Our vision on impact and impact measurement
As an investor for impact we understand finance to be transformational, and define it as directing money so that it benefits people and the environment over the long-term. The impact we are interested in – for each of our investment strategy - is the effect of our activities on society and the environment.
For our inclusive finance investment strategy this impact is about providing access to finance to those traditionally excluded and building robust, sustainable and professional financial institutions that are key actors in developing an accessible, well-functioning and inclusive financial sector that fuels social and economic development.
We realise that our role and efforts in this complex web of change are can only to a limited extend be captured in quantitative metrics and indicators. We also believe that investing for impact moves beyond providing capital and requires a strong intention and a holistic and long-term approach, as opposed to one-dimensional solutions. With this approach Triodos differentiates itself from others in the capital-providing space.
To understand our vision and the extent to which we’re delivering on it, means sharing stories that illustrate the whole picture. These stories provide the essential context and background for our activities. They illustrate our ‘theory of change’. They are not ‘cherry-picked’ to highlight work that is atypical of our wider efforts.
The quantitative indicators are a part of the whole story. That means indicators, such as ‘number of loan clients reached’, ‘percentage female clients’ and ‘percentage rural clients’, are not a goal in itself; they are pieces of information that are part of the broader picture. For that reason, we neither set specific goals for indicators nor do we compare them to last year figures, simply because a higher number doesn’t necessarily mean more impact. For instance, financing a small an innovative financial institution which will drive financial inclusion in rural areas could mean more impact than financing an established financial institution in a mature market.
This publication aims to assess and communicate the impact of our Inclusive Finance investments in a transparent and meaningful way. For the reader’s convenience we avoid academic terminology, such as impact, outcomes, outputs, and so on.
About Triodos Investment Management
The Triodos inclusive finance funds are managed by Triodos Investment Management. Triodos Investment Management, a wholly-owned subsidiary of Triodos Bank, is a globally recognised leader in impact investing and connects a broad range of investors who want to make their money work for positive change with innovative entrepreneurs and sustainable businesses doing just that.
About Triodos Bank
Triodos Bank is one of the world’s leading sustainable banks. Established in 1980, we have pioneered a groundbreaking, commercially successful approach to money that values people, the environment and culture, as well as profit.