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GBF’s measurement process captures historical and projected impact metrics, and then cross-checks impact through supplier-level surveys for select clients.
Historical Impact – GBF collects basic metrics to capture the income and savings that investee companies generate for low income suppliers, workers, and consumers. Investee companies submit quarterly reports that cover these social metrics as well other key operational data.
Projected Impact – We analyze our clients’ reported metrics together with our financial forecasts (used in GBF’s supervision process), to estimate an Economic Rate of Return (ERR) for each investee. The ERR projects the economic value created for various stakeholder groups (including investors, workers, and low-income suppliers and consumers) during 10 years of operations, expressed as an annualized economic return, relative to capital employed to produce that impact. From these projections, we can also observe the total value generated by the company and what portion of those benefits accrue to low-income stakeholders (suppliers and workers). Based on existing operations, GBF’s clients achieve significant social impact with potential for greater impact going forward.
We revisit these projections on a semi-annual basis, incorporating new information about client performance or refining driving assumptions through survey work we may have completed with the client.
Confirming Impact – When possible, we cross-check client-reported data against the financial information we receive, supplemented by what we observe through our work with clients. GBF is also conduction supplier-level surveys with select clients. Through these surveys, we gather demographic information about the suppliers and workers of our clients and establish a base line data set and process to track progress over time.