THEMATIC AREA
OWNERSHIP AND LEADERSHIP
TA-01
Number of Women in Senior Management
DEFINITION:
Number of full-time equivalent (FTE) female employees in senior management roles working for the client company or project at the end of the reporting period. Senior management is generally a team of individuals at the highest level of organizational management (usually executive level positions) who have the day-to-day responsibilities of managing a company or corporation. They are often referred to as the “C-suite” and include positions such as Chief Executive Officer – CEO; Chief Financial Officer – CFO; Chief Marketing Officer – CMO; Chief Operations Officer – COO; Chief Information Officer – CIO; Chief Legal Counsel – CLC, etc. Within different corporations, they can also sometimes be referred to as executive management, top management, or upper management.
GUIDANCE:
This metric is intended to capture female representation in Senior Management. Practitioners will need to collect "Total Number of Senior Managers" to get a percentage. Female Senior Managers may also hold ownership stakes or Board or Investment Committee positions in the organization. As such, Practitioners should avoid double-counting women who fill multiple roles within an organization by not aggregating HIPSO's "Number of Women in Senior Management" with "Number of Women on the Board", "Number of Investment Committee members who are female", or "Female Direct Jobs Supported (Operations and Maintenance)". Practitioners may also refer to sector-specific gender leadership benchmarks and application guidance as needed, such as those specified by the 2X Challenge (www.2xchallenge.org).
Applicability: All client companies, where relevant. Practitioners may use the metric for investment fund investees, where relevant, but typically not used for clients of other intermediated finance (e.g. commercial banks).
Unit: #
TA-02
Number of Women on the Board
DEFINITION:
Number of women on the 'Board of Directors' of the client company at the end of the reporting period. A board of directors is the governing body of a corporation, composed of a group of individuals that is legally/fiduciarily responsible for overseeing the organization’s management and operations and guiding its strategy. The board is accountable to the shareholders and other relevant stakeholders. A governing body with a different name (e.g., "advisory body") may be considered a Board of Directors provided it has a fiduciary responsibility to shareholders and/or other relevant stakeholders.
GUIDANCE:
This metric is intended to capture female representation within the board of directors, supervisory board, or governing body of an organization. Practitioners will need to collect "Total Number of Board Members" to get a percentage. Female Board Members may also hold ownership stakes, Senior Management positions, or Investment Committee positions in the organization . For Financial Intermediaries, the metric refers to the Female Board Members of the Financial Intermediary. For Equity Funds, the metric refers to the Female Board Members of the General Partner. For Investment Fund Investees, also refer to the HIPSO metric "Number of Female Founded Enterprises". Practitioners should avoid double-counting women who fill multiple roles within an organization by not aggregating HIPSO's "Number of Women on the Board" with "Number of Women in Senior Management", "Number of Investment Committee members who are female", or "Female Direct Jobs Supported (Operations and Maintenance)". Practitioners may also refer to specific gender leadership benchmarks and application guidance as needed, such as those specified by the 2X Challenge (www.2xchallenge.org)
Applicability: All client companies, where relevant. Practitioners may use this metric for investment fund investees, where applicable, but typically not used for clients of other intermediated finance (e.g. commercial banks).
Unit: #
TA-03
Number of Investment Committee Members who are Female
DEFINITION:
Number of female Investment Committee members who are counted as voting members of the investment committee of a Debt or Equity investment Fund or other Financial Intermediary as of the end of the reporting period.
GUIDANCE:
This metric is intended to capture the size of the female representation on the investment committee of a financial intermediary or a general partner of a debt or equity fund. Practitioners will need to collect "Total Number of Investment Committee members" to get a percentage. Practitioners should avoid double-counting women who fill multiple roles within an organization by not aggregating HIPSO's "Number of Investment Committee members who are Female" with "Number of Women on the Board", "Number of Women in Senior Management", or "Female Direct Employment Supported (Operations and Maintenance)". Practitioners may also refer to specific gender leadership benchmarks and application guidance as needed, such as those specified by the 2X Challenge (www.2xchallenge.org)
Applicability: Financial Intermediary client or a General Partner of a Debt or Equity Fund client
Unit: #
TA-04
Number of Female Founded Enterprises
DEFINITION:
Number of enterprises in which there is an active female founder(s). Female founder(s) must retain an active role in the organization as of the end of the reporting period. An active role may include acting in an advisory capacity for key decisions and does not necessarily require a full-time role at the organization.
