The development of the impact accounting methodology (the Methodology) is a multi-year engagement led by IFVI in partnership with the Value Balancing Alliance.

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The Methodology builds on frameworks and protocols published by leading organizations in the impact management ecosystem and sustainability-related disclosures required by governing jurisdictions and international standard setters, including Capitals Coalition, EFRAG, Global Reporting Initiative (GRI), IFRS Foundation, Impact Economy Foundation, Impact Management Platform, Social Value International (SVI), and the Transparent Project. The Methodology is designed to harmonize and build upon concepts, definitions, frameworks, methods, and principles.

Governance and due process

The development of the Methodology is governed by the Valuation Technical & Practitioner Committee (VTPC), an independent committee established by IFVI to direct, validate, and approve research and methodology produced by the cooperation of IFVI and VBA.

The IFVI Board of Directors provides oversight to the Due Process Protocol through its Due Process Oversight Committee (DPOC). More information about the VTPC is available in the VTPC Terms of Reference.

In the development of the Methodology, IFVI and VBA will follow the rigorous and credible process outlined in the Due Process Protocol balanced with the urgent and dynamic needs of stakeholders in the face of great social and environmental challenges. As detailed in the Due Process Protocol, formal methodology statements undergo public exposure prior to final approval by the VTPC.

Questions or comments about IFVI governance or methodology can be submitted to the VTPC at VTPCLeadership@ifvi.org, the Chair of the DPOC at DueProcessOversight@ifvi.org, or directly to technical staff at research@ifvi.org.

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Architecture

The Methodology is being developed through a system of interrelated statements:

A more complete methodology architecture, featuring planned topics and industries for the future, is in development and may be subject to change.

Workplan

The impact accounting methodology is developed and released on a rolling basis until a complete set of social and environmental impact topics and relevant industry methodologies have been issued. The workplan to develop new topics is released annually and updated as necessary. 

As part of our development of an impact accounting methodology we’ve released the exposure draft for General Methodology 1: Conceptual Framework for Impact Accounting. The public comment period has closed.

General Methodology 1: Conceptual Framework for Impact Accounting