BOSTON, 27 June 2023 – The International Foundation for Valuing Impacts (IFVI) has received generous grants of $250,000 from the Ford Foundation and $200,000 from the John D. and Catherine T. MacArthur Foundation to integrate monetary impact accounting into financial analysis. This funding will further IFVI’s efforts to create and pilot test a universal globally applicable methodology for corporates and investors to monetize their environmental and social impacts.
In December 2021, the G7 Impact Taskforce called for “mandatory accounting for impact,” a new innovative accounting system that translates corporate and investor environmental and social impacts into the language of currency and integrates them into financial accounts. With the support of these grants, IFVI aims to meet this call by developing methodologies and valuation estimates — built upon and complementary to the work of the ISSB and other regulatory bodies — to enable the creation of monetary impact accounts, as well as to generate evidence of their usefulness among corporates, investors, and policymakers.
“This investment from the Ford and MacArthur Foundations is an important signal of support, validating the urgency and importance of an accounting system that takes into account impacts on society and the environment in a comparable and understandable way,” said Rob Zochowski, President and CEO of IFVI. “IFVI has both an ambitious goal and timeline. The realization of a truly sustainable economy catalyzed by impact accounting is our north star. We’re excited to have the support of Ford and MacArthur to continue this work to ensure our methodology is harmonized with existing standards and relevant and applicable across regions and industries.”
An initiative of the GSG, IFVI grew out of the Impact-Weighted Accounts Project at Harvard Business School and was established as an independent organization in June 2022 to further the advancement of monetary impact accounting. Since then, IFVI and the Value Balancing Alliance have established a close partnership to develop one common impact accounting methodology for the public good as well as to advocate for adoption globally. Both organizations have completed numerous test pilots with companies, including Acciona, BASF, Blackrock, BMW, Calvert Investments, Deutsche Bank, Eisai, Novartis, SK, Summa Equity, among others.
To learn more about IFVI, visit ifvi.org.
International Foundation for Valuing Impacts (IFVI)