Impact reporting is the process of documenting and communicating the impact that an organisation, investment, or project is having on the world. This can include both the positive and negative impacts, and may encompass a wide range of areas such as environmental, social, and economic impacts.
Impact reporting is an important tool for organisations and investors looking to understand and improve the impact of their work. It can help organisations identify areas where they are having a positive impact, as well as areas where they may need to make changes in order to have a greater impact. It can also provide valuable information to stakeholders, such as donors, investors, and customers, who are interested in understanding the impact of an organisation or investment.
There are a variety of approaches to impact reporting, including both quantitative and qualitative methods. Quantitative methods may involve collecting and analysing data on specific metrics, such as the number of people served or the amount of greenhouse gases reduced. Qualitative methods may involve collecting and analysing stories and anecdotes from people who have been impacted by the organisation or investment.
There are also a number of frameworks and guidelines that organisations can use to structure their impact reporting efforts. One popular framework is the Global Impact Investing Rating System (GIIRS), which provides a comprehensive assessment of the impact, governance, and financial performance of impact investments. Other frameworks, such as the Social Return on Investment (SROI) and the Environmental, Social, and Governance (ESG) score, focus specifically on non-financial metrics and can provide valuable insights into the social and environmental impact of an investment.
Overall, impact reporting is an important aspect of sustainable investing and social impact work, as it helps organisation’s and investors understand and improve the impact of their work, and helps stakeholders make informed decisions about their support and involvement.