As the impact investing industry has matured rapidly in recent years, the field is increasingly recognizing the need for commonly accepted approaches to defining, measuring and managing impact. Still, there is more work to be done to effectively manage for impact alongside financial risk and return.
In response, we at Pacific Community Ventures launched the Impact Due Diligence Initiative to identify emerging best practices in impact due diligence and offer practical tips and guidance to help investors more systematically examine impact prior to committing capital and ultimately make more impactful investments.
The first report from this research, Impact Due Diligence: Emerging Best Practices, was published in July of 2019 and we’re excited to publish the second report, The Impact Due Diligence Guide, later this Fall.
What’s contained in the Guide?
The forthcoming Impact Due Diligence Guide is comprised of two sections, each containing case studies demonstrating how investors have successfully developed and implemented processes to assess anticipated impacts during due diligence.
Developing Impact Due Diligence Approaches
This section contains practical guidance on developing impact due diligence approaches, including recommendations for both novices as well as seasoned experts in impact measurement and management. Investors should review this section to determine which approach is most appropriate for their organization and draw upon recommendations to develop resources and processes to evaluate expected impacts.
Implementing Impact Due Diligence Approaches
This section offers recommendations intended to help investors operationalize a systematic approach to impact due diligence within their organization. This includes guidance on integrating impact due diligence into existing processes, staffing, engaging with investees, informing investment decision-making, and enabling more rigorous post-investment evaluations.
Stay tuned for more from Pacific Community Ventures on the topic of impact due diligence. You can sign up here to receive the Impact Due Diligence Guide upon its release this Fall.