Impact Management

BlueOrchard’s award-winning ESG & Impact management

ESG & Impact management refers to the process by which an impact investing organization monitors, quantifies and strives to measure and monitor its ESG risk factors while enhancing its impact. At BlueOrchard, this is a fundamental part of our day-to-day investment process and our impact goals are reflected in each investment decision.  To systematically assess the impact of each current and prospective investee and identify potential for improvement, BlueOrchard has developed its proprietary B.Impact framework.

 

B.Impact framework

 

The main pillars of the B.Impact framework include the enhancement of BlueOrchard’s historic proprietary SPIRIT tool into dedicated SPIRIT ESG and SPIRIT Impact scorecards. These scorecards have been developed to evaluate relevant and material ESG and Impact factors across all BlueOrchard’s asset classes and impact themes.

The SPIRIT ESG scorecard assesses the ESG risks in relation to the company considered and produces a rating that is used as a key input for the origination and monitoring of investments.

The SPIRIT Impact scorecard assesses the potential impact of each investment and follows the five dimensions of the Impact Management Project. It combines the investment intent with impact KPIs and information on the end beneficiaries. It also assesses BlueOrchard’s investment contribution while factoring potential unintended negative effects. The impact KPIs are mapped against the UN’s SDGs at both an individual company and overall fund level.
Both scorecards are complementary in helping BlueOrchard’s investment decisions.

Finally, the B.Impact investment universe is defined by the interaction between the SPIRIT Impact and the SPIRIT ESG scores. It includes areas that are not in scope (for example very high ESG risks or very low impact potential), areas where engagement by BlueOrchard is required in order to consider the investment and areas that are fully in compliance with the targeted investment universe.

 


BlueOrchard impact management reports

Our Impact Report provides in-depth insights into our impact management activities and field examples of our social and environmental impact.

Access the reports
  • Impact Report 2019-2020
  • Social Performance Report 2017-2018
  • Social Performance Report 2015-2016
  • Social Performance Report 2014
  • Social Performance Report 2013

Promotion of impact management

BlueOrchard actively promotes impact management and is a proud member, signatory or endorser of various industry key initiatives and networks.

In addition to BlueOrchard being a signatory of the IFC-led Operating Principles for Impact Management, the BlueOrchard Microfinance Fund has received independent verification for its alignment with the Principles. Read the full disclosure statement here.

Giin Principles for Responsible Investment Social Performance Task Force Smart Campaign IFC Sustainability Accounting Standards Board Principles for Impact Management