In October of 2007, the Rockefeller Foundation convened investors who were seeking financial as well as social and environmental returns on their investments, to determine how to effectively bring more capital into sector. The group, later named the Rockefeller Impact Investing Collaborative (RIIC), identified a lack of clear, consistent, ‘credible impact information as the strongest impediment to achieving greater scale in this sector.’ RIIC commissioned Social Venture Technology Group (SVT) to conduct a study of the top existing methods to measure impact and advise the group on how to move forward.
SVT’s thorough analysis culminated in the recent release of Catalog of Approaches to Impact Measurement. 24 methodologies were chosen after investors, practitioners, social entrepreneurs were interviewed in some 16 countries across 5 continents. The result: HIP was identified as the “best hope” in terms of a methodology that can systematically surface the interrelationship between impact and profitability, which investors identified as a top priority.
“All the Rockefeller impact investors and other investors we consulted said that impact information would be most valuable if it illuminated the relationship of financial return to impact. However, our analysis identified only one approach that explicitly intends to address this need: the HIP (Human Impact + Profit) Framework.”
READ MORE (see the bottom of page 11!)
“The HIPâ„¢ (Human Impact + Profit) Scorecard and Framework quantifies human, social and environmental impacts, how those impacts drive financial results, and what management systems are required to sustain success over time. The HIP approach is founded on the premise that boosting net positive human impact drives higher profits for business, and increased economic sustainability for organizations…For investors, the HIP Scorecard and Framework can be applied to investment strategy, asset allocation, due diligence, portfolio review and reporting to social investors (including philanthropic donors and, for governmental entities, taxpayers). HIP Investor plans to implement the Framework as a management system in 2008.”
To view or download the full publications CLICK HERE. See HIP on page 38!
NOTE: SVT Group has been a collaborator with HIP on several projects. This SVT report was completed independently of this relationship.
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