Guide for Funders to Assess and Value Impact

Guide for Funders to Assess and Value Impact

Investors and philanthropists hold the power to create large positive impact on society. Impact Institute is proud to publish the Guide for Funders to Assess and Value Impact. It provides impact investors and philanthropists with a sound impact assessment and valuation methodology. This includes step-by-step guidance on how to assess and value the impact of a potential funding opportunity.

The Guide builds on a detailed review of existing knowledge and frameworks and provides guidance on various topics such as:

  • Selecting relevant impacts
  • Forecasting and monetising impact
  • Aggregating results to metrics such as Net Present Value for impact
  • Assessing sensitivity and uncertainty and;
  • Reporting on results

With this open-source methodology, we hope to help funders assess funding opportunities with rigor and consistency. This is an important step, so that impact-driven funders may wield their financial power strategically and effectively to create positive social and environmental impact.

Priority areas

Banks

footprint assessments, sector deep dives, (double) materiality assessments, sustainable finance product development, impact and sustainability reporting

Impact investors

investment strategy and theory of change, impact due diligence, impact adjusted returns, portfolio impact insights, impact and sustainability reporting

Assets

ESG and impact-based asset allocation, fund and portfolio optimisation, (double) materiality assessments, impact and sustainability reporting

Insurers

footprint assessments, (double) materiality assessments, insurance product development, impact and sustainability reporting

Partnerships

We actively work with our clients and other partners to progress impact measurement across the financial sector. We are one of the co-founders of the Banking for Impact initiative, a coalition that came together to develop a harmonised quantitative approach to measuring impact, tailored to financial institutions.

The Netherlands Advisory Board on impact investing is an independent, non-profit organisation that aims to accelerate the growth and improve the effectiveness of the impact investing market.

The Erasmus Platform for Sustainable Value Creation is an academic think-tank at Rotterdam School of Management (RSM), Erasmus University Rotterdam, that collaborates with leading sustainability experts in the financial sector.

Publications

  • Leveraging Integrated Return Model for Investors Decision Making

    The model helps investors make smarter, impact-driven decisions that merge financial, social, and environmental returns – designed for a new…

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  • Scaling up the Beyond Chocolate initiative

    This paper reports the scalability and long-term risks and benefits of the Beyond Chocolate initiative, a programme seven members of…

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  • True cost of the cement, steel and chemical industries.

    In this report Commissioned by the Greens/EFA group, True Price performs a true cost assessment of the EU27’s cement, steel…

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  • Preliminary report on the value chains of mangos

    A report assessing the value chain of mangos sold by the Dutch supermarket Jumbo

    Download

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