A Guide To FLIT Invest’s Impact Metrics

Impact investing has a few essential components. According to GIIN, the Global Impact Investing Network, impact investing must be intentional, positive, measurable, and have a social or environmental impact. In this article, we will focus on the measurable component of impact investing and what happens behind the scenes at FLIT Invest. Impact tracking is a feature unique to our app, meaning that not only do we do all this analysis, but you get to see it too! Read on to learn more. 

How Do We Measure Your Impact?

We use industry best practices to calculate impact. Our methodology aligns with the Global Impact Investing Network’s recommendations, and it follows the norms of the Impact Management Project. Our team of analysts scour data to calculate the impact of your investments with carbon metrics, thematic metrics, and the UN Sustainable Development Goals. On top of this, we also use multiple 3rd party datasets for analysis and present impact on a whole portfolio level and per investment theme.

What Do We Measure?

Carbon Metrics

FLIT Invest measures the carbon exposure of each portfolio using two well-defined metrics by the Task Force on Climate-related Financial Disclosures (TCFD) standards: Weighted Average Carbon Intensity and Exposure to Carbon-Related Assets. Essentially this is:

  1. How much carbon per million dollars of revenue a company emits
  2. What carbon-related business lines they hold

The calculation of each metric is based on the TCFD guidance. FLIT Invest presents carbon metrics to all users based on a total portfolio level, considering listed equity investments.

Thematic Metrics

Thematic metrics are specific to the investment theme and measure impact in that area. We track multiple thematic impact metrics and present 3 key metrics per investment theme. These metrics are based on industry best practices, primarily sourced from GIIN’s IRIS impact measurement and management platform.

To see which metrics we track, you can check out the investment theme pages: Affordable HealthcareClean WaterClimate SolutionsGender EqualityGreen Energy, and Pet Welfare. Details on the calculation and descriptions of each metric can be found inside the app.

UN SDG Mapping

The UN Sustainable Development Goals sit at the core of the 2030 Agenda – they aim to provide a shared blueprint to secure sustainable, peaceful, and equitable life on earth for everyone. The 17 goals recognize the importance of social, environmental, and economic development occurring in harmony within and between nations.

 

At FLIT Invest, we conduct SDG revenue mapping to understand the business model, products, and impact of each company within your portfolio. Through our analysis, you can track how much your investments contribute to the UN SDGs. You can learn more from our article, The UN SDGs Explained for Impact Investing. 

Do We Present Personal Impact or Collective Effort?

A bit of both. The carbon metrics (relative carbon intensity and fossil fuel involvement) are the score of your portfolio, and you can also compare yourself to the global average. Other metrics, such as the UN SDG tracker and the thematic metrics, are related to your portfolio companies – meaning the companies you invest in through your FLIT investment portfolio. Your portfolio companies achieved these impacts from when you first started investing in them via FLIT Invest. The thematic metric data shown is not your personal impact but what your portfolio companies have generated under your ownership collectively with other investors. You can check your impact inside the FLIT Invest app, which we update weekly.  

Stay tuned for more information on each of these impact measurements. In the meantime, why not brush up on your Impact Investing know-how with our Impact Investing 101 series? Knowledge is power, and financial literacy is a core tool in the financial activism toolkit. Improving our financial literacy helps to make more informed and powerful choices when we vote with our dollars and shape a better future.

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Prior to founding FLIT Invest, Alejandro worked at J.P. Morgan’s Private Bank in New York, where he oversaw and managed investments for ultra-high net worth families. Before J.P. Morgan, he was an investment analyst at Northwestern Mutual, responsible for developing comprehensive financial plans and asset allocation models. Alejandro is a CFA charterholder and former professional soccer player.

Steven is a UX/UI Designer based in Los Angeles, CA. He received his BA from CSULB focusing on graphic design. Steven approaches his projects with a keen eye for design while prioritizing user-friendly solutions. He is passionate about animal welfare, and environmental causes.

