August 25, 2023

Simplifying Impact Measurement for Investors

Impact investing has traditionally been an avenue for private market investors to improve outcomes on environmental and social issues alongside generating financial returns. According to a survey conducted by the Global Impact Investing Network (GIIN), the size of the impact investing market is an estimated USD 1.164 trillion as of 2022. 

With demand for impact investments on the rise, tracking and measuring relevant metrics are incredibly important to drive outcomes for people and the planet. The industry is seeing progress on metrics and framework alignment, with 78% of investors using the GIIN’s IRIS+ metrics to measure impact. However, the ability to analyze this data in context remains a challenge for investors. Per a 2023 GIIN report, only 15% of impact investors compare their impact results to peers. Additionally, 76% considered the inability to compare impact a significant or moderate challenge in the industry.

To address this challenge by streamlining data collection and measurement for impact investors, Novata is partnering with the GIIN to leverage IRIS+ metrics in-platform.

Impact Investing and Novata

Novata’s collaboration with the GIIN integrates its robust IRIS+ impact metrics focused on financial inclusion in the Novata platform, along with two core metric sets to measure the IRIS+ Strategic Goals around Responsible Financial Services and Supporting Decent Jobs and Fostering Economic Development. These performance metrics allow for impact funds committed to financial inclusion to measure their performance, understand their impact, and communicate clearly with key stakeholders.

The availability of high-quality, comparable data allows for increased transparency and accountability across the industry. With the integration of the metrics in the Novata platform, impact investors are more easily able to identify a clear starting point for determining the metrics that matter, collect data, and generate actionable insights from data analysis. This, in turn, empowers them to make more informed decisions, increase impact on major societal and environmental challenges, such as climate change, and incorporate these performance metrics into their reporting. 

Manage Your Impact Metrics with Novata 

The ability to track and analyze impact performance is essential to generate positive, measurable social and environmental outcomes. Novata supports impact investors with the tools and expertise that make it easy to collect, analyze, and report on the impact metrics that matter. Learn more about streamlining data management with Novata. 

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Teresa Yu