GUIDANCE:
Practitioners may refer to specific gender benchmarks and application guidance as needed, such as those specified by the 2X Challenge (www.2xchallenge.org)
Applicability: Direct Equity client, General Partner of a Debt or Equity Fund client, and investment fund investees. For investment fund investees, refer to guidance for “Number of Active Fund Investments in Female Founded Enterprises” and “Number of Realized Fund Investments in Female Founded Enterprises”.
Unit: #
EMPLOYMENT
TA-05
Female Direct Jobs Supported (Operations and Maintenance)
DEFINITION:
Number of full-time equivalent female workers, as per local definition, working for the client company or investment project at the end of the reporting period unless there is seasonal variation (see guidance for “Direct Jobs Supported (Operations and Maintenance)”).
This includes female individuals hired directly and female individuals hired through third party agencies, as long as those female individuals provide services related to the operations and maintenance of the client company or investment project. This also includes full-time equivalent worked by seasonal, contractual and part-time workers.
GUIDANCE:
Refer to guidance for “Direct Jobs Supported (Operations and Maintenance)”.
Applicability: All client companies, where relevant, but typically not used for clients of intermediated finance (e.g. commercial banks). For financial intermediary clients, refer to “Female Direct Jobs Supported in the Intermediary”. For investment fund investees, refer to “Female Direct Jobs Supported in the investee company”.
Unit: # FTEs
TA-06
Female Construction Jobs (Temporary Construction)
DEFINITION:
Number of temporary full-time equivalent workers hired for the construction of the investment project’s hard assets during the reporting period.
GUIDANCE:
Refer to guidance for “Construction Jobs (Temporary Construction)”.
Applicability: All client companies, where relevant, but typically not used for clients of intermediated finance (e.g. commercial banks) or investment funds.
Unit: # FTEs
TA-07
Female Direct Jobs Created by the Investment (Operations and Maintenance
Number of new full-time equivalent female workers, as per local definition, that are hired as a direct consequence of the investment project implementation during the reporting period. This includes female individuals hired directly and female individuals hired through third party agencies, as long as those individuals provide services related to the operations and maintenance of the investment project. This also includes new full-time equivalent work by female seasonal, contractual and part-time workers. Existing female workers on the records of the client company prior to the investment project are not to be included in this indicator, except where the base case establishes that existing female jobs are terminating without the investment project.
Unit: #FTEs
Jobs Supported
TA-08
Direct Jobs Supported (Operations and Maintenance)
Number of full-time equivalent workers, as per local definition, working for the client company or investment project at the end of the reporting period unless there is seasonal variation (see guidance).
This includes individuals hired directly and individuals hired through third party agencies, as long as those individuals provide services related to the operations and maintenance of the client company or investment project. This also includes full-time equivalent worked by seasonal, contractual and part-time workers.
GUIDANCE FOR FULL TIME EQUIVALENT (FTE):
Temporary workers are converted to full-time equivalent jobs on a pro rata basis, based on the average number of months worked over the total months in the reporting period (e.g., if worker worked for three months, this would be equal to a 0.25 FTE job if the reporting period is one year).
Seasonal or short-term jobs are prorated on the basis of the portion of the reporting period that was worked (e.g., a full-time position for three months would be equal to a 0.25 FTE job if the reporting period is one year). If the information is not available, the rule-of-thumb is two part-time jobs equal a full-time job.
Where companies employ piece-rate workers, consider headcount of number of workers paid piece-rate and an estimate of what proportion of FTE that category of workers are used for (e.g., if there are 200 piece-rate workers on site each day for 6 months of the year, then FTE = 200 x 6/12 = 100).
Similarly, where there are a large number of workers on variable hours or contracts, including day laborers, please include average number of workers on a typical day (total over 24 hours, if shift work), and the proportion of the year those workers are working for (e.g., 3 shifts of 100 people each day for the whole year: FTE = 3 x 100 x 12/12 = 300). If a temporary worker is part time, the calculation should be number of workers times proportion of a full working week times proportion of a year worked (e.g., FTE = 100 x 3/5 x 6/12 = 30)
Part-time jobs for construction workers are converted to full-time equivalent jobs on a pro rata basis, based on local definition (e.g., if working week equals 40 hours, a 24 hr./week job would be equal to 0.6 FTE job). Full-time position for three months would be equal to a 0.25 FTE job if the reporting period is one year.
Unit: #FTEs
TA-09
Construction Jobs (Temporary Construction)
Number of temporary full-time equivalent workers hired for the construction of the investment project’s hard assets during the reporting period.
GUIDANCE FOR FULL TIME EQUIVALENT (FTE):
Temporary workers are converted to full-time equivalent jobs on a pro rata basis, based on the average number of months worked over the total months in the reporting period (e.g., if worker worked for three months, this would be equal to a 0.25 FTE job if the reporting period is one year).