Prior to FLIT, Kinga worked at Ericsson as a software developer specializing in data analysis where she developed machine learning models to evaluate the quality of the encrypted media traffic over mobile networks. She is an advocate for promoting a transparent and effective work environment. Kinga values diversity and feels strongly about providing access to education. She has a sweet tooth, loves reading and HIIT training.

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Prior to founding FLIT Invest, Richard was an investment banker at ING in London. He advised banks, asset & wealth managers, FinTechs and other financial institutions on mergers & acquisitions, financing and other strategic projects. He is an impact investing enthusiast having advised BlueOrchard – leading global impact investing asset manager – on their sale to Schroders. Richard is a former professional triathlete, vegetarian and nature enthusiast.

Serena is a sales and growth professional. She has experience in rapidly scaling revenues for consumer products through the deployment of marketing campaigns and team strategy development. Serena has a keen eye for identifying and implementing emerging consumer trends that result in better user experiences. She is passionate about criminal justice reform and is a loud voice in the fight for gender and racial equality.

Martin is a Software Architect and Developer whose goal is to make FLIT Invest an application that puts usability and security first. Martin started his career in finance, where he developed an integrated treasury solution for banks and corporations. Then he deep-dived into medical imaging at Siemens Healthcare, where he spent years developing a next-generation radiography system. Martin is an avid traveler and loves cycling, hiking, and skiing.

Zsolt has worked as a Software Engineer in Germany, Scotland, and Hong Kong. His work experience lies predominantly in the FinTech industry, both in startups and well-established companies. Before FLIT Invest, Zsolt was a developer at Asia’s leading wealth management platform in Hong Kong. Alongside FLIT, Zsolt is completing his Master’s Degree in applied mathematics in London. In his free time, he enjoys swimming and reading fiction.

Tina is a UX/UI Designer based in Los Angeles, CA. Her expertise in both Economics and Interactive Design allows her to approach topics from a variety of perspectives in order to create products, assist people, and solve problems. She characterized challenges in a larger scope as an explorer, and she continued to look for solutions that would better human life. In addition to design, Tina is enthusiastic about women’s issues in society and animal welfare in various countries.

Peter is a Mobile Engineer with extensive experience in native iOS and Android app development. He has worked with various Fortune 500 companies across industries including fintech, transportation, human resources, energy, accounting, and pharmaceuticals. Being a lifelong learner he’s always eager to acquire new skills in various topics. He’s enthusiastic about different aspects of finance, and in his free time he enjoys working out.

Nick is a User Researcher based in Los Angeles, CA. After receiving his BA in Psychology, he moved on to receive a certificate in UX/UI from UCLA which set him on the path to understanding users. Nick approaches User Research with an empathetic lens, ensuring that every user’s needs are considered in each step of the process. Nick is passionate about providing sustainable change, and in his free time, he’s looking for another national park to check off the list.

Brian is a self-taught iOS developer based in Los Angeles, CA. Driven by a strong interest in finance and renewable energy, he takes pride in being part of a team that takes huge steps towards a greener future. Prior to joining FLIT, Brian played multiple competitive games such as League of Legends at a top-tier level- applying the same mindset of growth and improvement from gaming to his iOS development. Brian is often playing the piano in his free time and is extremely fascinated by artificial intelligence.

Rob is an impact investing analyst passionate about sustainability and its role in finance. Currently, he is a student at the University at Buffalo (UB), where he is the President of the UB Sustainable Business Association and a Board Member of the UB Equity Research Group. In his free time, you can catch Rob exercising or golfing.

Holly is a BSc Psychology with International Placement graduate from the University of Manchester, UK. She has worked and volunteered in the social care sector for 7 years and whilst at university, established an award-winning student zero-waste shop. She is passionate about social justice and environmental sustainability, and in her spare time volunteers as a Scout Leader and enjoys going for tea and cake with friends.

Jake is an entrepreneur, designer, and biologist passionate about sustainability. Previously, Jake founded VOSTIC, a company that manufactured and distributed a kelp-based replacement for plastic. Jake holds a master’s degree in Design Systems from Pacific Northwest College of Art and a bachelor’s degree in Biology from Lewis & Clark College. On weekends you might find him making music or snowboarding at Mt. Hood.