Читаем Позитивные изменения. Том 2, № 1 (2022). Positive changes. Volume 2, Issue 1 (2022) полностью

Позитивные изменения. Том 2, № 1 (2022). Positive changes. Volume 2, Issue 1 (2022)

Clustering is the process of dividing and grouping impact outcomes into segments that enable a responsible and meaningful assessment of performance. Given the wide range of factors that determine impact performance, a single investment may belong to several distinct clusters.

Impact performance analysis results can be grouped or segmented in different ways, each of which provides insights into one or more of the key decisions underlying investment strategy, choice, investment management and exit. By segmenting the results into different categorical variables describing the investment context (Section 2.1), such as investment instrument or business stage, investors gain insight into the possible relationship between such factors and the resulting impact.

STEP 4. DRAWING CONCLUSIONS

This step gives investors the opportunity to use the analysis to make key decisions related to investment strategy, selection, management and exit. Let's look at how this works.

Some types of analysis can be used to inform investors about impacts and changes in investment strategies.

The methodological process of bringing the results to the investment level, reviewing the outcomes and grouping or splitting the results helps investors better understand the impact and performance of their own portfolios, compare them to peers and also assess how performance varies from one segment to another. By looking at this information together with risk, return and time horizons, a number of questions can be answered and therefore inform decision-making at various stages of the investment process. At the same time, investors can improve the quality and usefulness of their internal reporting and public disclosure of impact information.

Some types of analysis can be used to inform investors about impacts and changes in investment strategies to optimize impact outcomes. With an evidence base, investors can identify future strategies more effectively by grouping outcomes by variable and better understanding the links between strategy/investment framework and impact outcomes.

Investors can use historical information about impact performance to pre-screen, due diligence and select investments. This understanding is further enhanced by segmenting or filtering outcomes according to strategic objectives or impact objectives.

By comparing their own current normalized impact performance against similar past performance, investors can gain a deeper understanding of the strengths and weaknesses of their performance. This information allows investors to assess impact outcomes in real time and identify areas that need additional support from investees, such as technical assistance or course correction measures to increase the likelihood of investees achieving a given set of impact outcomes.

By analyzing the relationship between normalized impact outcomes and post-exit financial returns, the investor can track which market segments have seen positive or negative performance correlations and what level of target returns can be expected in the future. This analysis strengthens the investor's strategy and creates more realistic expectations for the future.

GIIN's socio-economic impact assessment methodology gives investors greater opportunity to integrate social and environmental factors into their decision-making process, along with consideration of risk, rate of return and time horizons. Using the methodology, investors can assess the potential impact of a project, optimize and adjust the course of action and reduce the risk of subjective evaluation of the outcome.

By applying comparable impact information to each scenario, investors are better able to shape their strategies and allocate funds to ensure the right impact through the provision of capital and engagement. This practice will allow investors to realize the full potential of their capital for change.