Seasonal or short-term jobs are prorated on the basis of the portion of the reporting period that was worked (e.g., a full-time position for three months would be equal to a 0.25 FTE job if the reporting period is one year). If the information is not available, the rule-of-thumb is two part-time jobs equal a full-time job.
Where companies employ piece-rate workers, consider headcount of number of workers paid piece-rate and an estimate of what proportion of FTE that category of workers are used for (e.g., if there are 200 piece-rate workers on site each day for 6 months of the year, then FTE = 200 x 6/12 = 100).
Similarly, where there are a large number of workers on variable hours or contracts, including day laborers, please include average number of workers on a typical day (total over 24 hours, if shift work), and the proportion of the year those workers are working for (e.g., 3 shifts of 100 people each day for the whole year: FTE = 3 x 100 x 12/12 = 300). If a temporary worker is part time, the calculation should be number of workers times proportion of a full working week times proportion of a year worked (e.g., FTE = 100 x 3/5 x 6/12 = 30)
Part-time jobs for construction workers are converted to full-time equivalent jobs on a pro rata basis, based on local definition (e.g., if working week equals 40 hours, a 24 hr./week job would be equal to 0.6 FTE job). Full-time position for three months would be equal to a 0.25 FTE job if the reporting period is one year.
Temporary Construction Jobs
This indicator includes all workers involved in the construction of the company’s assets, including those employed by third parties if they are working on-site.
Temporary means the jobs will cease when construction of the asset is completed and may include multi-year contracts for large assets.
Construction Companies: This metric does not include workers of construction companies where the client itself is a construction or real estate company. These workers are counted under the Direct Jobs Supported (operations and maintenance) metric.
Unit: #FTEs
Jobs Created
TA-10
Direct Jobs Created by the Investment (Operations and Maintenance)
Number of new full-time equivalent workers, as per local definition, that are hired as a direct consequence of the investment project implementation during the reporting period. This includes individuals hired directly and individuals hired through third party agencies, as long as those individuals provide services related to the operations and maintenance of the investment project. This also includes new full-time equivalent work by seasonal, contractual and part-time workers. Existing workers on the records of the client company prior to the investment project are not to be included in this indicator, except where the base case establishes that existing jobs are terminating without the investment project.
GUIDANCE FOR FULL TIME EQUIVALENT (FTE):
Temporary workers are converted to full-time equivalent jobs on a pro rata basis, based on the average number of months worked over the total months in the reporting period (e.g., if worker worked for three months, this would be equal to a 0.25 FTE job if the reporting period is one year).
Seasonal or short-term jobs are prorated on the basis of the portion of the reporting period that was worked (e.g., a full-time position for three months would be equal to a 0.25 FTE job if the reporting period is one year). If the information is not available, the rule-of-thumb is two part-time jobs equal a full-time job.
Where companies employ piece-rate workers, consider headcount of number of workers paid piece-rate and an estimate of what proportion of FTE that category of workers are used for (e.g., if there are 200 piece-rate workers on site each day for 6 months of the year, then FTE = 200 x 6/12 = 100).
Similarly, where there are a large number of workers on variable hours or contracts, including day laborers, please include average number of workers on a typical day (total over 24 hours, if shift work), and the proportion of the year those workers are working for (e.g., 3 shifts of 100 people each day for the whole year: FTE = 3 x 100 x 12/12 = 300). If a temporary worker is part time, the calculation should be number of workers times proportion of a full working week times proportion of a year worked (e.g., FTE = 100 x 3/5 x 6/12 = 30)
Part-time jobs for construction workers are converted to full-time equivalent jobs on a pro rata basis, based on local definition (e.g., if working week equals 40 hours, a 24 hr./week job would be equal to 0.6 FTE job). Full-time position for three months would be equal to a 0.25 FTE job if the reporting period is one year.
Unit: #FTEs
ENVIRONMENT AND CLIMATE
TA-11
GHG Emissions
DEFINITION:
- Amount of GHG emissions expected to be emitted, or measured, annually. This variable is expressed in tons of CO2eq/y. Project-level emissions information provided by client can be used to calculate derivative indicators (e.g., GHG emissions savings/ reduction/ avoidance) according to the most relevant methodology. For more detailed information on the derivatives indicators and scopes 1-3, see guidance here.
- Also known as absolute emissions; gross emissions.
UNIT OF MEASUREMENT:
✔ Tonnes of CO2e/y
GUIDANCE:
To disaggregate types of greenhouse gas emissions, organizations are encouraged to report greenhouse gas emissions scopes, which allows for disaggregation by GHG Protocol Scopes 1-3.
