ABOUT THE JOINT IMPACT MODEL
Why the Joint Impact Model?
Measuring and reporting on impact in a consistent and comparable way is essential to evaluate progress towards global development needs and priorities, assess effectiveness of investments and drive impactful actions.
Prior to 2019, approaches to measure and report on the indirect impacts of investments has varied from one organisation to the next. Even though indirect impacts are fundamental to understanding the development effects of investments, measuring them is complex, and even more so for a full portfolio of investments. Several international finance institutions (IFIs) recognized this challenge and explored opportunities to align their approaches on indirect impact modelling. As a result, in January 2021, in collaboration with specialist consultancy Steward Redqueen, the IFIs launched the Joint Impact Model (JIM).
What is it?
Using input data such as revenue and power production from investment portfolios, the Joint Impact Model enables users to estimate financial flows through the economy and its resulting economic (value added), social (employment) and environmental (greenhouse gas emissions) impact. These impacts can be used to measure and report on the contribution of individual institutions to the Paris Agreement and the UN Sustainable Development Goals.
The JIM is characterised by its harmonised and transparent methodology and assumptions, public availability, collaborative nature, up-to-date macro-economic statistics, security features and user operated style.
What is next?
The JIM currently has 10 founding members and development partners along with nearly 40 other organisations who have expressed interest in using the JIM in the future. The Founding Members and Development Panel are setting priorities and pulling in industry experts to further improve and enhance the JIM. They are also working on setting up a foundation to establish credible oversight of the development of the JIM. More information on this to follow.
Click here to read more about the methodology