The report highlighted strengths within the fund including: 1. A well-articulated Theory of Change with several impact themes. 2. A deep expertise in impact measurement and management, with regular opportunities offered to staff. There is clear institutional buy-in on impact and ESG. 3. Impact management and measurement stipulations are embedded in investment terms. 4. A responsible exit framework that includes considerations of the sustainability of impact beyond exit. 5. Impact performance for each investment is reported on in standardized Progress Reports, which include an overview of each investment in accordance with the IMP’s Five Dimensions, specifying key stakeholders, targeted outcomes, and impact risks. Although the data from the assessments captured emerging areas of positive impact, the assessments also provided the Hataraku Fund an opportunity to identify areas for improvement in the verification process. Recommendations for improvement include: 1. Consider setting fund-level impact targets, or formalizing impact related commitments at the fund level (i.e., percent of portfolio aligned with 2X, average impact score of portfolio). 2. Within policy documentation, codify ESG and impact responsibilities for all team members. 3. Consider engaging with end stakeholders to inform ex-ante impact assessments. 4. For future impact reports, include narrative context on impact performance, lessons learned, and strategy or IMM process refinements made during the reporting period. In terms of impact metrics, all but one of the fund’s investments use customized KPIs rather than industry standards. The intended goals for each investee and the number of metric KPIs tracked are shown in Figure G.
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Ten Years in the Making
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