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com

Impact Measurement
and
Reporting Standards

Prof Durreen Shahnaz

January 2011

The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the
governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use.  The countries listed in this
paper do not imply any view on ADB's part as to sovereignty or independent status or necessarily conform to ADB's terminology.
 Clean energy
SMEs
Food security

Education
Fair trade

Media
Poverty BOP goods &
services
Alleviation and
Environment Sustainable
Housing
Development

Telecom Insurance

Water / Sanitation Transportation

infrastructure

Health Microfinance
Social Impact
Enterprises Investors

IMPACT
INVESTMENT
EXCHANGE
ASIA
Enterprises
not ready to
list?
 Capacity-Building for Social Enterprises

IIX’s not-for-profit affiliate

Social Enterprise capacity-building

Social impact assessments
Market readiness assessments
Financial and social impact reporting
Helps SEs meet IIX eligibility criteria
Asia-focused research
 Social Enterprise mapping
 Social impact measurement
 Regional regulatory research
 Impact Investor mapping
Impact Investment Success Linked to..

Buy-in from
Stakeholders

Impact Investor
Investment Investment Acceptable
Readiness
Of SE
Exchange Social
Measurement
Asia
 Bangladesh
• Rich & diverse NGO sector since 70s
• 26,000 officially registered NGOs
• Large NGOs enjoy wide donor
support: BRAC, Grameen, ASA
• NGOs now create market oriented
entities: Aarong, BRAC dairy,
Probotona, WasteConcern
• Emerging private entities with social
orientation: Grameen Danone,
Grameen Shakti, Hatey Bunano, Cell
Bazaar, Kazi Tea
• Regulatory framework lagging,
growth capital scarce for SMEs
Impact Measurement
• One of the greatly discussed issues
recently
• Still no widely accepted standardized
methodology
• Even less so for Social Enterprises (SEs)
in Asia
• Our contribution
– We tested methods for SEs in Asia
 IRIS
• Impact Reporting and Investment Standards
– A common language for social and environmental impact

1. Descriptor indicators
2. Key financial indicators
3. Operational indicators
4. Sector-specific indicators
 Agriculture and Artisanal
 Energy, Water, and Environment
 Education
 Community Development Finance
 Healthcare
 Microfinance
 GIIRS
• Global Impact Investing Rating System
– Transparent, standardized, low cost rating system

• Developed in a collaborative
fashion
• Buy-in from influential industry
players
• Basis for company and fund
certification
• Being tested by 25 partner
funds
 SROI
• Social Return On Investment
– Monetizing the impact of an organization

• Valuation instead of
measurement / rating
• Wide support and many
applications to date
• Possible to integrate with
IRIS The SROI Network
Accounting For Value

• Translates impact into

financial language
 Kazi Tea & Tea Estate
Organic tea farm
Panchagarh, Bangladesh

GIIRS: 63.7% SROI: 0.14 – 7.04

Governance and Leadership 87% Training activities 85%
Community 74.7% Price premium for certification 4%
Employees 65.2% Local sourcing 4%
Environment 70% Wage income for workers 6%
Consumers 40% Charitable work locally 1%
Environment 0.7%
 Results
• GIIRS:
– Higher scores for environmentally focused SEs
– Lower scores for MFIs and education initiatives
• SROI:
– Higher scores for education / training initiatives
– NOTE: One-year timeframe on valuation; environmental
returns thus low
 From Ideas to Action
• Shujog: Market readiness and impact
assessment, capacity building workshops,
research
• Impact measurement:
Err on the side of simplicity
• IIX: Platforms for channeling private
capital for sustainable development
• Buy-in from investors and intermediaries
• Get involved!
 www.asiaiix.com
IMPACT
INVESTMENT dshahnaz@asiaiix.com
EXCHANGE
ASIA

Thank you!