The Impact Management and Verification Standard, is a recent standard developed for assessing and verifying the impact KPI models & reports based upon these. This new audit standard emerged due to several reasons:
Need for Standardization: As impact investing grew, there was a lack of standardization in how impact was measured and reported. IMVS provides a unified framework to assess and verify outcomes, helping to standardize practices across different entities and sectors.
Preventing Greenwashing: With increased attention on eco/social reports, the risk of greenwashing (making misleading claims about environmental or social benefits) also grew. IMVS serves to authenticate impact claims, ensuring they are credible and not just marketing tactics.
Increasing Transparency and Accountability: By providing a clear and rigorous standard for impact verification, IMVS enhances transparency and accountability in impact reporting.
Facilitating Investment in Impact Assets: A clear and trusted standard like IMVS can encourage more entities to engage in impact asset trading, as validated impact models & reports build trust in the credits offered.
Building Investor Confidence: Consistent and reliable impact verification helps build investor confidence, which is crucial for attracting capital to projects and companies focused on social and environmental benefits.