This presentation was used by Kelly McCarthy, Tessa Hebb, Anshula Chowdhury, Karim Harji and Joyce Sou in the social impact metrics session at the 2011 Social Finance Forum. The 2011 Social Finance Forum, which took place at the MaRS Discovery District in Toronto on December 13 and 14, brought together investors and ventures in order to create meaningful interactions and learning opportunities to mobilize capital and inspire new ideas.

1. IRIS
Impact
Repor1ng
&
Investment
Standards
2011
SOCIAL
FINANCE
FORUM
WEDNESDAY,
DECEMBER
14
2011
©
Global
Impact
Inves1ng
Network,
2011

2. Agenda
Introduc,on:
Impact
Inves,ng
and
IRIS
• IRIS,
its
purpose,
and
stakeholders
10
min
Using
IRIS
• Theory
of
change,
processes
for
selec1ng
metrics,
sample
reports
10
min
Workshop:
Selec,ng
metrics
for
your
organiza,on
• Use
Case
10
min
• Breakout
Groups
25
min
Impact
Repor,ng
•
Processes,
Methodologies,
Frameworks
&
IRIS
5
min
2
©
Global
Impact
Inves1ng
Network,
2010

3. INTRODUCTION
Impact
Inves1ng
and
IRIS:
IRIS,
its
purpose
and
stakeholders
3
©
Global
Impact
Inves1ng
Network,
2010

4. The
Global
Impact
Investing
Network
(GIIN)
The
GIIN
is
a
not-­‐for-­‐profit
organiza5on
dedicated
to
increasing
the
scale
and
effec5veness
of
impact
inves5ng.
The
GIIN
builds
cri5cal
infrastructure
and
develops
ac5vi5es,
educa5on,
and
research
that
can
increase
the
scale
and
effec5veness
of
impact
inves5ng
around
the
world.
©
Global
Impact
Inves1ng
Network,
2011

5. The
Impact
Reporting
and
Investment
Standards
(IRIS)
is
a
common
language
for
de2ining,
tracking,
and
reporting
the
social
and
environmental
performance
of
organizations.
5
©
Global
Impact
Inves1ng
Network,
2010

6. IRIS
addresses
market
fragmenta1on
1
• Lack
of
consistency
and
coordina,on
in
use
of
metrics
and
defini,ons
2
• Unclear
and
insufficient
incen,ves
for
impact
repor,ng
3
• Insufficient
aggregate
data
to
inform
investment
decisions
and
monitor
performance
Inability
to
understand
the
full
value
of
impact
investments
6

7. IRIS
is…
My
Metrics
Your
Metrics
Full
Time
Employees
=
Full
Time
Employees
GHG
Emissions
Reduced
=
GHG
Emissions
Reduced
7

8. IRIS
is…
Financial
+
Environmental
&
Social
Performance
Performance
~Analogous~
8

9. IRIS
is
a
meta-­‐standard
Examples
of
Frameworks
Leveraged
§ Interna1onal
Financial
Repor1ng
Standards
(IFRS)
§ U.S.
Generally
Accepted
Accoun1ng
Principles
(GAAP)
Financial
Performance
§ Microfinance
Informa1on
Exchange
(MIX)
§ Community
Development
Finance
Data
Project
(CDP)
§ Interna1onal
Labour
Organiza1on
(ILO)
§ Organisa1on
for
Economic
and
Coopera1on
and
Opera,onal
Impact
Development
(OECD)
§ Global
Repor1ng
Ini1a1ve
(GRI)
§ B
Lab
§ Cer1fica1on
schemes
(FLO,
FSC,
SAI,
etc)
Product
Impact
§ Sector-­‐specific
protocols
(SPTF,
NCIF,
etc)
§ Proprietary
systems
(IFC,
WRI,
etc)
9
©
Global
Impact
Inves1ng
Network,
2010

