Arguably the most critical gap within the impact investing sector is the lack of data and analysis to inform investors and facilitate the effective and efficient flow of impact capital to grow and strengthen the sector. Investors are demanding market measures and comparable metrics to provide evidence of the risks, progress, and growth potential of the sector.

To address this vital gap in the ecosystem, intermediaries, academics, and traditional financial analysts are entering the impact investment sector with hopes of developing the tools, infrastructure and measurement standards to strengthen and eventually scale the sector. Developed by members of the Global Impact Investing Network (GIIN), the Impact Reporting and Investment Standards (IRIS), is making large headway in is developing a system of common definitions and metrics to be applied across geographies and sectors of investment. IRIS has just released the first report to further their mission of creating a common framework for defining, tracking and reporting on the performance of impact investments.

In addition to IRIS, the Global Impact Investing Ratings System (GIIRS) was developed by the non-profit B Lab as a tool to assess the social and environmental impact of companies and funds using a ratings approach similar to Morningstar investment ranking or S&P credit risk ratings. GIIRS aims to provide investors with an independent third-party impact ratings product that is easy to use, comparable and transparent.

IRIS’s first data report presents aggregated performance data from 2,394 organizations that have worked with and received capital from leading impact investment intermediaries. This report signals a new level of sophistication for the impact investing industry by providing an early glimpse into industry characteristics and the performance of organizations receiving and seeking impact investment capital. With the release of this report, IRIS hopes to drive widespread adoption of IRIS and to encourage impact investors, funds, and mission-driven organizations to strengthen future market intelligence by voluntarily contributing data for analysis through IRIS data collection partners.