Assessing the causal attribution of impact investments www.enterprise-development.org 1
o Overview of key findings from DCED Today’s study on fund managers and assessing attributable impact session o Audience views on the role of different actors in assessing attribution
1. Articulating the results chain 2. Defining indicators of change DCED 3. Measuring attributable change Standard for 4. Capturing wider changes in Results the system or market 5. Tracking costs and impact Measurement 6. Reporting costs and results 7. Managing the system for results measurement
Study aim to better understand the current level of sophistication among impact investing fund managers in attributing results
The positive and negative changes produced by an investment, directly or indirectly, intended or Definition: unintended. Impact This involves the main impacts acts and effects resulting from the investment on the local social, economic, environmental and other development indicators.
No common No common de definition inition “ determining which portion of Definition: results of an invested company or portfolio of companies is due to attribution the activities of an investor (financial capital and non- financial value adding activities), taking into account other investors and external factors that may have influenced the achievement of the results. ”
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Key findings Fund managers are part of a value chain, which influences their IMM
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Fund managers recognise Key findings the relevance and potential benefit of assessing causal attribution
Key findings BUT the hurdles currently outweigh the benefits
Key findings AND few fund managers are assessing attribution
Audience views 1 2 3 Which impact What quality of IMM How transparent investing value chain should these actors should each actor be actors are responsible use? In what in their definition of for assessing the circumstances? impact? causal attribution of an impact investment?
Learning ADD: resources and together experience, case studies, exchange of practitioners at the global seminars, standards training etc.
Contact details ▪ Donna Loveridge, DCED Loveridge@enterprise-development.org ▪ Birgit Seibel, GIZ birgit.seibel@giz.de To find out more about the DCED and GIZ: www.enterprise.development.org https://www.giz.de/en/html/index.html www.enterprise-development.org 15
More information Attributing results in impact investing: https://www.enterprise-development.org/wp-content/uploads/DCED- Report-on-Attribution-in-Results-Measurement-for-Impact-Investors.pdf Measurement valued by investees: https://www.enterprise-development.org/wp-content/uploads/DCED-RM- investee-measurement-report.pdf Results measurement in impact investing – a preliminary review: https://www.enterprise-development.org/wp-content/uploads/DCED-RM- in-Impact-Investing-Review.pdf www.enterprise-development.org 16
Clic ick her ere e on on th the e webs ebsit ite e for or grea eat t resou esources ces on on th the e DC DCED ED S Sta tand ndar ard More information www.enterprise-development.org 17
▪ The DCED: A global forum of 24 donor and development agencies ▪ Working to increase the effectiveness of private sector development in developing countries by: Exchanging experience on current practice, new trends; Synthesising knowledge on what works; and Developing common guidance on effective practice www.enterprise-development.org 18
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