Impact strategies will have specific performance metrics related to the socialor environmental impact that they are addressing. These metrics will be monitored alongside and in a similar fashion to financial performance metrics and help investors manage toward success. They are estimated, measured and monitored over time to give an indication of the performance of the investment in a given area of impact. Qualitative social impacts that cannot be easily measured can be measured through quantitative proxies. Investments will have to meet these social or environmental criteria as well as satisfying financial investment guidelines. For example, a Real Estate impact metric might be the percentage of units delivered that are available at an affordable rent.
Global Definitions Database
Impact investing metrics
Source: Global | Date: 11 April 2023 | ID: D0819 | Version: 3