Impact measurement method that aggregates metrics for large portfolios open for input
Common Approach to Impact Measurement has released the first draft of a new methodology that helps impact investors and foundations aggregate and connect impact metrics from the organizations that are reporting to them, such that they can collect high-level insights for their portfolios.
The Common Framework is now open for public review and input and is particularly relevant for portfolio managers in impact investment and philanthropy who want to aggregate, rather than standardize, the metrics reported to them.
Instead of standardizing impact metrics, the Framework supports portfolio managers in implementing flexible standards that address the need for “context-specific impact measurement” and “comparability across different organizations and portfolios.”
They give the example of metrics such as ‘meals provided’, ‘households receiving food vouchers’, and ‘community garden participants’, which could contribute and feed into an aggregated metric titled ‘access to nutritious food.’
The methodology requires a portfolio manager to maintain thorough documentation of how and why decisions are made to aggregate certain metrics, along with the assumptions underlying that aggregation.
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