Project Overview
- Client/Partner: Startup Guide – Impact Index
- Date: May 2023 – August 2023
- Location: Global
- Industry: Impact Investing, ESG, Sustainable Finance
- Service: Sustainability
Challenge
Impact Index required a way to accurately assess the social and environmental impact of startups, while balancing qualitative and quantitative data. The challenge was to create a comprehensive and adaptable framework that would enable investors to easily identify and align with impactful startups while also integrating transparency, risk, and contributions to the UN Sustainable Development Goals (SDGs).
Methodology
- Approach: Phibon designed a tailored impact evaluation framework by integrating both qualitative and quantitative metrics. The framework was developed with a focus on sustainability, governance, and risk assessment, aligned with ESG factors and the SDGs.
- Tools Used:
- Custom evaluation frameworks for impact assessment
- ESG and risk analysis tools
- Data collection and analytics tools for qualitative and quantitative inputs
- Collaboration: Phibon worked closely with the Impact Index team and external experts in sustainability and finance to ensure that the framework met global standards and was practical for investors.
Solution
Phibon created a multi-layered evaluation framework that allowed for the thorough assessment of a startup’s impact profile. Key elements of the solution included:
- Comprehensive Assessment Criteria: Factoring in transparency, risk, environmental, social, and governance (ESG) activities, as well as alignment with the UN’s Sustainable Development Goals.
- Startup Archetypes: Startups were classified into six archetypes, simplifying the process for investors to understand the company’s impact profile. This allows investors to align their portfolios based on values and goals.
- Qualitative and Quantitative Data Integration: The framework gathered both types of data, allowing for a holistic view of each startup’s current and potential impact performance.
Results
- Quantitative Impact: The framework allowed investors to quickly and easily classify and evaluate startups, improving decision-making and alignment with ESG values. More than 7.000 startups were assessed within the first three months of implementation.