ACTIONS FOR:

Field Builders & Networks

Network organizations and field builders will play a key role in supporting this strategic plan and realizing our vision of a future where all investments contribute to positive social and environmental impact. There are a number of recommended actions in this Roadmap that they are especially well suited to advance, outlined below. 

1. Identity

Establish Principles for Impact Investing

What

Develop and promote clear best practices

WHY

To address the current fragmentation of approaches and lay a foundation for analysis, rating, and comparing impact across investments within a given theme

who

Field building organizations with consultants, supported by a broad swath of leading investors

when

Continue ongoing efforts, and test and adopt best practices throughout the industry over the next three to five years

1. Identity

Share Best Practices for Impact Measurement, Management, and Reporting

What

Develop and promote clear best practices

WHY

To address the current fragmentation of approaches and lay a foundation for analysis, rating, and comparing impact across investments within a given theme

who

Field building organizations with consultants, supported by a broad swath of leading investors

when

Continue ongoing efforts, and test and adopt best practices throughout the industry over the next three to five years

2. Behavior and Expectations

Align Incentives with Impact

What

Update existing incentives structures so that allocation and compensation decisions reflect impact performance

WHY

To increase accountability and demand for impact

who

Asset owners and asset managers

when

Immediately, with steady uptake over five to seven years, enabled by standardized impact measurement practice

4. Tools and Services

Develop Ratings for Impact

What

Build ratings that assess a range of factors related to impact and incorporate impact into existing indices and ratings

WHY

To enhance the credibility and comparability of impact investment products through rigorous third-party research and thus reduce diligence costs

who

Ratings agencies, including boutique firms and mainstream ratings actors

when

Over the next five to seven years, with efforts to analyze impact performance beginning immediately

5. education

Train Finance Professionals

What

Develop training programs on impact investing for financial industry professionals, such as wealth advisors and investment managers at large financial firms

WHY

To translate client demand into capital deployed by growing advisors’ awareness of impact investing opportunities

who

Industry associations of finance professionals (to develop third-party offerings), large financial firms (to develop in-house trainings) and business schools (to develop MBA curricula)

when

Over the next few years

5. education

Support the Development of Businesses Focused on Impact

What

Expand and increase the effectiveness of services that build entrepreneurs and project developer capacity

WHY

To reduce capacity gaps so that growth in demand for impact capital matches growth in supply

who

Incubators, accelerators, business consultants, and direct investors

when

Immediately and ongoing

6. Policy and regulation

Create an Environment Conducive to Impact Investing

What

Develop regulations that incentivize product development, impact measurement and reporting, and the provision of capacity-building support

WHY

Drive behavior change by shaping the environment in which impact investors and businesses operate

who

National governments, with support from practitioners and industry-advocacy groups

when

Varies depending on national or regional policy context