About 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 the DFIs launched the Joint Impact Model (JIM).
What is the Joint Impact Model?
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.
Who is it for?
The intended users of the JIM are financial institutions with operation in emerging economies.
What is next?
In May 2022 the JIM foundation has been set as to establish credible oversight of the development of the JIM. The JIM foundation aims to keep improving and developing the JIM, by working together with the development panel, industry leaders and others that want to further develop impact reporting in emerging economies.
Want to know more?
Check out more information about the Joint Impact Model: