i3 Impact Score

One of the most difficult challenges with Impact Investing is to articulate the balance between desired financial and social/environmental return. The reason for this is that the balance is so intensely personal. If all one measures is one or the other, the task is straightforward. But, to balance competing priorities introduces a waterfall of complication. Which is more valuable? By how much? And is it always so? And if a fund pursues above-market returns, can it also be credible as an impact investment? Is it more important to invest with a firm that reflects social values (employee composition, purchasing policies, etc.) or with a firm that pursues social return with its investments? What is the probability of mission drift? And if the investment's mission drifts, how does that influence one's perspective on financial return? How is this quantified? Can it be quantified? The questions are legion, and can be paralyzing.

The intention of i3's Impact Scoring Algorithm is to frame these questions in a lucid, uncomplicated way and give investors the opportunity to clearly articulate their own priorities based on a wide set of variables. In so doing, we help investors express intensely personal priorities in a purely objective, quantitative manner. Portfolio decisions can then be made without the emotional complexity that impact investing can generate, and also without stripping the emotional rewards that impact investing can spark.



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About i3:

The great challenges we face –energy, food, medicine, the environment, etc. – will stretch the imagination and determination of entrepreneurs, government and society. We believe that the intersection of money and mission, of the invisible hand and the "invisible heart", will provide the answers we need. Impact Investing: redefining the meaning of capitalism.
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