We developed a model for investors to measure and report on indirect economic and environmental impacts (i.e. employment, value added and GHG emissions) of their portfolio in a harmonised way, in collaboration with FMO, CDC, Proparco, AfDB, BIO and FinDev Canada
Promoting inclusive and sustainable economic growth, employment and decent work for all is one of the main objectives of international development finance institutions (“IFIs”). To track progress on these goals IFIs collect data from their investees on direct impacts. However, direct impacts are only a fraction of the total impacts of an investee.
Over the last few years Steward Redqueen has developed tailored models for IFIs to help them quantify the indirect impact associated with their investments. In January 2019, Steward Redqueen brought together several IFIs to explore harmonisation of approaches, which resulted in an agreement between Steward Redqueen, FMO, CDC, Proparco, BIO, the African Development Bank (AfDB) and FinDev Canada to work towards one harmonised model.
The Joint Impact Model (JIM), which is available online, is the result of this joint harmonisation effort. The JIM is currently being used and tested by 20 organisations, including bilateral finance institutions, multilateral finance institutions and commercial banks. The JIM will become publicly available for all impact investors and other interested development financiers in the second half of 2020. For more information see: www.jointimpactmodel.org.