IRIS Report Shows Many Impact Investing Recipients Are Profitable; But More Study Needed
Dec 14, 2011
Just a few years ago the idea of common indicators for the impact investing space was still abstract and vague. In 2010, the JP Morgan report on the state of the impact investing industry indicated that only 2 percent of impact investors used third party systems for social impact measurement; the vast majority applied proprietary systems. But the quest for a common language and comparable metrics has come a long way already and just recently another milestone was achieved: The team of Impact Reporting and Investment Standards (IRIS) released its very first performance data report contributing to data-driven market intelligence for the impact investing industry.
The report provides insight into data collected from close to 2,400 mission-driven organizations. Almost 1,900 of them are microfinance institutions thanks to a partnership with Microfinance Information Exchange (MIX); the remaining organizations stem from the portfolios of seven pioneering impact investors and reported their results through ANDE and PULSE.
The good news for profit-seeking investors: The report shows that the majority of organizations that submitted data are profitable, specifically 70 percent of the microfinance institutions and 63 percent of portfolio organizations across a variety of sectors and regions.