Using IRIS+ for Decision-Making

IRIS+ Core Metrics Sets create a framework for tracking and analyzing social and environmental effects, enabling investors to make informed decisions that balance financial and impact goals. IRIS+ is designed to address the growing demand for impact investing, particularly in achieving the United Nations' Sustainable Development Goals (SDGs). The initiative aims to bridge the $2.5 trillion-dollar gap in achieving the SDGs by providing a standardized approach to impact management. IRIS+ is managed as a public good by the GIIN, which builds critical market infrastructure and supports activities, education, and research to accelerate the development of a coherent impact investing industry. The adoption of IRIS+ enables investors to translate their impact intentions into real impact results. Key questions that drive investment decisions can be answered through the IRIS+ Core Metrics Sets, which are aligned with the five dimensions of impact outlined by the Impact Management Project. These dimensions include the goal, who is affected, how much change is happening, what is the contribution, and what is the impact risk. IRIS+ Core Metrics Sets help investors to clearly articulate the goal and specific outcomes being sought, as well as understand the significance of the outcome to affected stakeholders. The metrics sets also enable investors to assess the extent to which they are reaching the intended stakeholder group, understand the performance and expectations in terms of scale and depth, and evaluate the contribution of enterprises to social and environmental outcomes. A case example from Capria Ventures and Unitus Ventures illustrates the practical use of IRIS+ Core Metrics Sets in decision-making. Capria Ventures is advancing the next generation of local fund managers that invest in small and growing businesses in emerging and frontier markets. Unitus Ventures is a leading seed stage impact venture fund investing in startups innovating for the masses. The example features an actual portfolio company that fits within the IRIS+ "Quality Healthcare" Impact Theme, demonstrating the application of IRIS+ Core Metrics Sets in tracking and analyzing social and environmental effects. The use of IRIS+ Core Metrics Sets enables investors to have clarity about performance and expectations in terms of scale and depth, and to understand the main risk factors identified as material for the specific Strategic Goal in question. By posing critical and precise questions throughout the identification of metrics and the data review, IRIS+ keeps a sharp focus on the rationale for impact choices, strengthening the integrity of investment decisions that can lead to both social and environmental benefits as well as financial performance.