Impact-financial integration – a Handbook for investors

Executive Summary

After years of framework development, metric definition, and data collection, many investors are increasingly able to anticipate, measure, and manage the social and environmental results of their investments. But for investors to play an even greater role in solving social problems, impact management must leave its silo and integrate with financial management.
The challenge is that financial and impact management methodologies are not designed to be interoperable.
Impact specialists at investment funds typically have their own teams with their own vernacular, frameworks, and datasets, all of which exist in varying degrees of isolation from their financial counterparts.
Siloed approaches leave impact, money, or both on the table. Yet investors who wish to integrate financial, social and environmental considerations are faced with a custom job.
To address this challenge, our organizations have participated for the past two years in the Impact Frontiers Collaboration, an initiative of the Impact
Management Project (IMP), to pioneer new ways to integrate impact management with financial management.
This handbook presents the methods of impact-financial integration that our organizations developed and implemented, along with examples
and lessons learned.