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

  • CSRD Best Practices Raport voor Ministerie van Economische Zaken

    2024 CSRD Best Practice Rapport: Lessen van de beste jaarverslagen uit 2023 die de CSRD nu al in de praktijk brengen

    Lessen van de beste jaarverslagen over duurzaamheid het boekjaar 2023 zijn door Impact Institute samengebracht in een uniek rapport. Het…

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  • Singapore Management University: Biodiversity Impact of a Global Portfolio, Strategies and Insights

    The paper outlines the impact of financial institutions and investors on biodiversity, and how it can become a financial risk…

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  • Triodos Bank Impact Report 2024

    Triodos Impact Report 2024: Pioneering Impact in Energy and Housing

    Triodos Bank publishes a new industry blueprint for measuring the real impact of energy and mortgage finance

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  • Like-a-Pro Project - True cost of Conventional Proteins

    LIKE-A-PRO – True Cost of Conventional Proteins

    LIKE-A-PRO project aims to develop sustainable alternative proteins. Early findings highlight significant environmental challenges posed by traditional proteins like beef…

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