10. IRIS
is
not…
10

11. IRIS
is
for…
•
Increased
transparency
&
credibility
Investors
in
Funds
•
Applicability
across
geography,
sector,
and
at
the
fund
level
• Standardized
third-­‐party
performance
metrics
Direct
Investors
• Peer-­‐based
benchmarks
&
comparability
• Streamlined
repor1ng
• Simplified,
targeted
impact
repor1ng
Intermediaries
guidance
for
clients
• Increased
ability
to
assess
aggregated
impacts
• Standardized
impact
performance
metrics
Enterprises
• Streamlined
repor1ng
• Performance
benchmarks
11
©
Global
Impact
Inves1ng
Network
2011

12. Who’s
using
IRIS
Es,mated
Users:
• 100+
Funds
The
IRIS
World
as
• 1,900+
MFIs
(*MIX
alignment)
We
Know
It
• 3,000+
Companies
Alignment,
Mapping,
and
Harmoniza,on
Examples:
FIELD/MicroTest
12

13. USING
IRIS
Processes
for
selec1ng
metrics,
sample
reports
13
©
Global
Impact
Inves1ng
Network,
2010

14. Genera1ng
Social/Environmental
Impact
Diverse
Impact
Objec,ves
Across
Mul,ple
Sectors
Across
Mul,ple
Models
(Product/Service
&
Opera,ons)
n Agriculture
n Health
n High
quality
job
crea1on
n Financial
n Energy
services
n U1lizing
BOP+
suppliers
n Water
n Housing
n Increasing
energy
efficiency
n Other
n Educa1on
n Facilita1ng
asset
accumula1on
n Improving
health
outcomes
©
Global
Impact
Inves1ng
Network
2011

15. An
impact
measurement
pathway
is
a
basic
set
of
steps
for
planning,
implementing,
communicating,
monitoring,
and
improving
social
and
environmental
performance.

16. Impact
Measurement
Pathway
Phase
1:
Planning
Phase
2:
Implemen1ng
(1)
DEFINE
(2)
ALIGN
(3)
MAP
(4)
CHOOSE
(5)
CODIFY
(6)
COLLECT
&
Theory
of
Stakeholder
Outputs,
Metrics
&
M&E
MANAGE
Change
Expecta,ons
Outcomes
&
Indicators
Processes,
Performance
(7)
VALIDATE
Impacts
Frameworks
Data
Performance
Data
(8)
ANALYZE
Performance
Data
(9)
REPORT
(11)IMPROVE
Performance
Performance
Data
to
Stakeholders
(10)
SOLICIT
Stakeholder
Feedback

17. 1
Impact
Measurement
Pathway
Phase
1:
Planning
Phase
2:
Implemen1ng
(1)
DEFINE
(2)
ALIGN
(3)
MAP
(4)
CHOOSE
(5)
CODIFY
(6)
COLLECT
&
Theory
of
Stakeholder
Outputs,
Metrics
&
M&E
MANAGE
Change
Expecta,ons
Outcomes
&
Indicators
Processes,
Performance
(7)
VALIDATE
Impacts
Frameworks
Data
Performance
Data
(8)
ANALYZE
Performance
Data
A
Theory
of
Change
is
a
strategy
or
blueprint
for
achieving
long-­‐term
goals.
It
iden5fies
the
precondi5ons,
pathways
and
interven5ons
(9)
REPORT
(11)IMPROVE
Performance
necessary
for
realizing
success.
Performance
Data
to
Stakeholders
(10)
SOLICIT
Stakeholder
Feedback

