Measuring Social, Financial and Environmental Performance

basheddockΛογισμικό & κατασκευή λογ/κού

21 Φεβ 2014 (πριν από 3 χρόνια και 8 μήνες)

80 εμφανίσεις

ANDE
-

Summer 2011

Aspen Network
of

Development Entrepreneurs

Measuring Social, Financial and Environmental
Performance


ANDE
-

Summer 2011

Agenda


Why measure?


What to measure?


How do you collect what you measure?


Analyzing measurements


Discussion

ANDE
-

Summer 2011

SGB

Small and growing businesses (SGBs) are commercially
viable businesses, typically from 5 to 250 employees,
that have strong potential for
growth

--

and thus for
creating economic, social and environmental benefits

SGB

SGB

SGB

SGB

SGB

ANDE
-

Summer 2011

SGBs

Will Create

Impacts



Job Growth


Wage Growth


Revenue Growth


Net Income Growth


New Products


Customers Served


Suppliers Supported

Economic
Benefits

Steady jobs

Increased incomes

Wealth creation

Social

Benefits

Social goods (glasses)

Social infrastructure (toilets)


Environmental
Benefits

Reduce deforestation

Improve air quality

(LPG)

Leading To:

The Promise of SGBs

ANDE
-

Summer 2011

Financial Flow Schematic of SGB Sector

Social impact
investment

Commercial
investment

Grants for capacity
building

Blended capital
investment

Capacity building
only provider

Capital and capacity
building provider

Capital only
provider

Small and growing
businesses

Microfinance
provider

Traditional private
equity provider

Medium

businesses

Microfinance
clients

SGB
Sector

Private
Equity

Microfinance

5/$25k

250/$2m

ANDE
-

Summer 2011

55
Capacity Development
Providers

36
Investors

25
Research,
Academic and
Corporate
Institutions

20
Foundations

5

Other*

*Includes individual and strategic partner members

142 ANDE Members

ANDE
-

Summer 2011

Why Measure?

ANDE
-

Summer 2011

Some reasons . . .


Provide greater legitimacy to individual performance reports


Validate that SGBs can generate tremendous impact


Eradicate inconsistent definitions across investments and
throughout the sector


Improve performance of investees and funds


Increase the credibility of the sector



Conclusion: Measuring social, financial and environmental
performance can help increase impact



ANDE
-

Summer 2011

What to measure?

ANDE
-

Summer 2011

The
Impact Reporting and Investment
Standards (IRIS)
is a common
framework for defining, tracking, and
reporting the
social and
environmental performance
of
impact investments.

ANDE
-

Summer 2011

Full Time Employees

Company A

Company B

Company C

Full Time Employees

Employees

Same term,
different
definitions

Same definition,
different terms

Without IRIS

Full Time Employees

Company A

Company B

Company C

Full Time Employees

Full Time Employees

Consistent terms & definitions across companies

With IRIS

ANDE
-

Summer 2011

IRIS Framework

The IRIS

Framework

ANDE
-

Summer 2011

A Meta Standard

Operational Impact

Product Impact

Financial
Performance

Examples of Frameworks Leveraged


International Financial Reporting Standards (IFRS)


U.S. Generally Accepted Accounting Principles (GAAP)


Microfinance Information Exchange (MIX)


Community Development Finance Data Project (CDP)


International
Labour

Organization (ILO)


Organisation

for Economic and Cooperation and
Development (OECD)


Global Reporting Initiative (GRI)


B Lab


Certification schemes (FLO, FSC, SAI, etc)


Sector
-
specific protocols (SPTF, NCIF, etc)


Proprietary systems (IFC, WRI, etc)

ANDE
-

Summer 2011

IRIS Data Repository

Performance
Data Repository


A standard set of social and
environmental definitions and
metrics available as a public good




Developed by an objective
governance process and with broad
participation


Hub for performance data
reported using standards



Data submitted anonymously



Utilize aggregated data for
benchmarking and to capture
industry scope

ANDE
-

Summer 2011

Measuring Impact at ANDE

Create
consistency

Communicate

Impact

Peer Education

Support members in
aligning and adopting
IRIS

Maintain a core set of
indicators (ANDE Core
Metrics) to develop
performance
benchmarks

Collect data from
members on annual
basis to produces
sector level
data
reports
on the impact
small and growing
businesses

Metrics From the
Ground Up Workshop


Metrics Working Group

ANDE
-

Summer 2011

ANDE Core Metrics

Demonstrate the growth and sustainability of SGBs

Earned Revenue

(IRIS ID
FP5958)

Full Time Employees

(
OI3160)

Full Time Employee Wages (
OI5887
)

New

Investment Capital (
FP8293
)

GHG Emission
s (
OI1479
)

Determine the Area of Impact for your Portfolio or each SGB
(choose one or more)

Clients (
PI7094
)

Products Sold

(
PI1263
)

Suppliers (
PI9566
)

1

2

Core Metrics
Plus For organizations seeking to speak more
deeply to their
impact


Report in conjunction with the area of impact you are reporting on to more deeply speak to
reaching target populations or responding directly to the needs of a community.

