6 October 2022, AlphaMundi Group Ltd disclosed its new Framework for Impact Measurement and Management (‘FIMM’), which harmonises the use of different methodologies tested over a decade of practice into a holistic solution across the entire investment value chain. The FIMM will also increase impact transparency for the Group’s stakeholders, ranging from private sector investors to public sector development agencies and the small and medium enterprises in the Group’s portfolio.
The FIMM draws on multiple industry standards including the voluntary disclosures of the IFC Principles and the mandatory requirements of the European Union’s Sustainable Finance Disclosure Regulation (‘SFDR’). It is also aligned on the Sustainable Development Goals.
The FIMM is a pragmatic response to civil society’s growing demands for the financial industry to measure and disclose its economic, social and environmental impact more accurately, and to use this information to shift asset allocation to net-positive impact strategies by 2030.
“AlphaMundi Group has followed its own learning journey on impact measurement and management”, says Tim Radjy, Founder and Managing Partner of the AlphaMundi Group. “Impact is in our DNA, and we have always endeavoured to contribute to the emergence of industry standards, ultimately to help mainstream investors understand and commit to them. We wish to see more alignment among impact investors, to ease the reporting burden of our portfolio companies and help us be more catalytic as an industry, as our time to achieve the Sustainable Development Goals is running out. Standards harmonisation will also help mainstream impact investing; so far, less than 1% of the world’s financial assets seem to be invested with a measurable impact – how can we make the right decisions without the right information?”
Highlights of the FIMM include:
• 8 impact objectives, each monitored by dedicated indicators;
• Quantitative data analytics and qualitative case studies;
• Full integration of impact considerations throughout the investment process, from strategic allocation to opportunity assessments, risk mitigation, portfolio management and divestments.