18. 1
Define
Theory
of
Change
Example
Global
poverty
and
environmental
issues
are
inextricably
linked
–
it
is
the
most
impoverished
people
that
will
suffer
the
worst
consequences
of
Principles
climate
change
and
water
and
resource
scarcity.
Unless
we
pursue
harmonious
solu,ons
for
both,
we
will
succeed
at
neither.
To
combat
poverty
for
both
people
and
planet
while
working
toward
the
long-­‐term
conserva1on
and
sustainable
use
of
natural
resources
by
employing
Hypothesis
market-­‐driven
solu,ons
that
focus
on
suppor,ng
environmentally
and
socially
responsible
small
and
growing
businesses
(SGBs)
in
emerging
markets
–
the
engines
of
innova1on.
(1) Develop
Local
“Ecosystems”
of
Support
Strategy
(2) Engage
Impact
Investors
(3) Build
a
Global
Network

19. 2
Impact
Measurement
Pathway
Phase
1:
Planning
Phase
2:
Implemen1ng
(1)
DEFINE
(2)
ALIGN
(3)
MAP
(4)
CHOOSE
(5)
CODIFY
(6)
COLLECT
&
Theory
of
Stakeholder
Outputs,
Metrics
&
M&E
MANAGE
Change
Expecta,ons
Outcomes
&
Indicators
Processes,
Performance
(7)
VALIDATE
Impacts
Frameworks
Data
Performance
Data
(8)
ANALYZE
Stakeholders
are
persons,
groups,
Performance
Data
organiza5ons,
systems
,
or
the
natural
environment
who
affect
or
(9)
REPORT
can
be
affected
by
an
(11)IMPROVE
Performance
Performance
Data
to
organiza5on's
ac5ons.
(10)
SOLICIT
Stakeholders
Stakeholder
Feedback

20. 2
Align
Stakeholder
Expecta1ons
Example
Issues
(1) Climate
change
(2) Water
quality
&
quan1ty
Environment
(3) Biodiversity
loss
(4) Natural
resource
pressure
(5) Pollu1on
&
waste
Issues
(1) Access
to
basic
services
(water,
food,
energy,
Impoverished
sanita1on,
housing,
health,
educa1on)
(2) Access
to
employment,
fair
working
condi1ons,
and
fair
wages
Issues
(1) Access
to
entrepreneurial
support
SGBs
(2) Access
to
finance
(3) Access
to
markets
(4) Technology
transfer

21. 3
Impact
Measurement
Pathway
Phase
1:
Planning
Phase
2:
Implemen1ng
(1)
DEFINE
(2)
ALIGN
(3)
MAP
(4)
CHOOSE
(5)
CODIFY
(6)
COLLECT
&
Theory
of
Stakeholder
Outputs,
Metrics
&
M&E
MANAGE
Change
Expecta,ons
Outcomes
&
Indicators
Processes,
Performance
(7)
VALIDATE
Impacts
Frameworks
Data
Performance
Data
Outputs:
prac5ces
and
products
(and
(8)
ANALYZE
byproducts)
that
a
company
itself
can
Performance
measure
directly
-­‐
generally
intended
to
serve
Data
as
proxies
for
impact.
Outcomes:
changes
or
shiOs
in
behaviors
or
(9)
REPORT
social
paradigms
that
are
levers
for
impact.
(11)IMPROVE
Performance
Impacts:
part
of
the
total
result
that
occurred
Performance
Data
to
Stakeholders
due
to
a
company’s
ac5vity,
above
and
(10)
SOLICIT
beyond
what
would
have
happened
anyway.
Stakeholder
Feedback

22. 3
Map
Outputs
à
Outcomes
à
Impacts
Example
Issue:
Health
>
Malaria
Impacts
Incidents
of
malaria
in
target
region
have
(change
we
seek)
decreased,
thus
the
health
of
the
target
popula1on
is
improved
Issue:
Health
>
Malaria
Outcomes
Bed
nets
are
being
used
by
target
popula1on
for
(behavioral
or
social
shiO)
intended
reason
Issue:
Health
>
Malaria
Outputs
Bed
nets
are
distributed
at
scale
to
impoverished
(product,
service
or
prac5ce)
popula1on
in
target
region

