HistoryImpact Frontiers emerged out of efforts by diverse investors to more fully incorporate impact into decision-making

Origins

Impact Frontiers originated from Root Capital’s efforts to integrate a third dimension of impact into the two-dimensional ‘efficient frontier’ of financial risk and return. To see if others could do the same, twelve investors joined in the first Impact Frontiers Collaboration, where they translated and implemented the integrated approach across a diverse set of portfolios totaling $15 billion. From these funds’ experience, Impact Frontiers synthesized a set of generalizable steps relevant to a wide range of investors.

As it grew, the initiative migrated from Root Capital to the Impact Management Project, a non-profit forum for building global consensus on how to measure, manage and report impacts on sustainability – thus serving as a natural platform for industry-wide collaboration.

Read about our journey in this interview in Impact Entrepreneur

Our Timeline: 2015 - Present

2015

Root Capital implements “Efficient Impact Frontier” Approach

2017

"Toward the Efficient Impact Frontier" published in SSIR

2018

First investor cohort launched

2019

Impact Frontiers migrates to Impact Management Project

2020

Root Capital implements “Efficient Impact Frontier” Approach

2020

Handbook published synthesizing findings of first cohort

2021

Six investor cohorts launch; IMP concludes

2022

Cohorts launched in partnership with CASE @ Duke's Fuqua School

2023

Field-building resources published for three frontier topics: systems mapping, ABC of impact, and impact portfolio construction

2024

Version 1 of Impact Performance Reporting Norms published; Five Dimensions of Impact updated based on a social equity audit and public consultation

Our Timeline

2015

Root Capital implements “Efficient Impact Frontier” Approach

Impact Frontiers financial intergration

2017

“Toward the Efficient Impact Frontier” published in Stanford Social Innovation Review

2018

First Impact Frontiers cohort launched at Root Capital, within 13 investors applying the approach to portfolios exceeding $15bn

2019

Impact Frontiers migrates to Impact Management Project

2021

Impact Frontiers launches six cohorts, independently and with partners in Asia and Canada

Impact Frontiers financial intergration

2020

Impact Frontiers cohort concludes “How Investors Can Integrate Social Impact with Financial Performance to Improve Both” published in Stanford Social Innovation Review “Impact-Financial Integration: A Handbook for Investors”

Our Timeline

2015

Root Capital implements “Efficient Impact Frontier” Approach

2018

First Impact Frontiers cohort launched at Root Capital, within 13 investors applying the approach to portfolios exceeding $15bn

Impact Frontiers financial intergration

2020

Impact Frontiers cohort concludes “How Investors Can Integrate Social Impact with Financial Performance to Improve Both” published in Stanford Social Innovation Review “Impact-Financial Integration: A Handbook for Investors”

Impact Frontiers financial intergration

2017

“Toward the Efficient Impact Frontier” published in Stanford Social Innovation Review

2019

Impact Frontiers migrates to Impact Management Project

2021

Impact Frontiers launches five cohorts, independently and with partners in Asia and Canada

Our Timeline

2015

Root Capital implements “Efficient Impact Frontier” Approach

2018

First Impact Frontiers cohort launched at Root Capital, within 13 investors applying the approach to portfolios exceeding $15bn

2018

First Impact Frontiers cohort launched at Root Capital, within 13 investors applying the approach to portfolios exceeding $15bn

2018

First Impact Frontiers cohort launched at Root Capital, within 13 investors applying the approach to portfolios exceeding $15bn

2018

First Impact Frontiers cohort launched at Root Capital, within 13 investors applying the approach to portfolios exceeding $15bn

2018

First Impact Frontiers cohort launched at Root Capital, within 13 investors applying the approach to portfolios exceeding $15bn

2022 and onwards

In 2022, Impact Frontiers incorporated the resources developed by the Impact Management Project (IMP)’s community of practitioners, following the planned conclusion of the IMP in 2021. With this transition, Impact Frontiers became a hub where investors can:

  • Learn about concepts such as the five dimensions of impact and the four investor contribution strategies;
  • See how other investors are integrating these norms alongside financial risk and return into their investment practices;
  • Find opportunities to engage with communities of peers; and
  • Contribute to the development of norms in areas of practice where standards and guidance do not yet exist.