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E&S and Impact

Impact Measurement

IFC’s mission is to work with the private sector in developing countries to create markets and opportunities for all. To achieve this, we apply financial resources, technical expertise, global experience, and innovative thinking to address developmental challenges. 

Similarly, for SME Ventures, measuring our results is critical to understanding how well the program is working.   The theory of change for SME Ventures follows and is measured by the impact and outcome indicators further below:

Background: Expected Outcomes & Impact from SME V Advisory Services
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Results Indicators

These indicators measure two key impacts resulting from the operations of the Fund: i) The US dollar quantum of Risk Capital committed to SMEs; and ii) Attributable increases in productivity of the portfolio SMEs, measured by increases in sales revenues and the number of people reached with goods and services.  Below we provide the table of indicators at a) impact and b) outcome levels.

Impact
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Outcomes
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The Global Impact Investing Network (“GIIN”)

The Global Impact Investing Network (“GIIN”) provides principles and guidance for recording results from impact investing.  GIIN and its IRIS system is widely recognized as a standard for results measurement.  In May 2019, GIIN launched IRIS+, a comprehensive system for impact investors to measure, manage and optimize their impact. IRIS+ reduces confusion, increases comparability, and makes it easier to communicate impact results.  Utilizing IRIS+, investors can identify evidence-based metrics that will be most relevant to their strategies and desired goals. IRIS+ enables clear and comparable data and takes the guesswork out of impact management. More detail can be found on the below link.

Principles for Responsible Investing

 

Principles for Responsible Investing (“PRI”) - Institutional investors regard the best long-term interests of investees and their immediate communities.  In this fiduciary role, investors believe that environmental, social, and governance (ESG) issues can affect the performance of investment portfolios (to varying degrees across companies, sectors, regions, asset classes and through time). Applying these Principles may better align investors with the broader objectives of society.  Therefore, where consistent, investors commit to the following details including: