance

    Transportationinfrastructure

    MicrofinanceHealth

    Water / Sanitation

    Telecom

    Environment

    Media

    Education

    SMEs

    PovertyAlleviation and

    SustainableDevelopment

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    SocialEnterprises

    ImpactInvestors

    IMPACTINVESTMENTE XCHANGEASIA

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    Enterprisesnot ready tolist?

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    Capacity-Building for Social Enterprises

    IIXs not -for-profit affiliate

    Social Enterprise capacity-buildingSocial impact assessmentsMarket readiness assessments

    Financial and social impact reportingHelps SEs meet IIX eligibility criteria

    Asia-focused researchSocial Enterprise mappingSocial impact measurementRegional regulatory researchImpact Investor mapping

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    Impact Investment Success Linked to..

    ImpactInvestmentExchange

    Asia

    Buy-in fromStakeholders

    InvestorAcceptable

    SocialMeasurement

    InvestmentReadiness

    Of SE

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    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

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    IRIS Impact Reporting and Investment Standards

    A common language for social and environmental impact

    1. Descriptor indicators

    2. Key financial indicators3. Operational indicators

    4. Sector-specific indicators

    Agriculture and Artisanal

    Energy, Water, and EnvironmentEducation

    Community Development Finance

    Healthcare

    Microfinance

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    GIIRS

    Developed in a collaborativefashion

    Buy-in from influential industryplayers

    Basis for company and fundcertification

    Being tested by 25 partnerfunds

    Global Impact Investing Rating System Transparent, standardized, low cost rating system

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    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

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    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 7.04Training activities 85%

    Price premium for certification 4%

    Local sourcing 4%

    Wage income for workers 6%

    Charitable work locally 1%

    Environment 0.7%

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    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

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    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!

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    IMPACTINVESTMENT

    E XCHANGEASIA

    Thank you!

    [email protected]

    http://www.asiaiix.com/http://www.asiaiix.com/