what to reportOverview
Together, the Guiding Principles and What to Report are designed to balance standardization and flexibility. These resources are complementary and should be read together.
Standardization
The “What to Report” recommendations reflect feedback from participants in the public consultation on the report content that could and should be standardized
Flexibility
The Reporting Norms are adaptable to context and flexible to the needs of individual organizations. The Guiding Principles promote consistency in judgment calls made by report preparers
What to Report synthesizes the information that participants in the public consultation agreed is relevant for an impact performance report. Report preparers will need to conduct their own analysis to determine what and how much of the suggested information to include, based on the specific impacts experienced by stakeholders and the natural environment and on the needs and preferences of their particular asset owners and allocators.
The Guiding Principles support report preparers in the exercise of this discretion through a shared understanding of the purposes and users of impact performance reports and of the qualitative characteristics that make reported information useful.
Entity Overview & Impact Thesis
Provide an overview of the reporting entity and the time period covered, as well as the impact thesis/pathway.
1.1 Entity Description
Describe the reporting entity and the time period covered. If the reporting entity is part of a larger organization, also provide a brief overview of the organizaton.
1.2 Impact Thesis
This may take any form of Impact Pathway, including but not limited to a theory of change, logic model, outcomes chain, or system map. Include the social and/or environmental needs or challenges addressed, the affected stakeholders and intended outcomes, and the role of investor contribution in the thesis
Impact Management Approach
Describe the entity’s impact management process, detail how stakeholders are identified, and describe how impact data is collected and used.
2.1 Process, Standards, & Frameworks
Describe how impact influences decision-making throughout each stage of the investment process (pre-screen through exit), referencing third-party or in-house frameworks, standards, or tools used (e.g., screens, analytical techniques, ratings, scorecards). This should include both impacts of investees/assets and the investor’s contribution to those impacts, and may include how ESG and/or financial considerations are integrated.
2.2 Identification of Stakeholders, Outcomes, & Impact
Describe how stakeholders, and the outcomes and impacts significant to stakeholders, are identified by the entity and/or by individual investees or assets. Describe the process of stakeholder engagement and assessment of the significance of impacts to stakeholders, including how stakeholder views inform decision-making, and any methodologies used. Describe the process by which negative impacts, both expected and unexpected, are identified and managed, including environmental, social, and human rights.
2.3 Usage of Data
Describe how the entity collects, manages, and uses impact data, including how data ownership, privacy issues, and ethical and commercial issues are managed.
Signatories to the impact principles
Impact Performance
Provide an overall assessment of impact performance covering both positive and negative outcomes.
3.1 Management Commentary
Present an overall assessment of impact performance. This may include reflections on drivers of past performance and outlook for future performance; assessment of the relationships between different types or dimensions of impact, or between aspects of impact and aspects of financial performance; what decisions have been made to manage any tradeoffs; and learnings that emerged during the period.
3.2 Impact Performance
Relevant content for this section includes:
- Outcomes and impacts of investees/assets on stakeholders and the natural environment
- Both positive and negative, intended and unintended results
- Measurement as far down the impact pathway as possible (i.e., outcomes or impacts as opposed to proxy metrics of activities or outputs)
- Investor contribution, including financial and non-financial
- Results relative to entities’ own targets and relative to sustainability thresholds
- Evidence that the content presented is a faithful representation of the experiences and views of the stakeholders experiencing the impact
- Indication of connections and relationships between impact and financial performance
- Results across the five dimensions of impact and the associated data categories
- If appropriate, disaggregation of results by stakeholder characteristics (e.g., gender, race/ethnicity, and other social identifiers)
- If appropriate, presentation of performance information using standardized thematic taxonomies, ESG and responsible investment frameworks, and/or metric sets and
- Definitions of terms and metrics; explanations of data sources, assumptions, calculations, and other methodological notes; explanations of areas of the report where data and evidence are relatively stronger or weaker and detail about the time period(s) to which the reported information corresponds.
3.3 Unintended and/or Negative Impacts
Include those of investee companies and/or the reporting entity itself, along with actions taken to remedy the impact and/or avoid similar impacts in the future.
Governance
Outline who oversees impact within the organization, explain the governance structures in place for DEI, and if relevant, also describe any impact-related governance from the parent company that applies to the entity.
4.1 Entity Governance
Describe the governance body(s) (which can include a board-level or internal committee or equivalent body) or individual(s) responsible for oversight of impact for the entity.
4.2 Diversity, Equity & Inclusion
Describe the entity’s governance framework for diversity, equity, and inclusion (DEI). The Reporting Norms are intended to be used in combination with other reporting mechanisms specifically focused on DEI.
4.3 Parent Company Governance
If relevant, describe the governance related to impact and sustainability of the entity’s parent company that apply to the entity.
Case Studies
Presents in-depth example(s) of the impact performance of the entity’s investments.
Describe the process for selecting the case, the basis for selection, and the question(s) the case study seeks to answer. Provide an overview of the investee(s) or asset(s) serving as the subject(s) of the case study; and present the impacts of the investment in a manner consistent with “3. Impact Performance.”
Independent Review
Conclusion of independent reviewers (if applicable).
If the report preparer chose to commission any type of independent review, explain the type chosen and why, and present the conclusion of the independent review.
Practical Guides to Impact Reporting
Implementation Guides provide practical tips, resources, and examples to help apply the Impact Performance Reporting Norms and prepare clearer, more effective impact reports.