The Global Impact Investing Network (GIIN) has launched a guide named COMPASS to evaluate and compare impact information. The methodology offers a step-by-step method to collect and standardise impact data, and to create benchmarks with peer groups, leading to more informed decisions. The guide denotes a consultative development process with academics, analytics service providers, investors, and evaluators, offering significant input and guidance.

The methodology presents three key analytical figures: scale, pace, and efficiency, to assess the impact information collected. The methodology’s framework identifies five categories of data to evaluate and compare impact results relative to peers and magnitude of the corresponding environmental or social challenge. The categories include investment context, investee context, impact results, evidence base, and a recognised social or environmental performance threshold.

Recommendations

Investors should leverage evidence to assess outcomes and normalise impact results to enable meaningful comparison and generate key analytic figures. Investors can compare impact results within peer groups, compare them to the social or environmental need, and apply insights for effective decision-making in investment strategy, selection, management, and exit. Furthermore, investors need to report the impact of their investment to multiple stakeholders, enabling transparency around impact performance and strengthening their reputations.

Overall, COMPASS offers a comprehensive guideline for investors to maximise social or environmental returns by collecting standardised impact data and making informed decisions.