Fund managers are continuing to struggle with providing comprehensive and transparency impact disclosures to investors, according to a study by BlueMark. The independent impact verification and intelligence provider for the impact and sustainable investing market found that 97% of the 37 assessed funds do not regularly check the quality of their impact data. The funds’ reporting practices achieved an average score of 54%, with BlueMark highlighting gaps in disclosures, the quality of data and lack of verification, raising concerns about “impact washing” risk. In comparison, the funds averaged a score of 63% on governance. The study also found that large and small funds were more likely to outperform mid-market asset managers in impact governance and reporting, while the industry as a whole struggled with underdeveloped reporting practices and meaningful stakeholder engagement. “As demand for transparency grows, standardisation and accountability are needed to ensure impact investing delivers on its promises,” said Paige Nicol, BlueMark’s Senior Director. “With credible reporting, the industry can keep high levels of trust investors placed in it, that is critical to scaling impact investing.”
