5 July 2022
UNEP FI is pleased to launch Version 3 of the Portfolio Impact Analysis Tool for Banks along with an updated Impact Radar, building on over three years of experimentation and usage by a growing community of practice.
The new Portfolio Impact Analysis Tool for Banks is still in keeping with UNEP FI’s unique Holistic Impact Methodology, and supports banks in the implementation of their impact analysis requirements under the Principles for Responsible Banking.
As of 2022, UNEP FI’s Impact Analysis Tools are gradually transitioning to a ‘modular’ format, where the main components of impact analysis are contained within distinct modules. The new modular format allows more flexibility to accommodate for a variety of types of user banks.
The Tool is an iterative input-output workflow based on UNEP FI’s unique Holistic Impact Methodology. It requires users to input data to describe their portfolio and to reflect their current impact performance. The Tool uses the input data in combination with a set of in-built impact mappings to produce a number of outputs, in particular a set of impact profiles by business line, and to guide the user in identifying the bank’s most significant impact areas and determining priorities, thus setting the basis for strategy development and target-setting.
It is designed to enable banks to comply with the requirements under Principle 2 on Impact Analysis and Target-setting of the Principles for Responsible Banking.
Find out more about the Tool here
UNEP FI Impact Radar
Building on over three years of experimentation and usage by a growing community of practice both within and beyond UNEP FI’s membership the Impact Radar has been revised for even better impact analysis and management.
The Impact Radar offers a holistic set of impact areas and topics across the three pillars of sustainable development (economic, environmental and social), which can be used by private finance and business to understand and manage positive and negative impacts across the three pillars. The impact areas and topics are defined based on internationally recognized standards and definitions, including the SDGs.
New features of the revised Radar include a streamlined set of impact areas, introduction of impact topics within the impact areas for enhanced granularity and explicit reference to human rights issues such as modern slavery and child labour.
The Radar is the basis of various mappings and as such has also become the cornerstone of UNEP FI’s Holistic Impact Tools and related guidance surrounding impact management.
Find out more about the updated Impact Radar here.