Impact Framework

Impact occurs on two axes

Themes Icon

Themes

  • High level, investable areas of impact that serve as the point of entry into the iPAR taxonomy
  • Indicate relative weights of invested capital (portfolio level) or a manager’s impact strategy (investee level)
  • Visualization imparts insight into mission alignment – or lack thereof
  • Return-agnostic; can be applied equally to investments as well as grants
Geography Icon

Geography

  • The other lens through which many investors choose to deploy capital
  • Quantifies where in the world capital is focused
  • Highlights precisely where capital is deployed in tangible assets such as companies, projects, and properties
  • Illustrates where investment firms are located and have “boots on the ground”

Themes

Themes

The four-piece lens through which iPAR segments all impact investments and grants. This inclusive 4x4 grid acknowledges the importance of publicly traded securities such as stocks and bonds within an impact portfolio, and distinguishes the role they’re able to play.

Climate


Mitigating the steady buildup of greenhouse gases within the Earth's atmosphere

People


Democratizing opportunity for all members of society

Resources


Easing the ever-increasing demands placed on natural ecosystems

Public


Upholding values via publicly-traded security selection and related activity

Building Blocks

These are the 16 areas that together facilitate classification of vastly disparate approaches to impact. By applying up to four of these Building Blocks to any impact investment, one can better understand the intention(s) of the related fund manager or nonprofit.

Efficiency

Emissions

Renewables

Infrastructure

Equality

Finance

Employment

Access

Conservation

Production

Reduction

Rehabilitation

Alignment

Engagement

Mandate

Scoring

Sub-Building Blocks

These are the increasingly descriptive sub-components that help to further delineate the overall impact strategy. Unlike the rigid 4x4 taxonomy, Sub-Blocks are meant to be flexible in number and scope – provided there is a corresponding unit of measurement that enables performance evaluation and data aggregation.

iPAR Sub-Building Blocks

Heat Map

The Heat Map graphically illuminates the dispersion of impact intentions, within either an investor's portfolio or an asset manager's fund. The quantification and illustration of these data points communicate critical insights, which have hitherto been nearly impossible to discern across a collection of impact investments.

Portfolio Heat Map

Portfolio

Manager Heat Map

Manager

Geography

iPAR Geography 1
iPAR Geography 2
iPAR Geography 3

A visual representation of where in the world impact capital is focused and invested. This graphic facilitates unmatched insights into the portfolio, thereby allowing investors to ascertain whether their capital is going toward the people and places they hope to help.


Location Focus


Global

Applied when impact is diffused around the world and/or centered on climate change

Regional Focus Icon

Regional

Indicates eight disparate areas of the world within or across which capital may be focused

National Focus Icon

National

Reflects a strategy that is strictly focused on a specific country

Targeted Focus Icon

Targeted

Used for strategies that emphasize a subset of land(s) that may defy recognized boundaries


Manager Location

Dots used to reflect the office location(s) of asset managers (i.e. “boots on the ground”)


Actual Investments

Dots used to reflect the exact location of portfolio companies, projects, and/or properties.