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SOCIAL INVESTORS WG - SFDR SESSION��Impact indicators as proxy-measurements of PAIs �13 June 2023

impactinstitute.com

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AGENDA

Impact measurement across balance sheets

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Impact Institute PAIs Proxies recent updates

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Impact indicators as a proxy-measurements of PAIs

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PAIs proxies use across the investment lifecycle

Questions

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INTRO | IMPACT MEASUREMENT ACROSS BALANCE SHEETS

Investments

Mapping

Impact intensities

Across all asset classes;

All geographies;

All sectors.

Assets

€ 10,000,000

€ 15,000,000

€ 3,000,000

€ 850,000

€ 35,000,000

€ 7,000,000

€ 350,000,000

€ 12,000,000

€ 73,000,000

€ 13,000,000

Human

Social

Natural

Listed / non listed

Economic sectors

Countries

Value Chains

Monetized intensities

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SFDR PAIS | IMPACT INDICATORS AS PROXY-MEASUREMENT

Impact intensities

Human

Social

Natural

Contribution to climate change

Air pollution

Water pollution

Use of scarce water

Fossil fuel depletion

Use of scarce materials

Land use

Gender wage gap

Underpayment

Forced labour

Child labour

Well-being effects of employ.

Creation of human capital

Value of time

Workplace H&S incidents

Investment data

Value of investment; Investee’s EV;

Investee’s revenue; Investee’s country/sector

Alignment with PAIs

M1

M2

M3

M8

M12

E2

E18

S2

M7

M10

S18 – S24

Proxy-measurement of PAIs

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SFDR PAIS | IMPACT INDICATORS AS PROXY-MEASUREMENT

Testimony

“For this first PAI quantitative disclosure, Incofin IM has decided to report GHG emissions at the level of our investees.

The process with Impact Institute was quite easy: all we had to do was to provide a list of country-sector combinations corresponding to our portfolio (relevant sectors were: i) Financial Services, and ii) Agriculture, further split by type of culture).

Impact Institute provided the GHG data for scopes 1, 2 and 3 for each of the combinations, and shared with us a calculation template which was simple to use and allowed us to estimate the GHG emissions for each of our investees and funds.

We are satisfied with the services offered by Impact Institute.”

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SFDR PAIS | IMPACT INSTITUTE RECENT DEVELOPMENTS

2022

Q1 ‘23

Q2 ‘23 2023

Q3-4 ‘23 2023

Data units

PAI proxy data units have been updated to make calculations easier and results more aligned with SFDR requirements.

Calculation tool

A PAI calculation tool has been developed to help clients using GID PAI proxies. By filling the tool with investment data, GID users get portfolio and constituent level PAIs that can be reported directly.

Data pricing

Pricing structure has been updated and simplified.

It is now only based on the number of PAIs required as well as on the end user’s size.

Air pollution updates

Air pollution data available for specific pollutants (PAI E2), providing a better alignment with SFDR.

Sector granularity

Integration of more granular sector classifications to include additional sectors, leading to a better coverage of investees’ portfolios.

Additional PAIs

Based on data availability, on demand, on new risk scores for qualitative PAIs… (e.g., M7, M10, S18-24)

SFTP delivery

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SFDR PAIS | USE CASES BEYOND REGULATORY REPORTING

Strategy & Policies

Universe definition, investment pre-screening and selection

Engagement

Portfolio construction, risk mngt., perf. measurement

Reporting

(incl. regulatory)

Investment lifecycle

Multiple opportunities exist for Asset Owners and Asset Managers to integrate impact across the investment lifecycle

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QUESTIONS

Adrien GRUSON

Senior Associate – Investment Management

adrien@impactinstitute.com

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APPENDIX

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IMPACT INSTITUTE | INTRODUCTION

Our purpose

Company overview

Amsterdam-based social enterprise

80+ employees: data, software, consulting, training…

10+ years of existence and active R&D

Diverse ecosystem, cross-industry foundations and working groups

Empowering organizations to realize the Impact Economy

Practical approach to Impact Measurement and Valuation

Two expertise levels: proprietary data tools and bespoke advisory services

Focus on professional capital providers to the world economy

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Impact is the difference one makes in the world by having an effect on the things valued in society

Beyond financial capital

Financial capital

Non-financial capitals

Manufactured

Intellectual

Human

Social

Natural

Impact is the difference one makes in the world by having an effect on the things valued in society

The difference one makes

Having an effect

Things valued in society

Absolute vs. marginal impacts

From Output to Effect

Positive and negative impacts

Welfare effects of employment

Consumer surplus of products and services

Value of life

Health and safety incidents

Contribution to climate change

Underpayment in the value chain

Invest in 20 000 new keyboards per year

Increase of productivity for a service company

Installing 200 sqm of solar panels

Reduce contribution to climate change, towards a 1.5 degrees goal

WHAT IS IMPACT? | THE THEORY

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Address: Haarlemmerplein 2, 1013 HS, Amsterdam�Site: www.impactinstitute.com

Facebook: /impactinstitutecom�Twitter: impact_inst�

Tel.: +31 202 403 440

Mail: info@impactinstitute.com

CONFIDENTIALITY REQUEST AND DISCLAIMER

Information, data, and drawings embodied in this document are confidential and are supplied with the kind request that they will be held confidentially and not disclosed to third parties without the prior written consent of Impact Institute.

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