About the Joint Impact Model Foundation
The non-profit platform to calculate financed emissions and social impacts.
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 the IFIs approaches on indirect impact modelling. As a result, in January 2021 the IFIs launched the Joint Impact Model (JIM).
With over 10 years of combined research, the JIM is now a widely used tool by development financial institution, multilateral development banks, asset managers and commercials banks to assess the impact of their portfolios.
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, report, set targets and assess the contribution towards global 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.
The JIM Foundation
In May 2022 the JIM foundation, a non-profit organisation, was set as to establish credible oversight of the development of the JIM and to make the JIM available to the wider industry.
There is a growing need for impact investors to contribute towards convergence around a globally accepted system for impact reporting. Harmonization will not only provide clarity on the impact the private sector is having on global development goals, but also help unlock finance and mobilize action to the places that need it most. It will assist the just transition toward a climate-neutral economy and help address the socio-economic impact of the transition.
Furthermore, emerging economies face enormous pressure to reduce emissions while developing their economies. Unfortunately – with very few exceptions - this is where data is more scarce.
The JIM foundation aims to fill this gap through the Joint Impact Model (JIM).
