#10 GKC | 🤝 Know Your Investors - Impact Investing Frameworks 101

💡 GOOD Insights

Welcome to the Know Your Investors Series, in collaboration with Turbo Net Zero.

Turbo Net Zero is a pure-play sustainability consultancy company focuses on delivering ESG value-creation solutions for corporates and investors.

We’ll discuss about the evolving field of impact investing across Southeast Asia in three parts.

1. Overview of global impact investing frameworks (Today’s Episode)

2. Sector-specific impact themes within SEA

3. Case studies of successful impact investors and companies in SEA

Let’s get started!

Impact Investing: A Rapidly Growing Opportunity in Southeast Asia and Beyond

Impact investing is an investment approach that intentionally seeks to create both financial return and positive social or environmental impact that is actively measured. There are four key elements that serve as the foundation for impact investing:

• Intentionality: Impact investments intentionally contribute to social and environmental solutions.

• Financial Returns: Impact investments seek a financial return on capital that can range from below market rate to risk-adjusted market rate.

• Range of Asset Classes: Impact investments can be made across asset classes, including equities, fixed income, real estate, private equity, venture capital, and infrastructure.

• Impact Measurement: The investor's commitment to measure and report the social and environmental performance of underlying investments.

As capital increasingly flows towards investments that generate measurable social and environmental benefits, Southeast Asia is emerging as a key destination for impact-driven strategies.

The Importance of Impact Investing Frameworks

• Develop Standardized Metrics: Simplifies the process of measuring and comparingimpact across different investments and organizations

• Enhance Transparent Reporting: Builds trust with stakeholders by demonstrating the commitment to openness and accountability.

• Benchmarking: Enables investors to benchmark their performance against industry standards and best practices.

• Increase Credibility/Attracting Clients: Attracts capital by applying the recognized frameworks to enhance credibility.

Global Frameworks

While many impact investing frameworks exist, this overview highlights a few of the most widely recognized frameworks, each with its own specific focus and application scenario.

a. IRIS+

The Global Impact Investing Network (GIIN), an internationally recognized authority on impact investing, developed the IRIS+ system to enhance the scale and effectiveness of impact investing through standardized impact measurement and management.

IRIS+ is a widely adopted framework for assessing the social, environmental, and financial performance of organizations. It can be used by various stakeholders, including impact investors, fund managers, nonprofits, and other entities focused on social and environmental impact.

IRIS+ provides a set of tools and guidance that translates impact intentions into measurable results. Among these tools, the IRIS+ Metrics are particularly essential, which are standardized metrics for organizations to measure their impact performance.

b. Operational Principles for Impact Management

The Operational Principles for impact management, also known as The Impact Principles or The 9 Principles, was launched in April 2019. It serves as a comprehensive framework for guiding investors to design and implement their impact management systems. The framework ensures that impact considerations are integrated throughout the investment lifecycle.

The framework offers flexibility, allowing it to be tailored to fit the needs of various investors. It is also versatile and applicable across different asset types, sectors, and geographies.

In terms of application, asset managers may adopt the principles for specific funds or vehicles that are considered as impact investments. As for asset owners that invest in bonds, funds, and other investment vehicles, they can apply them to their investment processes to screen for impact opportunities.

c. Social Value International Principles

For over 15 years, Social Value International (SVI) has led the establishment of global standards for measuring and managing social impact, which are widely adopted by social enterprises, investors, academics and policymakers.

There are seven principles of social value form the foundation of SVI’s work, guiding best practices in accounting and reporting social value across all sectors. These principles create a comprehensive framework that captures all material outcomes, going beyond just measuring progress toward outcomes or goals. This approach ensures continuous improvement and accountability, helping organizations optimize the value they create for stakeholders.

d. The B Impact Assessment Tool

B Lab is a nonprofit organization that certifies B Corporations (B Corps), which are companies that meet high standards of social and environmental performance, accountability, and transparency. The first step to get a B Corps certification is receiving a minimum verified score of 80 points on the B Impact Assessment (BIA).

The BIA, used by over 150,000 businesses, is an essential digital tool designed to help organizations measure, manage, and improve their positive impact performance. This assessment is structured around five stakeholder-focused "Impact Areas” —Governance, Workers, Community, Environment, and Customers. Each impact area is organized by “Impact Topics” that describe the specific dimensions of impact relevant to that stakeholder.

e. UN Sustainable Development Goals (SDGs)

SDGs provides a global framework for aligning investments with sustainable development goals, which is widely used in impact investing. A set of 17 global goals designed to address social, economic, and environmental challenges, providing a thematic map to guide investment strategies and measure impact. Many impact investors align their investments with the SDGs to ensure their activities contribute to global development priorities.

Key Takeaways

The impact investing frameworks are essential tools to enable clear benchmarking and reporting, making it easier to track progress and measure impact effectively.

As impact investing continues to expand, particularly in regions like Southeast Asia, these frameworks will play a critical role in directing capital towards sustainable solutions, fostering long-term value creation, and driving positive change across various sectors.

Next week, we’ll explore sector-specific impact themes in SEA, identifying opportunities for growth and showcasing how impact capital is making a difference in the region’s most promising sectors.

Again, thank you Turbo Net Zero for this amazing content collaboration.

If you are an impact investor looking to implement ESG strategies OR corporates exploring impact measurement strategies, hit Kenny up!

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Hope this is helpful! 🙂 

Feel free to reach out via LinkedIn or email if you have more questions.

References

• Invesco Report

• World Economic Forum Report: From the Margins to the Mainstream

• GIIN Core Characteristics of Impact Investing

• Impact Investment in Southeast Asia: An overview and framework Yew, J.L. Au, W.C., & Drencheva, A. (2023, in press)

• IRIS+ Core Metrics Set

• How the B Impact Assessment is scored

🎉 GOOD News

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 💡Research | MY 10 Issues Facing The Indigenous And Native Communities In Malaysia

 💡Insight | SG Time for a new VC model in SEA?

🏆 GOOD Opportunities

 🚀 Forum | IRENA Youth Forum 2025 | Due 24 Sep

 🚀 Competition | Global EdTech Startup Awards | Due 30 Sep

 🚀 Competition | D-Prize Global Competition | Due 3 Nov

💁‍♀️💁‍♂️ GOOD People

🙋‍♀️ Kenny Chen | Partner @ Turbo Net Zero

🙋‍♂️Dondi Hananto | Partner @ Patamar Capital

🙋‍♀️ Adrian Suharto | Director, APAC @ Robertsbridge

❤️ Amazing Content You’ll Like …

Fellowships Database - a curated list of fellowship opportunities for SEA impact founders (link)

Case Studies of Successful Fundraising - how impact startups raised from various types of impact funding (link)

The story of JALA - A university project turned ID shrimp farming leader empowering 18,500 farmers (link)

👍 How I Can Help

Whenever you’re ready, here’s how I can be helpful:

1. Let’s Talk Impact - office hours for impact founders to talk about startups or personal if needed (book a timeslot)

2. Fractional Chief of Staff - Chief of Staff for fundraising / strategy / project management work (reach out via LinkedIn)

3. Sponsor Our Newsletter - work exclusively with impact brands / tools for impact founders (reach out via LinkedIn)

For daily insights, follow me on LinkedIn.