Our global economy remains stalled at a critical juncture. Well-known social and environmental threats have been ignored in favor of a short-sighted economic system. The negative side effects are piling up – runaway climate change, natural resource depletion, increasing inequality, diminishing social safety nets and a widening gap between rich and poor.
We have published the Principles of Impact Reporting for Financial Institutions
We need to measure what matters
The remedy is a more inclusive market economy, one that serves people and the planet, not just shareholders. To help get there the Banking for Impact Working group aims to create a common impact measurement and valuation approach tailored to banks. We are working on a robust, scalable and cost-effective method for the quantification, valuation, attribution and aggregation of impacts for the sector. With support from the financial industry, the goal is to scale up and standardize these efforts over time.
A four-pronged approach tailored to the financial sector
Impact must be included as a driver of economic profit and factors like job creation, climate change, quality of life, and human rights must be considered. To capture the full scope of impact along the value chain, Banking for Impact proposes a tailored fourpronged approach to create meaningful impact
measurement and valuation (IMV).
The consultation draft of the guidance document for impact measurement and its supplement with a classification of activities, related impacts and relevant data sources are now available. We are soliciting input from practitioners on the methodology and its applicability for financial institutions. If you have any feedback or ideas on how this guide can be made stronger, please reach to Sven Renon.