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  • 1.  Impact measurement and Impact accounting

    Posted 24-03-2024 19:11

    Hi All, 

    This is my first post so please forgive me if I cover something that I did not see in the conversation threads.

    I am deeply interested in, and have had the privilege to work on, Impact measurement and accounting and the potential for predicting the winners and laggard companies over the next 10 years. Is there anyone that has a similar interest? 

    In particular I would be interested in thoughts or experiences of the new exposure draft that the  IFVF and the VBA have combined their resources to produce on the measurement of impact (https://www.value-balancing.com/_Resources/Persistent/5/0/b/0/50b01884def43e1cca7ac47d2544dc3ef9daea32/IFVI_VBA_Public%20Exposure%20DRAFT_General%20Methodology%201_A4.pdf



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    Ronan Langford

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  • 2.  RE: Impact measurement and Impact accounting

    Posted 27-03-2024 09:12

    Hi Ronan,

    First of all, welcome to the community !

    As an impact investor in the energy transition, this is a topic which also interests me. In particular, whereas in previous years annual reports and investor analysis has often included somewhat arbitrary impact metrics,  I strongly believe that adopting common impact accounting standards is critical for growth in the next phase of impact investing. Standards not only enhance transparency but also improve the comparability and reliability of impact measurements across companies, funds etc.

    The CFA published a blog on this (quite early!) in 2021, the link is here. Impact-Weighted Accounting: The Missing Ingredient? | CFA Institute Enterprising Investor

    Looking forward to connecting in person.

    James



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    James Kinsbrook
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  • 3.  RE: Impact measurement and Impact accounting

    Posted 27-03-2024 09:44
    Dear All,


    Thank you for your messages on this very important subject

    As an investor I have for at least 20 years looked at financial and non-financial information in decision making - if the expected financial returns of Asset A and Asset B are the same, then I would choose the asset with the more positive non-financial profile, within an eligible universe

    I have found the attached a reasonable source for impact metrics


    I hope it may be of interest



    Best regards
    Chris
     





  • 4.  RE: Impact measurement and Impact accounting

    Posted 27-03-2024 15:08
    Hi James,

    Thanks for the link. Hopefully we connect soon 

    Ronan 

    Sent from my iPhone