23. 4
Impact
Measurement
Pathway
Phase
1:
Planning
Phase
2:
Implemen1ng
(1)
DEFINE
(2)
ALIGN
(3)
MAP
(4)
CHOOSE
(5)
CODIFY
(6)
COLLECT
&
Theory
of
Stakeholder
Outputs,
Metrics
&
M&E
MANAGE
Change
Expecta,ons
Outcomes
&
Indicators
Processes,
Performance
(7)
VALIDATE
Impacts
Frameworks
Data
Performance
Data
Metrics
and
indicators
mark
the
difference
between
something
that’s
easy
to
count
but
(8)
ANALYZE
unrelated
to
actual
impact,
and
something
Performance
that’s
both
countable
and
is
in
fact
a
valid
Data
proxy
for
impact.
It
is
possible
to
gauge
this
to
a
reasonable
degree
of
credibility
via
the
(9)
REPORT
(11)IMPROVE
Performance
proxy
of
outputs
that
have
been
determined
Performance
Data
to
by
researchers
to
be
indicators
of
impact,
and
Stakeholders
(10)
SOLICIT
which
can
be
easily
measured
during
the
Stakeholder
course
of
regular
opera5ons.
Feedback

24. 4
IRIS
Structure:
Choose
Metrics
&
Indicators
Example
• Qualita,ve
and
quan,ta,ve
indicators
in
five
taxonomy
Cross-­‐sector
indicators
that
are
useful
sec1ons.
to
organiza1ons
in
mul1ple
sectors,
• Report
indicators
for
an
and
“sector-­‐specific”
indicators
for
organiza1on
or
a
par1cular
organiza1ons
whose
ac1vi1es
impact
a
product.
given
sector.

25. 5
Impact
Measurement
Pathway
Phase
1:
Planning
Phase
2:
Implemen1ng
(1)
DEFINE
(2)
ALIGN
(3)
MAP
(4)
CHOOSE
(6)
COLLECT
&
(5)
CODIFY
Theory
of
Stakeholder
Outputs,
Metrics
&
MANAGE
Change
Expecta,ons
Indicators
Processes,
Outcomes
&
Performance
(7)
VALIDATE
Frameworks
Impacts
Data
Performance
Data
(8)
ANALYZE
Frameworks,
Approaches,
and
Performance
Methodologies
are
both
internal
prac5ces
Data
and
named,
documented
processes
that
are
used
to
assess
either
the
actual
social
and/or
(9)
REPORT
(11)IMPROVE
Performance
environmental
impact
of
an
organiza5on’s
Performance
Data
to
ac5vi5es
or
the
indicators
of
that
impact.
Stakeholders
(10)
SOLICIT
Stakeholder
Feedback

26. 5
Codify
M&E
Processes,
Frameworks
Example
Social
Return
on
Investment
Valua,ons
(SROI)
Assessments
Internal
Systems
iPAL

27. IRIS
structure
IRIS
Framework
• Qualita,ve
and
quan,ta,ve
Cross-­‐sector
indicators
that
are
useful
to
indicators
in
five
taxonomy
sec1ons.
organiza1ons
in
mul1ple
sectors,
and
• Report
indicators
for
an
organiza1on
“sector-­‐specific”
indicators
for
or
a
par1cular
product.
organiza1ons
whose
ac1vi1es
impact
a
given
sector.
27

