Operating Principles for Impact Management

The Principles

THE PRINCIPLES

The Principles are intended to be a framework for investors for the design and implementation of their impact management systems, ensuring that impact considerations are integrated throughout the investment lifecycle. They may be implemented through different types of systems, each of which can be designed to fit the needs of an individual institution. They do not prescribe specific tools and approaches, or specific impact measurement frameworks. The expectation is that industry participants will continue to learn from each other as they implement the Principles.

The Principles are scalable and relevant to all types of impact investors and sizes of investment portfolios, asset types, sectors, and geographies. The Principles may be adopted at the corporate, line of business, fund, or investment vehicle level. Asset managers with a diverse set of investment products may decide to adopt the Principles for only specific funds or vehicles that they consider impact investments and need not adopt the Principles for the entirety of their assets. As well, asset owners that invest in bonds, funds, and other investment vehicles may apply the Principles to their own investment processes. The Principles do not have to be followed by the investee company, fund, or asset.

The way in which the Principles are applied will vary by type of investor. Asset owners and their advisors may use the Principles to screen impact investment opportunities. Asset managers may use the Principles to assure investors that impact funds are managed in a robust fashion.

 

Impact Investing