The financial sector is uniquely positioned to accelerate the transition to an Impact Economy, it can mobilise capital, direct funds into areas that benefit society, and appropriately price social and environmental risks.

sustainable finance transition - Impact Institute

IMPACT MEASUREMENT AND REPORTING

Measuring impact helps Financial Institutions better understand the actual and potential financial, social, and environmental impact they have on their stakeholders and the drivers of such impact. For example, climate or biodiversity footprints, portfolio impact assessments, Human Rights violations in the value chain, financial inclusion, as well as the value created with financial products such as mortgages and sustainability-linked bonds. It allows them to credibly report on the value they create and satisfy sustainability reporting requirements (ESRS, CSRD, SFDR, TNFD, TCFD, etc.).

IMPACT MANAGEMENT AND STRATEGY

The financial sector is crucial to help accelerate societal transitions such as the energy, food, or materials transition. Understanding the impact and the underlying drivers helps to broaden the interpretation of ‘value’ beyond simple financial value. It enriches investment and lending decisions and enables institutions to anticipate emerging risks, thereby helping them thrive – and even survive – in a world tested by environmental and social shifts. Impact valuation allows for the creation and execution of a comprehensive strategy where trade-offs can be compared and managed in terms of risk, return, and impact. For example, using impact information to develop product portfolios that stimulate business with lower external costs and incorporating True Value in investment policies and processes.

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

ASSET OWNERS AND MANAGERS

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.

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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.

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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.