This document discusses impact investing and social performance measurement. It outlines two main approaches to measuring social performance: standardized metrics that allow benchmarking across sectors but lose some relevance and depth, and customized mission-specific metrics that are more actionable for individual organizations but less comparable. Examples are provided of both a standardized GIIRS fund rating and a customized evaluation framework focused on increasing health and well-being outcomes. Grassroots' work assisting portfolio companies through standardized SPI4 and GIIRS assessments and developing customized metrics is also summarized.

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Frontier Social Investing:
Putting Impact First
March 14, 2016

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About Grassroots
Have launched and co-managed/ advised 5 impact funds
Funds are first or second round institutional equity investors and
play active role in governance
Created and implement social performance frameworks for 5 equity
and debt funds
Provide assistance in implementation of Social Performance
Management (SPM) tools
GIIRS:Assisted 18 portfolio companies through rating process and annual
updates; scores in top 20%
SPI4: member of ALINUS working group to streamline due diligence efforts
Outcomes: member of working groups to develop more robust outcomes
indicator

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Impact Investment Landscape
Impact
Agnostic
Negative
Screen
Positive
Impact
Traditional Investors
(Banks, Private
Equity, Hedge Funds)
Development
Institutions,
Government Funds,
Socially Responsible
Investors, HNWIs,
Family Offices
Foundations, Non-
profits, Research,
“Impact First” Funds

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Standardized
SPI4 (microfinance)
IRIS
GIIRS
Comparable, can benchmark
and aggregate to portfolio-
level but lose relevance, depth
Customized
PPI
Food Security
Wellness Index
Health Outcomes
Tied to mission, actionable but
lose comparability across
sectors, more difficult to
collect
Measuring Social Performance

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India Financial Inclusion Fund Prospero Microfinanzas Fund
Example: GIIRS Fund Ratings

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Example: Mission-specific Evaluation
Goal: Increase well-being of poor women and their families
#
Beneficiaries
of Health
Education
Economic
resilience
Health Access
Physical Health
Health SecurityHealth Behavior
#
Beneficiaries
of Health
Insurance
# of Health
Savings
Accounts
# of Health
Loans
# Health Care
Providers
Client
satisfaction
with Health
Care
Providers
Note: the outputs and outcomes shown above are examples. Each intervention will have
customized objectives, targets, and indicators.