Impact Investment Indicators: A Critical Assessment

Abstract

Commercial investing and philanthropy have traditionally been separate enterprises, with different regulations, policies, and moral justifications pertaining to each. Increasingly, however, with the emergence of innovative forms of investment such as “impact investing,” the re-labeling of donors as “social investors,” and the creation of hybrid corporate forms that adopt “double bottom line” business models, the distinction between commerce and philanthropy is being simultaneously blurred and bridged. This piece discusses how recently developed social impact indicators -- GIIRS and IRIS -- serve as bridging devices that both commercialize philanthropy and socialize investment.

Keywords: impact investing, social finance, metrics, IRIS, GIIRS, social impact, environmental impact, non-financial reporting, ESG reporting, indicators, SRI, social enterprise, governance