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 20+ IM practice verifications and shared the results of our first 13 in our April 2020 report, “Making the Mark.”

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:

Learn more about our other impact verification services — Mandate and Reporting.

Tideline 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