IMPACT PRACTICE VERIFICATION
We assess the degree to which an investor’s impact management practices are aligned with market standards.
IMPACT PRACTICE VERIFICATION
We assess the degree to which an investor’s impact management practices are aligned with market standards.
Our Approach
We assess an investor’s impact management (IM) practices throughout the investment process—including strategic intent, origination and structuring, portfolio management, and impact at exit—against an industry standard (e.g., Operating Principles for Impact Management).
We examine each component of impact management along three dimensions:
Compliance
Compliance of the system with a threshold level of practice
Quality
Quality of the system’s design, in terms of its consistency and robustness
Depth
Depth of particular sub-components of the system, focused on completeness
Assessment Methodology
We rate the degree of alignment to industry standards (e.g., Advanced, High, Moderate, Low) to establish a benchmark against which individual clients and the impact investing market as a whole can track and evaluate progress.
ADVANCED
Limited need for enhancement
HIGH
A few opportunities for enhancement
MODERATE
Several opportunities for enhancement
LOW
Substantial enhancement required
BlueMark reviews our clients’ IM tools and processes for the purpose of assessing the extent to which there is alignment with industry standards. BlueMark’s proprietary methodology is informed by the specific text and implementing guidance for the relevant industry standard along with BlueMark’s retained knowledge of the state of IM practices.
Asset Methodology
We rate the degree of alignment to industry standards (e.g., Advanced, High, Moderate, Low) to establish a benchmark against which individual clients and the impact investing market as a whole can track and evaluate progress.
ADVANCED
Limited need for enhancement
HIGH
A few opportunities for enhancement
MODERATE
Several opportunities for enhancement
LOW
Substantial enhancement
required
BlueMark reviews our clients’ IM tools and processes for the purpose of assessing the extent to which there is alignment with industry standards. BlueMark’s proprietary methodology is informed by the specific text and implementing guidance for the relevant industry standard along with BlueMark’s retained knowledge of the state of IM practices.
The BlueMark Value-Add
We provide clients with benchmarks for comparison to market practices and advise on areas of strength as well as outstanding gaps to improve practices and align with market standards, thereby better positioning clients to achieve impact objectives and attract impact-oriented capital.
The Types of Clients We Serve
We serve a variety of impact investors, including asset managers, asset allocators, and companies. There are many types of organizations that have or are pursuing IM practice verifications. There are more than 100 impact investors that have signed on to the Operating Principles for Impact Management standard – and as a result have committed to independent verification of their IM practices. These organizations include private equity firms, global alternative asset managers, wealth management firms, and development finance institutions of various sizes and with different degrees of experience with impact investing. To date, we have completed 30+ IM practice verifications and shared the most recent results in our 2021 ‘Making the Mark‘ report.
The Best Timing for Client Verification
An impact management practice verification may be appropriate at any step of the impact investment journey. Typically, the clients we work with verify their IM practices every 1-3 years, based on the frequency of IM system changes and the specific assurance requirements.
The Industry Standards We Use for Verification
We draw on a variety of impact investing industry standards, depending on the particular type of client, investment strategy and asset class. These standards include but are not limited to:
- Operating Principles for Impact Management (Impact Principles)
- Principles for Responsible Investment (PRI)
- SDG Impact
- Social Bond Principles (SBP)
- Sustainability-Linked Bond Principles (SLBP)
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BlueMark was a natural choice for Calvert Impact Capital when we were searching for an independent verification firm to verify the alignment of our practices to the Operating Principles for Impact Management. They bring a ‘right fit’ approach that is flexible enough to realistically assess our unique business model and strategy, yet is consistent and trusted throughout the industry. Their team helped us to gain the insight we needed to continue developing robust impact management systems to ensure integrity in our processes, documentation, and implementation. The industry insight they brought to the engagement and have contributed back to the industry has been invaluable.
Calvert Impact Capital
Caitlin Rosser, Senior Officer, Impact & Communications