Impact Report 2023 | Schroder BSC Social Impact Trust plc
Schroder BSC Social Impact Trust plc | Impact Report 2023
Impact assessment and reporting pre and post investment Pre-investment
Impact Risk assessment
SBSI’s Impact framework ensures that investments align with our social impact mission and that impact risks are assessed and managed. We believe this rigorous approach to impact risk is key to the Company’s success. SBSI focuses on the nine types of impact risk codified by the Impact Management Project.
Post investment
Assessed pre-investment through review of fund managers’ impact theses and processes, BSC assessment of market and prospects for SBSI contribution. Assessments supplemented through BSC market research and referencing against existing sectoral standards and practices. Key tools: BSC Impact Canvas documenting fund impact thesis, KPIs and measurement plan. ESG framework: Including ESG materiality assessment, Equality, Diversity and Inclusion questionnaire, risk assessment, and relevant material adverse indicators for ongoing monitoring at fund and frontline levels.
Enterprises and investors face nine types of impact risks
Quarterly and annual engagement and reporting cycle to review progress on thesis, and risks. Key tools:
KPIs and action plans guide post investment impact management.
Impact Risk
Definition
The probability that insufficient high-quality data exists to know what impact is coming.
Evidence risk
Performance committee. Quarterly fund reports.
The probability that external factors disrupt our ability to deliver the impact.
External risk
Annual reports on Impact KPIs. Annual impact conversations to review fund learning, progress and additional opportunities for partnership to enhance impact.
Insights and learnings fed back in to SBSI strategy and pipeline.
Stakeholder participation risk
The probability that the expectations and/or experience of stakeholders are misunderstood or not taken into account.
The probability that positive impact does not endure and/or that negative impact is no longer mitigated.
Drop-off risk
The probability that the impact could have been achieved with fewer resources at a lower cost.
Efficiency risk
The probability that the activities are not delivered as planned and do not result in the desired outcomes.
Execution risk
Alignment risk
The probability that impact is not locked into the enterprise model.
The probability that the required activities are not delivered for a long enough period.
Endurance risk
Unexpected impact risk
The probability that significant unexpected positive and/or negative impact is experienced by people and the planet.
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