Example:

Impact Objective: Supporting Female Access to Jobs

Sector Focus: Agriculture

ANDE Core Metric: Suppliers

ANDE Core Metrics Plus: Supplier Individuals: Female (PI1728)


3

ANDE
-

Summer 2011

Impact Investing Infrastructure

STANDARDS

SYSTEMS

DATA
WAREHOUSE

RATINGS

Definitions and
metrics

Performance
management

Repository and
aggregator

Assessment tool

GAAP

SAP

EDGAR

Morningstar

IRIS

Pulse

IRIS
Repository

GIIRS

FINANCIAL
REPORTING

IMPACT
REPORTING

ANDE
-

Summer 2011

Data collection tools

ANDE
-

Summer 2011

ANDE
-

Summer 2011

Pulse

A management information system to track
environmental
,

social

and

financial

performance

-
Data collection and reporting
tool

-
Web
based

-
Application that plugs into
salesforce.com

-
Pulse (the application) is free



ANDE
-

Summer 2011

Pulse and IRIS


You can track both IRIS and unique metrics in Pulse


Pulse and IRIS partner to ensure Pulse has latest
versions of IRIS


Simplified reporting to enable contribution to IRIS data
repository


ANDE
-

Summer 2011

Collecting and Assessing

ANDE
-

Summer 2011

is powered by

a 501(c)3 non
-
profit whose
mission is to harness the power

of business to solve social and
environmental problems

ANDE
-

Summer 2011

Capital to Impact

Social and environmental performance ratings


3 Products



Company Ratings



Fund Ratings



GIIRS Analytics

ANDE
-

Summer 2011

Company Ratings Process

Assessment

Review &
Verification

Ratings
Report



Register company



Complete the
assessment (1.5


4
hours)



Complete
Disclosure
Questionnaire



Complete optional
Metrics page



Survey review
with GIIRS Team
Member (1
-
2
hours)



Document
Verification
(conducted by
Deloitte)



Company
receives Rating
Report



Company
attaches optional
Management
Letter

ANDE
-

Summer 2011

Company Assessment

Contents


Governance



Workers



Community



Environment


Social Enterprise
Models
infused into each area



Disclosure Questionnaire

ANDE
-

Summer 2011

Supplement to Standard Assessment

ANDE
-

Summer 2011

Assessment Structure

40 Versions

of Assessments

Coming Soon:

Industry Addenda

ANDE
-

Summer 2011

25 Pioneer Funds

North American
Pioneers

Emerging Markets
Pioneers

ANDE
-

Summer 2011

GIIRS
Analytics: Fall 2011

ANDE
-

Summer 2011

Putting it Together: IRIS Data
Report

ANDE
-

Summer 2011

IRIS Data Report

32


Data from
463

companies across
6

funds and 1 technical assistance
provider


Process included alignment of
performance measures and review
of data for submission to the
database


Data from
1,931

MFIs


Data based on alignment and
integration work with the MIX







Microfinance


Institutions




ANDE
-

Summer 2011

Overall Statistics

ANDE
-

Summer 2011

Percentage of Profitable Organizations

* Companies showing a positive net income in the last year reported

Note: Financial Services sector includes data from the MIX; regional totals do not

ANDE
-

Summer 2011

Energy Sector: Profitability by Region

Note: Based upon last reported year of data: 2009 or 2010

ANDE
-

Summer 2011

* Companies showing a positive EBITDA in last year reported

Analysis by Social Impact Objective

ANDE
-

Summer 2011

Note: Purchasing Power Parity (PPP) based on 2009 World Bank PPP conversion rate; 2008
-
2010 data

Agriculture Sector: Social Indicators

ANDE
-

Summer 2011

Online Resources

http
://
www.aspeninstitute.org/policy
-
work/aspen
-
network
-
development
-
entrepreneurs/metrics
-
impact




http
://
iris.thegiin.org/iris
-
standards





http://www.giirs.org
/





http://
www.app
-
x.com/pulse

http://foundation.force.com/home


ANDE
-

Summer 2011

Thank You


lindsey.yeung@aspeninst.org

www.aspeninstitute.org/ande