Sequence 01
Module 2

Introduction to Impact Ratings

Module Overview

What is an impact rating? How can impact ratings inform investment decision-making?

An impact rating is a weighted sum of indicators that collectively cover multiple dimensions of impact.

The process of creating an impact rating challenges investors to formalize the assumptions, intuitions, and value judgments about impact that they may currently be making in a more implicit or intuition-driven way. This enables investors to test their thinking against data about the stakeholders and natural environment experiencing the impact. It also helps teams align on a shared understanding of impact that can then be scaled up.

What is an Impact Rating?

There is no one ‘right’ way to build an impact rating. Investors build different kinds of impact ratings to suit their investment contexts and impact goals. We will explore two examples, and consider the advantages and disadvantages of each.

Case Study - Frontiers Foundation

There is no one ‘right’ way to build an impact rating. Investors build different kinds of impact ratings to suit their investment contexts and impact goals. We will explore two examples, and consider the advantages and disadvantages of each.

Worksheet - Create an H/M/L Impact Rating

Now do it yourself! Our Impact Rating Worksheet can help you mock up a first draft of an impact rating in less than an hour.

ONLINE LEARNING HUB

Subscribe to Our Newsletter

Skip to content