Universal Milestone: the Global Impact Investing Network’s Approach to Assessing Social Impact
Elena Avramenko
DOI 10.55140/2782-5817-2022-2-1-22-43
Management representatives and investors often ask: “Is there a unified, tested and widely spread methodology for assessing the social and economic impact of non-profit projects?” The question is legitimate, because each project has a broad, multifactor and not infrequently unique impact. How to fit all this diversity into a standard evaluation framework? And is it possible, by expressing the results of several projects in monetary terms, to obtain indicators that are comparable with each other? Turns out it is — with the help of a systematic methodology created by the Global Impact Investing Network.
Elena Avramenko
Over the last decade there has been a particular need for a standard methodology in evaluation of social projects. Of course, investors have long learns how to measure the quantitative results of a project: number of jobs, services provided, number of trained beneficiaries, etc. But for a full-fledged evaluation covering the full range of impact outcomes, a standardized and universally accepted methodology is needed. A first step in creating such a methodology was the UN Sustainable Development Goals (SDGs) metric sets, the GIIN Impact Investing and Reporting Standards (IRIS) and the Impact Management Project.
The first systematic methodology demonstrating a new approach to impact measurement was proposed by Global Impact Investing Network (GIIN). The organization was established in 2009 and is a large association of social investors around the world. It has over 2,000 members. The idea of creating a network capable of coordinating the efforts of social investors was first proposed by the Rockefeller Foundation. After a series of discussions, the idea evolved into GIIN. The founding members of GIIN now include: Oxfam and Shell Foundation, Royal Bank of Canada, UK Department for International Development, Dutch Ministry of Foreign Affairs, Big Society Capital, BNP Paribas, Credit Suisse, Deutsche Bank, JPMorgan Chase, Morgan Stanley, National Australia Bank, Standard Chartered Bank, UBS, International Finance Corporation, Omidyar Network, Bill & Melinda Gates Foundation, Rockefeller Foundation, Skoll Foundation, Ford Foundation, Our Future Fund, Accion, Acumen, Gray Ghost Ventures, Oikocredit, Root Capital, Triodos and others. Global Impact Investing Network is headquartered in New York, USA. The organization is primarily funded by the Rockefeller Foundation, but there is support from other investors as well.
GIIN's main areas of focus are:
• Advocacy for social impact investment.
• Networking of social impact investment market players.
• Creation of a knowledge base on the ImpactBase social impact investment market.
• Developing a methodology for social impact investing and impact assessment and standards (Impact Reporting and Investment Standards, IRIS).