Newly created organization, spun off from the Impact-Weighted Accounts project in Harvard Business School
BOSTON, July 12, 2022 /PRNewswire/ — The new International Foundation for Impact Valuation (IFVI), a spin-off from the Impact-Weighted Accounts (IWA) project in Harvard Business Schoolheld its inaugural board meeting last weekend to launch the organization.
The goal of the International Impact Valuation Foundation is to foster the global integration of impacts into financial analysis to promote efficient resource allocation and achieve long-term financial stability. To do this, the IFVI will develop evaluation methodologies and estimates, conduct the necessary research to support impact evaluation, raise awareness of the feasibility and importance of full impact disclosure, and increase market uptake of impact assessment among businesses, investors and policy makers.
The IFVI will build on the IWA impact frameworks, methodologies and datasets published to date. Since its inception in 2019, IWA has demonstrated that impact-weighted accounts are achievable, useful, and scalable. He has published 22 articles, conducted more than 2 dozen pilot projects, and published four open source datasets including thousands of companies. He has also drafted key principles underpinning the display of impact-weighted accounts in collaboration with the Impact Economy Foundation, building on internationally accepted frameworks, the Natural Capital Protocol (2016) and the Social and Human Capital Protocol (2018). IFVI was launched as an independent organization to implement the recommendation of the G7 Impact Task Force and its December 2021 report, Delivery time, who notes:
“Investment decisions are made today with incomplete information. We should be working towards a world in which those decisions are fully informed by risk, return and impact. For this reason, the ITF strongly calls urgent need for mandatory impact accounting as a destination, emphasizing that the path to this goal must be underpinned by greater transparency, harmonized global standards and robust mechanisms to ensure the integrity of data and analysis. The ITF recommends that G7 countries and partners work with the private sector, standard setters and academia on impact assessment approaches.This work is needed to deepen our understanding of how to assess impact. impact in a way that enables a meaningful comparison of business impacts and benefits, while revealing the relationship between the two.
The IFVI aims to establish a close partnership agreement with the Value Balancing Alliance to provide an effective scale to achieve the goals set by the G7 Task Force. IFVI and the Value Balancing Alliance will continue to work closely together within the valuation ecosystem, through the Value Accounting Network and the Capitals Coalition Value Commission. IFVI will accelerate progress through partnerships that drive speed and scale, and will build on and amplify existing strong research.
Work on education, case studies and management training will continue in Harvard Business School under the leadership of IWA Project faculty co-chairs George Serafeim and Ethan Rouen.
The initial IFVI Board of Directors is made up of five directors; additional representatives will be appointed once the entity’s constitution is complete. The directors are:
Sir Ronald Cohen (interim chairman of the board)
Co-Founder and President, Impact-Weighted Accounts; Global Steering Group for Impact Investing (GSG); G8 Working Group on Social Impact Investing; Apax Partners Worldwide LLP, Bridges Fund Management, Big Society Capital. Co-founder of UK and European venture capital associations, social finance
Chairman of the Steering Committee of the Alliance for Balancing Value; Member, Board of Directors of BASF SE
President, International Council on Integrated Information; Member of the Board of Directors of the Value Reporting Foundation (VRF), Member of the G7 Impact Working Group; Senior Advisor, McKinsey and Blackrock
Charles M. Williams Professor of Business Administration, Harvard Business School; Co-Chair, Impact-Weighted Accounts, Harvard Business School
former Chairman, FASB; former founding member, board of directors of the IASB; current board member of Fannie Mae, Morgan Stanley, and Workiva, served for many years on the boards of SASB (and its successor, the Value Reporting Foundation) and as an executive-in-residence at Colombia Business School
The Board of Directors has appointed the following individuals as officers of IFVI:
T Robert Zochowski III
President and CEO
Treasurer and Corporate Secretary
Sir Ronald CohenActing Chairman of the Board, said, “This is a huge step forward in creating more inclusive and sustainable economies based on transparency of impacts. The IFVI will lead the global establishment of a standardized monetary valuation of business and investor-created impacts to complement existing efforts to standardize physical measurements. . We are entering the era of impact and profit, where both determine the allocation of resources and the valuation of companies.”
Media Contacts – Please contact T. Robert Zochowski III to impactweightedac[email protected] with questions. The existing IWA team and their email addresses will remain at Harvard Business School until December 2022 while IFVI’s operations are fully established.
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