Importance of Impact Due Diligence for Impact Investing
As an investor, you want to make the right investment decisions, while assessing potential social, environmental and economic impacts of your investments. Conducting your impact due diligence with us will ensure you grasp the expert and data-driven insights you need to maximise your impact returns, manage risks and performance, and engage the right stakeholders.
Maximise Impact Returns
Ensure your investments align with the investor’s mission and values, theory of change, preventing mission drift and maximise contribution to impact objectives. Together with us you can make sure you are fully informed of your investment decisions and their impact.
Transparency and Trust
Built stakeholder trust and accountability while ensuring impactful engagement with investees. Make sure you include all the right stakeholders in your invested company value chains and sphere of influence. Conducting Impact Due Diligence with us ensures you are supported during all steps along the way.
Impact Investment Lifecycle
In this phase you, as investor, want to be sure that you are making the right investment decision. An Impact Due Diligence (IDD) informs you on risks, opportunities beyond the financial and legal Due Diligence (DD).
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Private Equity
IDDs enable private equity investors to make better investment decisions – as it givers them a deep understanding of the value drivers of the investees. It enables them to work with their investees to increase their positive impact and mitigate undue impact risks.
Venture Capital
Venture capital investors use IDDs to ensure early stage entrepreneurs align with their impact goals, mitigate risks early, and attract like-minded investors by building a credible plan to scale their impact.
Asset Managers
Asset managers leverage IDDs to build client trust, meet growing demand for impact investing, and differentiate their product offerings, attracting a broader range of sustainability-focused investors.
Benefits of conducting Impact Due Diligence with us
1. Qualitative expert review
The first module of our IDD includes a critical review of a company’s sustainability claims and impact potential. It includes a review of the impact strategy, business model and governance. You will understand how the company is different from existing market practices in terms of social and environmental impacts. This assessment ensures your investment aligns with your objectives, while informing you of impact risks and opportunities.
2. Quantified impact
Our second module focuses on a quantitative evaluation of a company’s social and environmental impact per euro invested. This backward-looking assessment provides data-driven insights into the company’s effectiveness in achieving its goals. Building on the Impact-Weighted Accounts Framework (IWAF) and leveraging the Impact Investor Tool (IIT), the results roll up seamlessly into aggregated fund-level reporting.
3. Recommendations for future impact
Our future impact recommendations offer actionable insights to optimise a company’s impact potential, including suggestions for KPIs to incorporate in the term sheet. This includes the methods and data to set you up to independently, or in close collaboration with your investee, to manage the impact of your investments, powered by our Impact Investor Tool (IIT).
Invest in impactful companies
Silver
Ideal for ESG investors trying to get insight in the risks and opportunities around impact of their target portfolio companies.
Modules
1. Qualitative Expert review
2. Quantitative Impact measurement
3. Future impact and recommendations
Activities
Evaluate company’s Theory of Change
Develop Impact Pathways
Impact Risk Assessment
Build calculation model and gather data
Monitor Impact through the IIT
Forward-looking Impact model
KPI Analysis
Deliverables
Summary report with key observations
Impact data quality assessment
Impact Measurement model
Recommendations to engage with target on impact management
KPI recommendations for term sheet
Data requirements for impact monitoring
Price upon request
Gold
Ideal for impact investors that want to get a grip on their portfolio’s impact prior to making the investment decision.
Modules
1. Qualitative Expert review
2. Quantitative Impact measurement
3. Future impact and recommendations
Activities
Evaluate company’s Theory of Change
Develop Impact Pathways
Impact Risk Assessment
Build calculation model and gather data
Monitor Impact through the IIT
Forward-looking Impact model
KPI Analysis
Deliverables
Summary report with key observations
Impact data quality assessment
Impact Measurement model
Recommendations to engage with target on impact management
KPI recommendations for term sheet
Data requirements for impact monitoring
Price upon request
Platinum
Ideal of impact investors that want to go all the way towards also managing impact, setting targets and acting on them after investing.
Modules
1. Qualitative Expert review
2. Quantitative Impact measurement
3. Future impact and recommendations
Activities
Evaluate company’s Theory of Change
Develop Impact Pathways
Impact Risk Assessment
Build calculation model and gather data
Monitor Impact through the IIT
Forward-looking Impact model
KPI Analysis
Deliverables
Summary report with key observations
Impact data quality assessment
Impact Measurement model
Recommendations to engage with target on impact management
KPI recommendations for term sheet
Data requirements for impact monitoring
Price upon request
Learn more about
Impact Due Diligence
We have a lot more to tell you about how we can support you with Impact Due Diligence to maximise the impact potential of your investments. The brochure gives you a detailed overview of the process, features, packages we offer, as well as the methodology and tools behind the service.
Learn more by downloading our brochure to see how this solution can help you.
Supported by
Impact Investor Tool
One-stop-shop for investment reporting. Integrating data, advanced tools, a knowledge hub with educational resources, and access to expert analysts and advisors.
Other solutions in your investment lifecycle
ESG Screening
Integrate impact metrics in your existing ESG processes, operationalise screening and monitoring processes to start steering on the sustainability profile of your portfolios.
Impact Management
Start modelling impact in our no-code impact engine. Choose from calculation templates available from our template library from different impact methodologies: GIIN, SDG, PCAF, IWAF.
Portfolio Navigator
Manage your holdings’ transition profile in one glimpse. Choose to focus on global impact, climate change, biodiversity, human rights or SFDR related topics.
SFDR Compliance
Use Sustainable Finance Disclosure Regulation (SFDR) to steer the impact of your portfolio. Go beyond regulations and take advantage of you sustainability profile of your portfolio.