Solving tomorrow’s problems today
Every investment has an impact
At IEL, we believe that invested capital is one of the most powerful drivers of change. We also believe that investments in environmental and social impact need not be at odds with making a financial return. We are not alone: the worldwide impact investing market is estimated to be $1.16 trillion, and it's projected to triple in the decade ahead. While growing interest and industry size are positive developments, there is also a need for greater rigor and more precise measurement.
Today’s sustainable investment landscape includes funds with no impact claims, or vague claims of impact without empirical support. On the other extreme, there are funds making investments with significant impact but operating with largely unmet capital needs.
A new, robust analytic methodology is needed to resolve existing market inefficiencies, close crucial market gaps, and provide greater transparency. The appropriate rating methodology would intuitively distinguish funds based upon their authenticity, actual impact and financial performance.
At IEL, we propose to solve these challenges: helping investors to reach their goals, connecting capital to significant, verifiable impact, and ultimately, promoting the next chapter of human flourishing.
Impact Assessment & Measurement
The impact investing industry struggles to fill a critical void:
The absence of a universally recognized measurement and assessment framework, coupled with a lack of rigorous reporting standards. These glaring deficiencies mean that consistent evaluation is lacking across investment strategies.
This creates a formidable barrier for investors seeking to discern the authenticity and effectiveness of funds purportedly dedicated to making a positive impact, rendering it exceedingly difficult for ordinary investors to distinguish between sincere, genuine initiatives and superficial claims.
Inconsistent market labels have failed to distinguish sustainable, socially-responsible, ESG and impact strategies clearly.
The Impact Authenticity Score
IEL’s standardized rating system, the Impact Authenticity Score (IAS) assesses the authenticity and probability of specific investment products and strategies to deliver both desired, non-financial results and financial returns relative to market benchmarks.
IAS assesses the authenticity and rigor which an investment manager brings to their process to achieve their stated impact.
IAS evaluates a manager's likelihood of achieving their stated impact objectives with an intuitive yet robust analytical framework, empowering asset owners and investors to better achieve their specific, non-financial objectives.
We believe IAS will become the impact investment measurement standard long sought by the industry.
