We fully appreciate that Impact as defined and measured in most private and unlisted investments, is very different to that which can be expected and delivered by listed companies. Traditionally, listed companies are limited to disclosing their financial returns; however, we start by requiring companies to also define their targets on non-financial capital also (Human, Social and Environmental).
As far as non-financial capital targets go, companies generally have different base lines as a starting point. Hence, we define IMPACT as a company’s incremental progress towards their non-financial capital S.M.A.R.T. (Specific, Measurable, Attainable, Relevant and Time Sensitive) targets.
At a portfolio level we look at the Portfolio's SDG footprint, S.M.A.R.T targets and also through CDP, GRI, SBTi adoption, for example. At a company level we look at their individual SDG targets or stakeholder defined targets.
SAMPLE S.M.A.R.T TARGETS
• 62% of our portfolio have adopted Science Based Targets (SBTI) and several more are in the process of adopting this framework to reduce emissions
• 95% of portfolio companies have long term targets on emissions reduction
76% on renewable energy
40% on water efficiency
62% on waste reduction/packaging
• 76% of portfolio companies have shown positive progress year-on-year in 2018 on their SMART environmental capital targets
• 62% of portfolio companies have SMART targets on social capital and
• 38% focus on qualitative programs through education and awareness, capacity building, and job-related training
• 38% of portfolio companies have reported positive year-on-year progress in their 2019 disclosures on social capital – despite lack of global consensus on impact measurement
• 95% of our portfolio companies formally support the UN’s Sustainable Development Goals (SDG)
• 81% of portfolio companies have adopted S.M.A.R.T. targets on human capital aspects
• 48% of companies have specific targets on gender diversity and inclusion (female representation in workforce)
• 62% of portfolio companies have reported positive year-on-year progress in their 2019 disclosures on human capital – diversity and inclusion, workplace safety and health, and employee engagement topics
* Portfolio data as at 30 June 2020
Discover some of the long term human capital targets these companies have set by clicking on their logos: