In the evolving landscape of impact investing, the ability to measure and communicate the social and environmental outcomes of investments is paramount. Impact reports have emerged as a critical tool for investors, providing valuable insights and fostering transparency.

Impact reporting offers investors robust, data-driven insights that go beyond traditional financial metrics. No longer relying on gut feelings or incomplete data, each investment decision is now well-informed, backed by comprehensive and accurate impact metrics.

In the world of impact investing, credibility is key. Investors need to demonstrate that their investments are genuinely making a difference. Generating impact reports helps build trust with stakeholders, including limited partners, beneficiaries, and the broader community. When investors can show tangible evidence of their impact, it strengthens their reputation and attracts more capital.

When Should I Use an Impact Report?

Diligencing New Companies

When evaluating potential investments, impact reports are crucial for identifying which companies will have the greatest impact. Here’s how they help:

• Comparing Impact Potential: Impact reports provide a detailed analysis of the projected social and environmental outcomes of each company, allowing investors to compare the potential impact and identify those with the greatest promise.
• Assessing Social Return on Investment (SROI): By quantifying the monetary value of each company’s outcomes, impact reports help investors understand the value generated per dollar invested. This metric is essential for identifying which companies offer the highest SROI.

Generating Aggregate Portfolio Reports 

Impact reports are also vital for building trust and transparency with stakeholders. Here’s why:

• Aggregate Portfolio Information: Impact reports provide LPs with a comprehensive view of the impact generated across the entire portfolio. This includes aggregate data on environmental and social outcomes and the total impact value created.
• Global Standard Breakdown: By aligning impact data with global standards like the United Nations Sustainable Development Goals (SDGs) and the Global Impact Investing Network (GIIN)’s IRIS+ metrics, impact reports offer a clear and standardized view of the impact generated. This makes it easier for LPs to understand and compare the performance of different investments and benchmark their portfolio performance against peers.
• Tracking and Comparison: Impact reports allow investors to track the performance of each company in the portfolio and compare them to one another. This helps in identifying which companies are performing well and which ones may need additional support.
• Responding to Regulatory Requirements: Requirements around impact disclosure are becoming more frequent, and investors who have impact reports already on hand will have a competitive advantage.

How do I view my Impact Report?

Impact reporting with Impactable is easy and quick! We automate the research and data collection for your companies and generate reports for you that are available at the click of a button. To view your automated impact report, simply navigate to your home page.

Companies tab

• Status updates: View which companies have onboarded and the completion state of their models.
• Impact overview per company: Review high level measures of impact performance, including total impact projection, impact multiple of revenue (impact generated per dollar of revenue), and impact multiple of capital (social return on investment).

Analytics tab‍

• Impact overview for aggregate portfolio: Top-level company analytics are aggregated across all the companies you select to provide your stakeholders information on overall performance.

• Global framework alignment: All analytics through Impactable are aligned with global frameworks such as the SDGs. Your impact report includes a breakdown of which areas of impact are driving the most value.

• Aggregated outcomes: View the tangible outcomes driving your impact valuation, aggregated across the various companies that generate that outcome.

• Year on year impact: Dive deeper into these outcomes by comparing growth over time.

• ESG Performance: Impact reports also include ESG metrics such as founder demographics.

Want to get started?

Impact reports are a powerful tool for investors, providing valuable insights and fostering transparency. Whether you are diligencing new companies or building trust with LPs, these reports offer a clear and comprehensive view of the social and environmental outcomes of your investments. By leveraging impact reports, investors can make data-driven decisions, enhance accountability, and ultimately drive greater impact.

Ready to see how Impactable can revolutionize your impact reporting? Schedule a demo call with us and take a step towards more impactful investing.