Impact investing has grown exponentially, promising both financial returns and positive social or environmental change. However, assessing and comparing the “impact” of different investments has remained a challenge. The Impact Performance Reporting Norms (the “Norms”) aim to change this, bringing clarity and consistency to the way we measure and report impact.

What are the Impact Performance Reporting Norms?

Developed by Impact Frontiers with support from The Rockefeller Foundation, the Norms are a set of voluntary guidelines designed to improve the quality and comparability of impact reporting. Over 350 experts and stakeholders from across the impact investing sector (including the team at The Good Economy) contributed to their creation, ensuring they reflect the practical realities and needs of investors, asset managers, and others.

The Norms address three key questions:

1. What information should be included in an impact report? The Norms provide a comprehensive framework, covering everything from the impact thesis of an investment to its specific outcomes and the data used to measure them.
2. Who should receive the report? The Norms emphasise the importance of tailoring reports to the needs of specific users, whether they are asset owners, investors, or other stakeholders.
3. Why is reporting important? The Norms make clear that impact reporting is not simply an exercise in compliance, but a critical tool for learning, improvement, and decision-making.

Implementing the Impact Performance Reporting Norms: A Roadmap for Investors

The Norms are not a prescriptive checklist, but a flexible framework that can be adapted to the specific context of different investments and organisations. However, here are some key tips for investors looking to implement this reporting approach:

1. Start small and iterate: Your first impact report doesn’t have to be perfect. Begin with the data you have available, and gradually build your capacity over time.
2. Tailor your report: Use the Norms’ Guiding Principles to customise your report to the specific needs of your users. What information are they looking for, and how can you present it in a way that is both clear and informative?
3. Go beyond outputs: Focus on outcomes and impacts. How are your investments affecting the lives of people and the health of the planet? Engage with stakeholders to gather qualitative data and understand the real-world impact of your work.
4. Tell the whole story: Don’t just highlight the positive. Be transparent about challenges and setbacks and show how you are learning and improving over time.
5. Join the conversation: The Norms are a living document. Share your experiences and feedback with Impact Frontiers and the wider community to help shape the future development of the Norms.

The Good Economy’s Role

As the field of impact measurement has become more established, its focus has shifted. Measurement is no longer just a question of selecting metrics, collecting data and reporting on impact performance. The challenge is how to embed impact considerations into decision-making throughout the investment cycle. Having worked helped over 150+ clients with Impact Measurement and Management frameworks over the last ten years, our expert team are acutely aware of the challenges and opportunities of the impact investing sector, insights we were happy to share in the consultation process.

What This Means for You

If you’re an impact investor, the Norms can help you to:

• Improve the quality and transparency of your impact reporting
• Make better investment decisions
• Communicate your impact more effectively to stakeholders
• Contribute to the growing body of knowledge and best practice in impact measurement and management

To understand what changes you would need to make to adopt these norms, schedule a review with our team. We’re here to help you navigate this exciting new landscape and maximise the impact of your investments.