Monthly Archives: November 2021

The Impact Management Platform has been launched!

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The Impact Management Platform (Platform) is a collaboration between Partner organizations, all of whom are leading providers of sustainability standards and guidance to coordinate efforts and mainstream the practice of impact management.

The Platform represents the next phase of the collaboration that, until now, was facilitated by the Impact Management Project (IMP), a timebound consensus-building forum that ran from 2016 to 2021. Through the Platform, initiatives will continue to work together to identify opportunities to consolidate existing sustainability resources, collectively address gaps, and coordinate with policymakers and regulators to support the mainstreaming of impact management. This web tool is the first product of the platform.

The Platform will be overseen by a Steering Committee comprised of the IFC, OECD, UNDP, UNEP FI and UNGC

source: About the Impact Management Platform

This is a great platform to not only learn but to design and implement impact management. It is designed for a very broad audience from novice to professionals, from startups to large organizations, for investors and for impact organizations. The website contains an overview of the actions of impact management and it is an amazing resource center for standards and guidance. It is an interactive and rich platform.

This year we have seen a convergence/merger of the leading sustainability disclosure standard setters (corporate reporting framewords). In June the two giants, The International Integrated Reporting Council (IIRC) merged with the Sustainability Accounting Standards Board (SASB) into what is today the Value Reporting Foundation to provide investors and corporates with a comprehensive corporate reporting framework across the full range of enterprise value drivers and standards to drive global sustainability performance. This was followed in Nov at the COP26 in Glasgow the IFRS Foundation announcing the formation of the International Sustainability Standards Board (ISSB) by consolidating the Climate Disclosure STandards Board (CDSB) and the Value Reporting Foundation (which houses the Integrated Reporting Framework and the SASB Standards) by June 2022.

The Platform encompasses all these actors above and all the industry leaders in impact and sustainability like GIIN, B-Lab, UN Global Compact, OECD, PRI, UN, GRI and more. It is a very needed and welcome move towards simplification and in creating a robust global standards for sustainability and impact management.

Flourishing Enterprises: Towards a new paradigm for positive impact value creation

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The undeniable effects of climate change, global pandemics, and growing income inequality have heightened corporate awareness of the need to incorporate sustainability into their business strategy. These social and global challenges offer also a unique opportunity to transform the role of business in society. A new paradigm and a global leadership reset are urgently needed.

In the backdrop of Net-zero targets, Reduce Emissions, Reduce Waste and Reduce Plastics (which are all extremely important) there is an exciting and bold body of work surfacing on beyond net-zero and going for positive impact value creation!

The B-Corp movement has been a leading example of this by rallying companies to use business as a force for good and to aim for being the best for the world rather than the best in the world. The new must-read book of Paul Polman “Net Positive: How Courageous Companies Thrive by Giving More Than They Take” offers a roadmap towards this new paradigm. More recently I learned about Positive-Impact Companies, Positive Institutions, or Flourishing Enterprises 1 which replaces shareholder primacy with greater purpose as the North Star for a company’s journey.

It is not long ago that we have been celebrating the movements of Do Less Harm and “Shareholder Primacy to Stakeholder Capitalism” but the notion of “Flourishing Enterprises” seems to guide us to aim for one step further by including in the business purpose the flourishing of people and planet and acknowledging the interconnected nature of business success with the long-term prosperity of the planet.

slide from Chris Laszlo’s presentation on “Flourishing Enterprise” at the 5th Global Forum for Business as an Agent for World Benefit, Oct 19-28th, 2021

So, what are these Flourishing Enterprises?

According to David Cooperrider, “It is something every leader wants…. Flourishing enterprise is about people inspired every day and bringing their whole selves into the enterprise, it’s about agility and innovation arising from everywhere; and it’s about realizing remarkable relationship value with stakeholders, including customers and societies, and ultimately with a flourishing earth.” 2

Chris Laszlo3 referred to “Unilever, Orsted, Natura, Ikea, Triodos Bank, Eileen Fisher, Gro Intelligence, TOMS, Greyston Bakery, Beyond Meat, Headspace, and Kingfisher as examples of emerging Flourishing companies. These are for-profit businesses that compete on the basis of creating a positive impact for society and the environment. Their model for business success is that by creating prosperity in the communities that they are part of and by contributing to a regenerative natural environment and improving human well-being, they can actually be more successful than their peers that don’t have this focus.” (Of this list, Natura, Triodos Bank, Eileen Fisher, TOMS, Greyston Bakery are also B Corps) According to Laszlo, Flourishing enterprises embed 5 key factors in their organizational strategy:

  1. Positive impact (not only reducing harm but improving social, environmental or health dimensions)
  2. The approach is embedded in their life cycle (so not a pilot nor a part of the company but end to end)
  3. Radical innovation (not incremental)
  4. Socially inclusive
  5. Efforts aiming at system change

The concept of “doing well by doing good” (that there are investments where you can have both financial and social returns, i.e., impact investments) inspired me to write a book on Microfinance and Microfinance Investments4 in 2004. This concept has developed and expanded over the years as more evidence mounted that it is possible to achieve both goals and now, we can witness businesses changing their purpose to include the prosperity of people and the planet not only because it is the right thing to do but because it is the way for the business to thrive!

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  • 1 This concept has been created, researched analyzed, documented, and presented by Chris Laszlo, David Cooperrider, Ron Fry, Ignacio Pavez, and Lori D. Kendall.
  • 2Presentation at the 5th Global Forum for Business as an Agent for World Benefit.  “The Great Leadership Reset” Day 1: David Cooperrider on “The Discovery and Design of Positive Institutions: Harnessing the Power of Mirror Flourishing”
  • 3Presentation at the 5th Global Forum for Business as an Agent for World Benefit, Day 5: Chris Laszlo on “Flourishing Enterprise”
  • 4Felder-Kuzu, Naoko: Making Sense: Microfinance and Microfinance Investments, Murmann Verlag, Hamburg, 2004