When reported ex-ante, this metric is intended to estimate the expected amount of scope 1 and scope 2 greenhouse gases to be emitted annually when the project is completed and operating at the designed capacity.
When reported ex-post, this metric intends to express the actual amount of scope 1 and scope 2 GHG emitted during the reporting year.
The GHG accounting of a project is based on established methodologies for ex-ante GHG accounting including the greenhouse gas emission calculation approaches as per, inter alia, the GHG Protocol, the tools and methodologies of the IFI GHG Accounting Group, the Clean Development Mechanism methodology, Verified Carbon Standard, Gold Standard and the EU Emissions Trading Scheme, ISO 14064 (Part 1 and 2), or other international standards. For tools that may be helpful in calculating this and related metrics see GHG Protocol Calculators, CEET, IPCC emission factors.
The start and end of the reporting periods may differ, but they should cover one year. Generally estimated ex-ante for a representative year when a project is expected to be completed and operational at full capacity. This metric is calculated for a typical year of operation, not over the lifetime of the project.
NOTES (if applicable):
Carbon Pricing: Projects with gross GHG emissions (scope 1 + 2) over a certain threshold (e.g., 20,000 tCO2eq/y EIB; 25,000 tCO2eq/y IFC) gross GHG emissions are used to calculate the impact of social cost of carbon in the Economic Rate of Return (ERR). For more details see the EIB GHG Methodologies; MDB GHG Methodology
Related Tools and Links
- International Financial Institutions Guideline for a Harmonized Approach to Greenhouse Gas Accounting
- The EIB Carbon Footprint Exercise includes direct Investment Loans and large Framework Loan allocations that cross the significant emissions thresholds defined in section 5 of the EIB GHG Methodologies. Other intermediated lending is not currently included due to the limited information available to carry out a useful calculation for numerous sub-projects. (See footnote 2 of the Methodologies:
- MDB GHG Methodology: (http://www.ebrd.com/2019-joint-report-on-mdbs-climate-finance;
- For tools to calculate when primary data is not available, the Joint Impact Model (www.jointimpactmodel.org) is a publicly accessible tool, which enables the reporting and assessment of systemic impact indicators such as jobs, value added, and greenhouse gas (GHG) emissions related to investments of financial institutions.
- It includes Scope 1, 2 and 3 emissions as well as emissions of intermediary lending (via FI clients). It also allows for PCAF methodology for carbon accounting, which is the leading standard and already adopted by major banks such as HSBC, Black Rock, Deutsche Bank and others. It has been adopted as the tool to use by the Association of bilateral European Development Finance Institutions (EDFI) when primary data is not available.
- For other tools that may be helpful in calculating this and related metrics see the GHG Protocol Calculators: (https://ghgprotocol.org/calculation-tools).
APPLICABILITY:
Real sector projects where a GHG claim is relevant; financial intermediaries and funds may use this metric when they collect GHG data from their clients. Various tools are available from different DFIs (e.g., CAFI - https://www.cafi.org/welcome, etc.).
TA-12
GHG Emissions Sequestration
DEFINITION:
- Amount of CO2 sequestered during the reported period.
- May be known as "CO2 Reduced", "Avoided /Sequestered.", "Carbon Removals (in line with PCAF standard)"., "Greenhouse Gas Emissions Sequestered".
UNIT OF MEASUREMENT:
✔ Tonnes of CO2/y (per year)
GUIDANCE:
This metric is intended to capture the total amount of CO2 sequestered during the reporting period. This metric can be used in with greenhouse gas emissions mitigation types to disaggregate the types of greenhouse gas emissions sequestered as relevant to the organization's activities. This metric refers to greenhouse gas emissions sequestered during the reporting period, not the lifetime of trees or forestland, for example.
Calculating greenhouse gas emissions sequestration is a technical process that requires standardized and precise methodological guidance. Organizations should refer to at least one of the following standards when calculating this metric: Verified Carbon Standard, Gold Standard, American Carbon Registry, AFOLU Carbon Calculator, Climate Action Reserve Standard, and Plan Vivo Standard. For tools that may be helpful in calculating this and related metrics, see GHG Protocol Calculators.
May be reported once before project begins, then annually. May also be measured Ex-post. Should be reported separately from absolute emissions.
NOTES:
Related Tools and Links
- International Financial Institutions Guideline for a Harmonized Approach to Greenhouse Gas Accounting:
- https://unfccc.int/sites/default/files/resource/AHG-003_Guideline_on_GHG_Accounting_and_reporting_1Jun_.pdf.
- Greenhouse Gas Emissions Mitigation Types (OI9839): (https://iris.thegiin.org/metric/5.1/oi9839/).
