Event Recap

This discussion delved into a useful method to move measuring beyond traditional corporate performance accounting. It unpacks new techniques the International Foundation for Valuing Impacts (IFVI) uses to empower finance professionals to make smarter, more responsible investment decisions.

CAFIID’s Brian Carriere of the Colleges and Institutes Canada made the introduction to the discussion providing an appropriate summary of impact accounting and purpose of the discourse.

Andrea Serra (AS) kicked off the event by describing how these new impact accounting techniques came about, and specifically how they have become an important bridge between financial accounting and impact evaluation, and how capturing externalities in this manner provides transparency to stakeholders and improves financial analysis. She described the importance of using these methods to monetize impacts investments are generating. They are designed to simplify these accounting concepts, while providing a context for where capital goes and why it follows sound practice.

Jackie Bakalarski (JB) joined the conversation illuminating why impact accounting matters. She illustrated how this approach provides a global common language for finance pros, necessitating sound metrics that give decision makers the means to compare outcomes. Impact accounting allows organizations to capture value and overcome gaps in sustainability to close-the-loop for understanding how money allocated achieves impact goals.

AS then noted that valuing impact provides an important tool to cut through noise and focus on comparative corporate performance. Using cases, financial pros can learn to internalize key costs, giving a more accurate picture on the actual impact of decisions to act, or ignore, key opportunities. For example, internalizing the cost of water provides a measure. When organizations follow the Corporate Sustainability Reporting Directive, they internalize key areas of impact and offer options for decision-makers to reduce negative impacts, and record and report environmental and societal outcomes from business practices. 

She noted the Value Balancing Alliance (www.value-balancing.com) and Impact Valuation Hub (www.impactvaluationhub.org) as key public resources for all who are interested in adopting the practices. 

Then, Joanne Norris opened up the conversation to questions. The first dealt with how an organization’s Theory of Change is affected by impact accounting. The panelists were optimistic that the degree of changes could become massive as these processes become adopted widely. They speculated that if widespread adoption of Generally Accepted Impact Principles (GAIP), organizations would deliver certainty and credibility that would lead it to acceptance, plus demonstrable impact in business decision-making.

The follow-up question noted that standard setting was becoming a global priority for the big accounting firms, as well as, many large global companies. The final query from participants opined about a coming change in the US administration and how that might affect impact accounting practices. Panelists were confident that these practices were far enough along that progress would continue unabated. 

Brian Carriere concluded that discussion and invited participants to remain engaged in this movement to calculate and demonstrate impact in credible and sound ways. 

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Guest Speakers

Jackie Bakalarski is a Senior Associate on IFVI’s Market Development team, focused on working with data providers and investors to pilot and implement impact accounting. 

Based in Washington, DC, Jackie is a sustainable finance professional who has consulted on a range of topics including social bonds at the International Finance Corporation (IFC), flood reinsurance at FEMA, securitization at SBA, and natural capital financing at The Nature Conservancy. Jackie also has experience sourcing and supporting deals in SME development finance and impact investing.  

Jackie has also focused on developing solutions addressing corporate sustainability challenges such as AI-enabled supply chain traceability software, sustainability reporting, and human rights and due diligence (HRDD) programs in partnership with organizations such as Stronger Together and the Global Fund to End Modern Slavery (GFEMS). 

Jaclyn earned her MBA from Georgetown University, specializing in impact investing, ESG, and responsible business. Prior to her graduate studies, she worked in supply chain management for Fortune 500 companies. For undergrad, she attended The Ohio State University, completing a BS in Business Administration and a BA in International Development. Her career is dedicated to advancing sustainable investment practices and delivering value through responsible business strategies.

Andrea Serra is a sustainability and international development specialist with over 14 years of experience across the consulting and non-profit sectors. She is currently the Chief Market Development Officer at the International Foundation for Valuing Impacts (IFVI), where she spearheads partnerships and initiatives to advance the adoption of impact accounting, helping organizations integrate risk, return, and impact into decision-making.  

Before joining IFVI, Andrea was an Associate Director at BSR, where she guided companies in ESG strategy, materiality assessments, and benchmarking, and led the launch of several collaborative projects. Her career also includes roles at the World Economic Forum, where she coordinated public-private initiatives promoting safer, sustainable travel and tourism. She also spent over four years with an international development consultancy in Washington, DC, focusing on social and environmental impact management in the energy, transport, and extractive sectors across East Africa, Latin America, and the Asia-Pacific. 

Andrea began her career at Freedom House, managing U.S. government-funded projects in Latin America focused on human rights and democracy. She holds a dual Master of Public Administration in International Development from the London School of Economics and Sciences Po Paris, and a B.A. in International Relations from Syracuse University.

Moderator

Joanne Norris
Coming with more than 20 years of professional experience globally and across Canada, Joanne believes that capital should be used for good; placing capital in purpose-driven ventures and organizations is smart business. More investment vehicles, financial instruments and strategic funds are needed to support the sustainable growth of purpose driven organizations and impact businesses. To fully value and understand the impacts of investing with purpose, more fulsome, de-colonized evaluation methodologies and impact frameworks are needed to track and communicate the socio-economic and environmental outcomes/returns resulting from impact driven ventures and capital. 

Joanne has held several leadership roles in the social finance/impact investing sector and consults with impact venture founders, foundations, funds and other impact driven organizations. Hiring, coaching and managing teams are core elements of her professional experience as well as resource mobilisation and talent planning. On the other end of the operational cycle, impact measurement and management, outcome evaluation and SROI (social return on investment) analysis & reporting are key accountabilities under Joanne’s leadership. 

Joanne has led and worked with diverse sets of entrepreneurs and management teams globally on projects and initiatives in the impact investing field, on behalf of governments, multilateral agencies, private impact fund, credit unions and a strategic loan program for young entrepreneurs across Canada. 

Joanne is current President of Deer Crossing the Art Farm, a non profit, community-based arts organization, Board Director at Social Venture Partners Vancouver and past founding Board Director at Demonstrating Value Resource Society and Social Value Canada.

Invitation

Looking for a tool to drive decision- making based on risk, return and impact?

Hosted by CAFIID's Impact Measurement and Management Community of Practice, join this CAFIID webinar to learn about International Foundation for Valuing Impacts (IFVI) impact accounting methodology.

Impact accounting is poised to revolutionize how we evaluate corporate performance beyond traditional financial metrics, empowering more informed and responsible management and investment decisions. This innovative approach raises the standards of corporate sustainability reporting, providing managers and investors with a more holistic assessment of corporate value and a company’s impact on society and the environment.

Join the event to hear more about:

• Who is IFVI and what is impact accounting?

• Who is this useful for and what are the main use cases? How is it valuable for impact investors? 

• What’s next ? Opportunities for engagement and next steps for IFVI

This event is presented by CAFIID’s Impact Measurement and Management Community of Practice

Interested in joining? Reach out!