Fundo Vale is a Brazilian non-profit, ESO, and investment fund. Along with their funder Vale, they support innovative solutions restoring Brazilian rainforest and climate-based solutions. For due diligence and climate impact measurement, they use an internal impact framework called Gimpact, which they developed by drawing on aspects of IMP, IRIS+, GIIN, IFC, and SDGs. Gimpact can also be used to avail carbon credits using an evaluation matrix. The framework includes 65 impact indicators, 15 of which are common to all their supported SGBs. They collect data from the SGBs using simple tools like Google Forms and use third party validation for some of the indicators. They provide impact training for the SGBs and are looking for impact tools with better technology to easily measure impact.1
Omnivore is an impact investor based in India that focuses on climate adaptation and resilience and invests in SGBs that are shaping the future of agriculture and food systems. The four pillars of Omnivore’s theory of change include boosting smallholder profitability, enhancing smallholder resilience, promoting agricultural sustainability, and catalyzing climate action. In an effort to maintain a simple framework for their portfolio, Omnivore developed their own simplified framework by drawing on other more complex frameworks as references, including the SDGs, IRIS+, Impact Management Project, and operating principles for impact management adopted by GIIN members. They collect data on climate impact from SGBs based on stage and region of operation and then aggregate the data into a single picture of the impact of Omnivore’s portfolio.
Reduction in chemical usage (kg) and food waste (metric tonnes)
Area under sustainable cultivation: reduced energy use, chemical use, water use (Ha)
Amount of GHG emissions avoided/ mitigated (MT
Third Derivative (D3) is a global ESO and catalytic investor that supports impactful climate mitigation innovations seeking to scale. D3 follows an internal, self-developed impact framework that addresses SGBs’ carbon emissions abatement potential, and which does not depend on making projections of the annual sales or market adoption rates, over the lifetime of the SGB. For SGBs, the above factors are highly unpredictable as they are dependent on changing consumer behaviour, government policies, norms, and industrial practices, making it difficult to arrive at justifiable projections.
To determine the best-fit SGBs for their investment or nonfinancial support, D3
calculates the SGBs’ eventual, potential climate impact by first defining the type of impact the innovation creates. D3 identifies three types of impact, classifying each SGB applicant into the best fit individual category. Then, it calculates potential emissions drawdown in a hypothetical scenario where the solution scales to the maximum it possibly can. D3 then sets thresholds for this potential drawdown impact and accepts only those companies that pass that threshold.
D3 also avoids choosing winners between different innovations, and it does not compare solutions creating different types of impact against each other, treating all on a level playing field. They only quantitatively assess a start-up’s impact against those set thresholds for each category of impact.
New Energy Nexus (NEX) is a network of accelerators and funds supporting clean energy entrepreneurship. They have supported 646 SGBs since 2016. The NEX Philippines, Indonesia, Vietnam, Uganda, California, and India chapters each designed their own impact tool using Microsoft Excel. NEX has found that its investors are more receptive to SGBs that are measuring their impacts and value ESO participation during the data collection process, as it increases the credibility of impact reports. NEX encourages ESOs to support their SGBs in impact measurement through curriculum and impact training. As a part of their extended support to SGBs by conducting impact training sessions, they require a lean and simple monitoring and evaluation (M&E) framework.
The global metrics that NEX tracks across its chapters include: 1) Number of start-ups supported, 2) Number of entrepreneurs supported, 3) Green jobs created, 4) Total amount given out in grants and investments by NEX, 5) Female entrepreneurs trained/supported, 6) Ecosystem building events organized, 7) Strategic partnerships, and 8) Tonnes of CO2 emissions mitigated.
The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) is a public-benefit federal enterprise supporting the German government that works with public and private sector clients in a wide variety of areas – including economic development and employment promotion, energy and the environment, and pea–e and security – to develop effective solutions that offer people better prospects and sustainably improve their living conditions.
GIZ’s project on Private Adaptation Finance aims to mobilize investment in private sector solutions for climate change adaptation & resilience (A&R) by supporting both the supply and demand side of capital for A&R investment in a holistic approach that includes ecosystem building and connects the global debate to the local context and stakeholders.
In early 2022, GIZ conducted a call to identify adaptation-relevant SMEs for one-on-one investment readiness support. The selection process also included an assessment of the A&R relevance of the applicants (for reference, see Application Form of PrivABoo Call for SMEs).
Based on the call and resulting map of adaptation-relevant companies, GIZ is building a methodology for an impact self-assessment for SMEs with A&R products, services, or technologies. The methodology builds on the ASAP taxonomy and GIZ & IISD’s Repository of Adaptation Indicators and strives to combine A&R eligibility screening for investments with practical guidance on selecting context- and location-specific key performance indicators per A&R business model and investment opportunity. The aim is to support SGBs and investors in the formulation of the business case for A&R in a language that is accessible to private sector actors whose perspective is focused on consumer needs and demands, risk management, market share, profit & loss, etc.