- Greenhouse Gas Emissions Sequestered" (PI9878): (https://iris.thegiin.org/metric/5.1/pi9878/) .
- Upcoming FRESCOS tool: (https://app.frescos.earth/) to calculate sequestration, developed together with other European DFIs. And PCAF Global Standard.
- For tools that may be helpful in calculating this and related metrics, also see GHG Protocol Calculators: (https://ghgprotocol.org/calculation-tools).
- Verified Carbon Standard: (https://en.wikipedia.org/wiki/Verified_Carbon_Standard; https://verra.org/project/vcs-program/; http://www.v-c-s.org/).
- Gold Standard: (https://www.goldstandard.org/).
- American Carbon Registry: (https://americancarbonregistry.org/carbon-accounting/standards-methodologies).
- AFOLU Carbon Calculator: (http://afolucarbon.org/).
- Climate Action Reserve Standard: (https://www.offsetguide.org/understanding-carbon-offsets/carbon-offset-programs/voluntary-offset-programs/climate-action-reserve/).
- Plan Vivo Standard: (https://www.offsetguide.org/understanding-carbon-offsets/carbon-offset-programs/voluntary-offset-programs/plan-vivo-system/).
- GHG Protocol Calculators: (https://ghgprotocol.org/calculation-tools).
- For more on the alignment of IRIS metrics to the five dimensions of impact, see IRIS+ and the Five Dimensions of Impact: https://iris.thegiin.org/document/iris-and-the-five-dimensions/.
APPLICABILITY:
Real sector projects where relevant; financial intermediaries and funds may use this metric when they collect data from their clients. For FIs, various tools are available from different DFIs (e.g., CAFI - https://www.cafi.org/welcome, etc.)
TA-13
Water Consumption
Amount of water consumed during the reporting period, measured in cubic meters. This may include water that has been sourced from surface or groundwater resources and is either evaporated, incorporated into a product or taken from one body of water and returned to another, or returned at a different time. Water consumption could be reported annually or daily and can be used to measure reduction in water losses, water consumption of economic activities, and/or as an input to calculate water resource efficiency compared against different industry standards (e.g. per unit of output).
Unit: m3(water)
TA-14
Wastewater Treatment
Amount of wastewater treated to appropriate standards during the reporting period, measured in cubic meters. May also include the amount of untreated wastewater discharges avoided.
Unit: m3(wastewater)
TA-15
Energy Consumption
Energy consumption measured in kilowatt-hours or megajoules of energy consumed during the reporting period. Distinguishing heat and electricity consumption is recommended. This indicator may be used to measure performance (e.g. kWh/m2 for a green building) or could be an absolute measure (e.g. before and after comparison).
Unit: kWh or MJ(energy)
TA-16
Land Use
Hectares of land used during the reporting period. May be used to assess land use efficiency (e.g. MW/ha for reservoirs, i.e. megawatts of power produced per hectare of land used for water storage).
Unit: # ha(land)
TA-17
Sustainable Management of Natural Resources
Hectares of land covered by sustainable land management practices, verified as being sustainable managed according to internationally recognized standards. Sustainable management of living natural resources includes both biodiversity and environmental services. Proxys of certification through an independent audit and verification process may be used to determine sustainable use. Distinct methodologies may need to be used for forestry, farmland, etc.
Unit: # ha(land meeting standards and/or certified)
COMMUNITY CONTRIBUTIONS AND PAYMENTS
TA-18
Community Development Contributions
DEFINITION: Amount of money spent by the client towards activities that benefit local communities during the reporting period.
RATIONALE: This indicator captures the breadth of development effects that IFIs desire to measure and is easily reportable by clients. It yields data that IFIs may use for further analysis on client contributions as they deem fit, including possibilities for referencing contributions for community benefit against total project cost, turnover, profit or total number of beneficiaries. However, establishing a threshold may be challenging since the level of contributions may vary by country, sector and the relevant market in which an IFI client operates. Non-financial contributions of the client are not captured by the indicator due to IFI challenges in ensuring all clients use the same approach to monetize their contributions to local communities.
Unit: # currency
TA-19
Payment to Gov’t
DEFINITION: All transfers to the government made by client company over the reporting period. At a minimum, this includes payments to the government in the form of corporate income or profit taxes. Additional forms of transfer to be reported as appropriate include (i) sales taxes, (ii) net VAT, (iii) royalties, (iv) dividends and related taxes, (v) management and/or concession fees, (vi) license fees, (vii) tax on payment of interest, and (viii) other material payments net of any direct subsidies received.
Unit: # currency