Driving Capital Beyond SRI to Impact
The impact investing industry is facilitating investments that are not only socially responsible, but which also actively create positive social and environmental impact. In order to scale the impact investing marketplace, investors require an independent third-party impact ratings product that is comparable, transparent, and easy to use. Learn more about impact investing.
GIIRS, a project of the independent non-profit B Lab, will assess the social and environmental impact (but not the financial performance) of companies and funds using a ratings approach analogous to Morningstar investment rankings or S&P credit risk ratings. GIIRS will include the following features:
- Company Ratings and Fund Ratings;
- Ratings in developed and emerging markets globally;
- Aggregate ratings, as well as ratings within numerous impact areas and industry sectors;
- Social and environmental performance metrics and key performance indicators specific to different industries, impact areas, and investor preferences; and
- Benchmarking and analytics for longitudinal comparability.
What is a GIIRS Rating?
GIIRS will provide both company and fund impact ratings, each with current and historical analyses of impact performance for comparative use.
- Company Impact Ratings — a rating of the social and environmental impact of an individual company, including an overall rating, ratings in 15 sub-categories, and key performance indicators (KPI's) relevant to the company's industry, geography, size, and social mission.
- Fund Impact Ratings — a rating of a fund's impact based on the aggregated and weighted impact ratings of its underlying portfolio companies, including the aggregated Company sub-category ratings and relevant KPI's for the fund. GIIRS will also offer a Fund Target Rating product to assist fund managers in their fundraising process and a Track Record Report at the end of their fund cycle to assist in raising a follow-on fund.
- Driven by IRIS, an industry-recognized taxonomy and reporting standard co-developed by B Lab;
- Powered by the B Impact Ratings System;
- Ratings methodology developed and governed by an independent Standards Board;
- Ratings subject to a rigorous audit and review process;
GIIRS provides value to numerous stakeholders in the impact investing community:
- Fund managers and companies can raise capital from mission-aligned investors based on the social and environmental impact of their underlying businesses or portfolio companies;
- Institutional and high net worth investors can conduct better due diligence, make better investment decisions, track and improve social and environmental performance throughout the investment lifecycle, and analyze absolute and relative impact;
- Consultants, investment bankers, and other investment advisors can use data and analytical tools to improve their own proprietary products or value-added services.