Case Study

How have you incorporated GIIRS into your investment process?

We use GIIRS in every stage of our investment process, from time of consideration to exit:

  • Due Diligence: As part of due diligence with recent prospects, we asked companies to complete the B Impact Assessment . The companies completed the self-assessment online and then we received a preliminary report showing each company’s unverified preliminary score  and relevant performance benchmarks.
  • Impact Improvement: Vital Capital works with companies at an early stage of operations to help shape their business model toward creating greater positive impact. We develop Corrective Action Plans (CAP) for all companies in our portfolio, and tie successful implementation of CAP milestones is to further deployment of capital. As each company grows, our team helps them continue to measure and manage their impact, particularly in the areas of the community and environment. We have used the B Impact Assessment to measure the positive impact created by our portfolio companies, quantify relevant metrics, and track performance over time against a baseline. The suite of tools B Analytics provides has grown with our companies, and improvements are coming online all the time.

Why did Vital Capital decide to participate in GIIRS?

The founding partners of Vital Capital designed the private equity fund to re-invest wealth in Africa and other frontier markets. When going to market, they found that investors required differentiation – a story for why they should place their bet on the fund. For us, a key driver was investing in the local population and to create a real transformative quality of life change. In order to communicate this to investors, we sought guidance on how to measure impact, and decided to use GIIRS as a tool to apply equal rigor to our social & environmental (S&E) impact and financial performance.

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Setting up the fund, we sought advice on how to measure impact and came across GIIRS. We wanted to apply equal rigor to measuring social and environmental impact alongside financial impact. B Analytics provided us with multiple solutions that met our impact measurement, analysis, and reporting needs throughout our entire investment process - from time of consideration to exit.

Eric Weinberg, Investor Relations Advisor, Vital Capital

Portfolio Spotlight

Vital Capital

Focal Energy, a company that invests in and manages a portfolio of income-generating renewable energy  projects in India, received a US $5m investment from Vital Capital in late 2012. During due diligence, Vital Capital asked Focal Energy to complete the B Impact Assessment and was able to utilize their assessment data in multiple ways:
 
Due Diligence: Question-level data and benchmarks were incorporated in the investment report prepared for the Investment Committee. Committee members used the data points to measure and understand Focal Energy’s impact and then compared them to benchmarks from other sustainable companies. 
 
Impact Improvement: Vital Capital used the free best practice guides that GIIRS provides in creating the Collective Action Plan (CAP) for Focal Energy. The guides helped the company implement new practices while learning from examples of other companies that employ these best practices.
 
Impact Reporting: Vital Capital also shared the data with Focal Energy’s other investors. Seeing the measurement and benchmarking capabilities of B Analytics helped these investors recognize the importance of collecting S&E data.

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