Operating Principles for Impact Management (the Principles) describe the essential features of managing investment funds with the intent to contribute to measurable positive social, economic, or environmental impact, alongside financial returns.
This goes beyond asset selection that aligns investment portfolios with impact goals (for example, the SDGs), to requiring a robust investment thesis of how the investment contributes to the achievement of impact.
Strategic Intent includes both defining strategic impact objectives that are consistent with the investment strategy and managing strategic impact and financial returns at the portfolio level. Defining strategic impact objectives for the portfolio or fund should help achieve positive and measurable social, economic, or environmental effects, which are aligned with the Sustainable Development Goals (SDGs), or other widely accepted goals. The impact objectives and investment strategy should be consistent; that there is a credible expectation of achieving the impact objectives through the investment strategy; and that the magnitude (scale and/or intensity) of the expected portfolio impact is proportionate to the size of the investment portfolio.
OPERATING PRINCIPLES FOR IMPACT MANAGEMENT
There should also be a process to manage impact achievement at the portfolio level, similar to that of managing financial returns. The objective of the process is to establish and monitor expected impact performance for the whole portfolio, while recognizing that impact may vary across individual investments in the portfolio.
Our blog series on the Impact Investing will look at each of the operating principles for impact management in more detail. Please visit our Investor sector to see how WOIMA solutions fit into the Impact investment schemes and provide excellent return on investment for investors and represents exactly the main principles for impact investing.
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