28. Overview
of
IRIS
Framework

29. IRIS
Standards:
Organiza1onal
Informa1on

30. IRIS
Standards:
Impact
Objec1ves

31. IRIS
Standards:
Product
Descrip1on

32. IRIS
Standards:
Opera1onal
Impact

33. IRIS
Standards:
Opera1onal
Impact

34. IRIS
Standards:
Product
Impact

35. IRIS
standards:
Measuring
what
malers

36. Sample
Impact
Report:
Smallholder
Suppliers
h[p://iris.thegiin.org/report/free-­‐bee-­‐honey

37. Contacts:
Anshula
Chowdhury,
Social
Asset
Measurements
anshula@socialassets.org
Karim
Harji,
Venture
Deli
karim@venturedeli.com
Tessa
Hebb,
Carleton
Centre
for
Community
Innovation
(C3i)
thebb@attglobal.net
Kelly
McCarthy,
IRIS,
Global
Impact
Investing
Network
(GIIN)
kmccarthy@thegiin.org
Joyce
Sou,
MaRS
Centre
for
Impact
Investing
jsou@marsdd.com
©
Global
Impact
Inves1ng
Network,
2010

38. Youth Music Org.
Case Study Walk through

39. Case
Study:
Steps
- Basic Case Facts: “Youth-Music Org”
- Basic Evaluation Facts: “Youth-Music Org”
- Overview of Impact Mapping
- “Youth-Music Org” Impact Mapping Example
Pg 39

40. The
Facts
- YMO is a non-profit funded by the government
- Music programs for youth aged 16-24
- Free hip-hop music class runs twice a week by paid staff and
volunteers
- YMO expects the participants will gain technical art skills which
increase confidence, school engagement and increased peer
support networks which provide access to employment
Pg 40

41. Impact
Map:
Basic
Informa,on
Organiza,on
Youth-­‐Music
Organiza1on
Objec,ve
Provide
marginalized
youth
with
technical
art
skills
to
lim
them
out
of
poverty
Ac,vity
30
spots
for
marginalized
youth
in
hip-­‐hop
teaching
program
Repor,ng
period
1
year
–
50
weeks
Pg 41

42. Impact
Map:
Overview
Inputs Outputs
Definition and
Related Reporting Related Reporting
Indicators IRIS ID Format Category Indicators IRIS ID Format Category
Pg 42

43. Inputs
Stakeholders
What
is
required
for
Related
this
ac,vity?
Indicators
Pg 43

44. Inputs
Stakeholders
What
is
required
for
Related
this
ac,vity?
Indicators
Youth
Pg 44

45. Inputs
Stakeholders
What
is
required
for
Related
this
ac,vity?
Indicators
Youth
Youth
must
alend
program
Pg 45

46. Inputs
Stakeholders
What
is
required
for
Related
this
ac,vity?
Indicators
Youth
Youth
must
alend
#
of
youth
who
program
alend
the
programs
Pg 46

47. Inputs
IRIS
ID
Defini,on
and
Category
Repor,ng
Format
Unique
Client
Visits
Average
number
of
Product
Impact
–
client
visits
to
Client
Informa1on
PI8783
facili1es
during
the
repor1ng
period.
Number
of
vists
Pg 47

48. Outputs
What
do
you
expect
to
change
What
measures
could
be
used?
through
this
program?
Related
Indicators
Pg 48

49. Outputs
What
do
you
expect
to
change
What
measures
could
be
used?
through
this
program?
Related
Indicators
Youth
will
have
the
opportunity
to
launch
a
career
in
music,
restart
their
engagement
with
schools,
and
create
a
peer
support
network
that
provides
access
to
employment.
Pg 49

50. Outputs
What
do
you
expect
to
change
What
measures
could
be
used?
through
this
program?
Related
Indicators
Youth
will
have
the
Increased
educa1on
levels
opportunity
to
launch
a
career
in
music,
restart
their
engagement
with
schools,
and
create
a
peer
support
network
that
provides
access
to
employment.
Pg 50

51. Outputs
IRIS
ID
Defini,on
and
Category
Repor,ng
Format
Student
Transi1on
Percentage
of
Product
Impact
–
Rate
students
advancing
Quality
&
from
one
level
of
Performance
PI4924
schooling
to
the
next.
For
example,
primary
to
secondary
school
or
secondary
school
to
higher
educa1on.
Decimal
Pg 51

52. Is
it
significant?
Pg 52

53. Individual
case
study
Pg 53