Overview & methodology
Quantifying impact is not only possible, it’s essential.
Our methdology has been recognised and supported by:
1 of only 4 organisations globally, and the only private sector, selected to present to World leaders on "Measuring the non-financial impact of companies"
Assessing impact is inherently complex. How do you determine how much a mobile phone changes an individual’s life? What if that phone is in the hands of a person in Uganda as opposed to the United States? Where and for whom, is the impact most significant? Why? And how do we know it’s so? That's where Vested Impact’s Impact Algorithm can help; designed using leading social science on quantifying and attributing impact, and underpinned by independent and fit-for-purpose data from the World’s leading impact sources.
Vested Impact’s "Impact Algorithm" can help investors and asset managers to understand impact and impact opportunities and integrate these factors into their portfolio construction and management process.
Vested Impact’s methodology is different to existing ESG focused metrics as it goes beyond standard ESG metrics; which assess the internal operations and self-disclosed decelerations of a company; rather Vested Impact assesses and quantifies the external material impact of a company’s products and services on their contribution to solving the World’s greatest social issues, leveraging external and fit-for-purpose impact data.
Vested Impact's algorithm seeks to answer four key questions about companies:
1. What is the overall impact of a company?
on contributing to achieving some of the World’s greatest challenges – the United Nations Sustainable Development Goals?
2. What is the company impacting? and how much?
What are the relevant social issues and how is the company contributing to that area of impact?
3. What are the negative, and indirect impacts?
that the company contributes to that hinder the achievement of the Sustainable Development Goals?
Vested Impact's metrics can be used to assess, monitor and inform both new and existing assets, funds and portfolios.
Vested Impact's metrics can be integrated into existing investment platforms, portfolios or investments.
Alongside the base metrics, Vested Impact can provide detailed and automated reports, dashboards and portfolio mananagement capabilities.
If you want to know how you can integrate Vested Impact's metrics to your assets to help your clients make better decisions, please contact us.
4. What is the overall picture, and how does the company compare
to other companies, within and beyond it’s industry?
Vested Impact gives the flexibility to you to search, benchmark and analyse based on social issues, geographies, and impact ratings.
Vested Impact’s algorithm is based on a methodology built by our experienced impact analysts, leveraging and combining the best impact measurement methodologies in the world to be able to attribute and quantify impact, focusing on the intersection between a company’s core business activities and markets, and the social issues that can create significant risks and opportunities for the company.
The algorithm pulls on over 100,000,000 data points from over 250 organisations to validate the impact across each metric; feeding into 4 core pillars that are consistent across all company’s, to produce an absolute impact rating for a company.
Beyond the initial metrics Vested Impact can also provide automatically generated Impact Reports, to support prospectus or Asset performance reports. As well as interactive dashboards and portfolio manager to give you full access and control over the data and analysis.
If you would like a copy of our methodology overview please reach out, we are not a "black box" and are happy to share!