Impact management practices are less robust at later stages of the investment cycle, with just 20% of impact investors following up on impact underperformance with investees, finds new research.
A study by impact verification business BlueMark, which analyses how the IFC’s Operating Principles for Impact Management are being used by the market, found that when impact investors do follow up on underperformance they tend to do so through engagement with the underlying company or companies.
Last year, insurance giant Zurich said it would “invest what is needed” to meet a shortfall in the environmental and social targets of its impact investment portfolio - but the practice remains extremely rare.
It found just 17% of have a process to assess the sustainability of impact at exit, and only 11% solicited input from stakeholders to assess impact performance.
It also found that 93% aligned with the Sustainable Development Goals, 97% had a consis…