IMPACT Awards 2022

Innovation/invention of the year: LISC's Lending Impact Matrix

When it comes to understanding the impact investments are having, data is power. To provide this insight,  the Local Initiatives Support Corporation (LISC) developed an Impact Matrix.

This measures every on-balance sheet loan the US non-profit community development financial institution approves against proprietary impact criteria and is based on the "five dimensions of impact".

These are:

  • What the intended outcome is;
  • Who experiences it;
  • How much of the outcome is experienced;
  • The contribution of the business to that outcome;
  • The risk that the impact doesn't happen as planned.

Lisa GloverIt also adds a LISC-specific sixth criteria: that the impact be community centred.

This award recognises the way this data-informed approach enables LISC to help community development financial institutions to grow and generate new economic benefits, as well as other opportunities that create impact.

"LISC has been making an impact in underinvested communities across the US for over 40 years," LISC chief executive office Lisa Glover says.

"The LISC Impact Matrix allows us to identify, in new, targeted ways, how all our projects are making meaningful change. And it allows us to refine the tools we have at our disposal to intensify LISC's impact through subsidised capital, grant opportunities and technical assistance.

"We are honoured that Environmental Finance has recognised our work to bring about a comprehensive, standardised review of impact for every deal LISC undertakes."