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Navigating Transparency in Impact Investing

In the Impact Investing world, transparency is everything.


Impact investors carry a huge responsibility: they must deliver returns and impact whilst reporting transparently to both investors and stakeholders.


The rule of thumb is simple: the higher the quality of information, generally the more informed decisions are. For investors, this allows for investment decisions that align social and environmental values with financial goals.


However, a major challenge facing asset managers and investors has been the lack of a standardised approach for reporting impact performance.


Over the years, industry experts including the Impact Management PlatformImpact Principles, and The Global Impact Investing Network have introduced a multitude of best practices and standards for impact reporting. 


Unfortunately the sheer volume of resources (which are constantly evolving) poses additional challenges to new asset managers looking to embark on their impact investing journey. 


This complexity results in vastly different metodologies across different asset managers, making comparability difficult and challenging for investors who want to assess the true impact of their investments.


To address this reporting challenge, Impact Frontiers, with the support of The Rockefeller Foundation, has recently launched its inaugural "Impact Performance Reporting Norms (Version 1)" guide for investors in private markets. 


The Impact Performance Reporting Norms represents the culmination of collective insights and shared expectations for the reporting of impact results by asset managers in private markets.


It is designed to standardise how asset managers track and report their social and environmental impact.


This industry guide was the result of an 18-month consultation between Impact Frontiers and over 350 impact professionals, including Bintang Capital Partners.


Below are some key elements of the Impact Performance Reporting Norms that our team found particularly insightful:

  • Standardised "Impact Thesis": Drawing on concepts such as the "Theory of Change" or "Impact Pathway" to define an asset manager's strategic impact intent. As an impact investor, Bintang has adopted the Impact Management Platform's "Impact Pathway” to develop its impact Theory of Change at both the fund and investee company levels.

  • Guidance for Complex Processes: Offering valuable direction for processes such as identifying and engaging with stakeholders and consolidating impact metrics into a portfolio-level reporting framework.


Bintang Capital Partners applauds the efforts made by Impact Frontiers and we eagerly embrace this new era of transparency and comparability ushered in by the Impact Performance Reporting Norms. 


We feel that these norms will play a pivotal role in guiding the preparation of Bintang's inaugural impact report.


To access the full Impact Performance Reporting Norms, please visit: https://lnkd.in/ggAJ6zPh

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