The impact investing industry is growing – and at a very fast pace. In its 2019 Annual Impact Investor Survey, the Global Impact Investing Network (GIIN) estimated the size of the market to be USD 502 billion.
The social impact community broadly agrees on the importance of measuring both positive and negative impact and it is also in agreement over the fact that measuring impact promotes decision making based on data instead of emotion.
Furthermore, impact measurement increases the industry’s credibility and higher credibility results in more stakeholders being attracted to the industry.
But how does one go about measuring impact?
We spoke with Leticia Emme, Lead Developer of IRIS+ and an expert in impact measurement and management. Leticia began by stating that, in terms of theory, the community agreed on frameworks, which include, for example, the Sustainable Development Goals (SDGs) and the five dimensions of impact. However, she went on to explain that an in-depth investigation of impact measurement and management conducted by the GIIN had identified three specific challenges faced by impact investors.
- Firstly, a lack of guidance on how to implement the most common standards and frameworks, such as the SDGs and the five dimensions of impact.
- Secondly, a lack of core metrics and comparable data.
- Thirdly, confusion and fragmentation. The rapid growth experienced by the industry has resulted in new frameworks and tools being published every day, making it difficult for impact investors to decide what is relevant to their needs and know what is best practice.
In order to solve these three challenges, GIIN launched IRIS+, a system for measuring, managing, and optimising impact. The GIIN developed IRIS+ together with the input of 850 stakeholders from different industries, including social businesses, foundations, impact investors, public institutions, and international as well as academic organisations. Although IRIS+ is designed mainly for impact investors, the system is a public good, meaning it can be used by all stakeholders in the industry.
From IRIS to IRIS+ – the IRIS+ system is built on a decade of experience. No longer just a catalogue of metrics, IRIS+ is a complete system for measuring and managing impact.
IRIS+ offers Core Metrics Sets, their whole catalogue of metrics being aligned with the SDGs, a database with research and investigations, recommendations for best-practice resources and tools, and advice on how to implement impact management. The system is easy-to-use, practical and free.
IRIS+ was launched in May 2019 and already has more than 24,000 users.
The system is also aligned with more than 50 standards, frameworks and conventions. Whether you are using other standards or your own for impact measurement and management, IRIS+ will be a helpful tool.
Anyone can use it, whether you’re used to speaking in terms of the SDGs or not and regardless of whether your preferred topic of conversation is health, education or the environment.
The great thing about IRIS+ is that it makes measuring impact simple, allowing you to spend your valuable time on other things. This is a tool that will make your life easier. As a user, you simply select what type of organisation you represent, enter your objectives, and the system will give you a Core Metrics Set.
Users can also find information on how to measure impact and answers to questions, such as what to do once you have a Core Metrics Set, how to measure these key indicators and how to implement them into their decision making process.
IRIS+ facilitates the implementation of the Core Characteristics of impact investing identified by the GIIN, which serve as a definition for true impact investing.
IRIS+ promotes the impact investing industry, standardises language and knowledge across the sector and helps us turn talk into action.
