Inside Impact Reporting: An Interview on Transparency and Accountability

An important part of our social impact work includes analysing and validating the impacts of our projects on the local environment and communities. Transparency and credibility are built into the foundation of our work, and at ClimatePartner Impact, we have an in-house, dedicated team of experts for analysing these types of impacts. To learn more about how they define and validate impact, we sat down with one of our experts and asked them about their work. Read their responses below, and add any questions you might have in the comments!

Q: How would you describe what you do in impact reporting ?

A: It’s our responsibility to report on the impact our projects have “beyond carbon”, which means measuring parameters beyond carbon reduction. We analyse and report on how our projects affect people in the local communities and the effects on local ecosystems. Tracking data over time enables us to provide our customers and investors with essential information, transparency, and accountability.

Q: What are your guiding practices and principles when it comes to impact reporting?

A: Topics like greenwashing and impact washing are of top concern for all of us working in this field, and something we take very seriously. When analysing and reporting on a project, there are many principles and practices that we follow to ensure that the reports accurately reflect what is happening locally.

For instance, we rely on reports, photos, and videos we receive directly from the partners on-site. We regularly visit the sites ourselves to confirm the information we receive. We further build a comprehensive overview of a project by using tools like remote sensing and satellite imagery to confirm information like historical land use and growth rates.

When we are working with data, we always opt for the most conservative estimate, meaning the one that is most concretely supported by the data. Transparency and accountability mean only making objective statements and providing information that we can prove without doubt, so that our investors and customers can rely on our reports.

Finally, we adhere to third-party frameworks and certification for carbon and SDG related reporting. In addition, we have created our own reporting framework to assess social impact that goes beyond mandatory Sustainable Development Goal contributions. Our team uses only the latest standards, research, and expert opinions on these topics. We are also constantly developing, improving, and adapting our system over time to stay up to date with the latest findings and literature.

Q: Which other indicators help you evaluate the impact of your projects?

A: While many methodologies focus on carbon emission reductions or removals, we go beyond these standards. Our company prioritises social impact, ensuring that each of our climate projects also supports local communities. We rely on both qualitative and quantitative data for these reports, assessing things like concrete job creation (number of jobs) alongside questions like: what does a percentage of increased income actually mean for a family? Our projects aim at creating economic, social, and environmental impacts, and we take a holistic view for concise and reliable reporting.

Our Impact Reporting team has identified standardised KPIs that are specific to the type of project - a reforestation project measures impact very differently than a cookstove project. For example, with a cookstove project, we collect and analyse very granular data, such as the number of hours spent collecting firewood, mass of firewood consumed per day, and size of household. We differentiate between direct and indirect beneficiaries, like the women actually using the stove compared to the people living within the dwelling. We also gauge time and expenses saved, as well as whether these savings translate into community or health benefits. On the other hand, reforestation projects are tracking data like growth and survival rates of plantings, as well as employment opportunities for different segments of the local community.

Q: Which aspect of your work is most important to you?

A: There’s not just one, but many. Climate action, obviously, is critically important. However, how we reach our climate action goals matters just as much. We think it’s critical to follow an inclusive approach, to create a collaborative relationship with people in the project areas that improves their living conditions. We believe that impactful results and project success depends on community engagement and ownership. Empowerment is vital for long-term success, ultimately enabling communities to become self-reliant and independent of our support. And respecting local knowledge is also essential; if we want to restore ecosystems and improve livelihoods, we need to do it together.

Q: What do you see in the field of impact reporting that is motivating? What is concerning?

A: The most concerning thing for us is obviously the reports of greenwashing, impact washing, and SDG washing in the field of climate projects. We need impactful, effective projects to reach our global climate goals, and these kinds of reports both directly and indirectly affect our ability to get there. Transparent, reliable data is essential, and we all need to do our due diligence to make sure that investments are going to high-quality projects that make an impact.

One of the most motivating aspects for me is receiving regular updates and insights from the projects we develop jointly with trusted partners on the specific regions. It's incredibly rewarding to see how all the efforts, whether financial, administrative, or technical, translate into positive impacts. While numbers are essential for reporting, they don't always capture the full story. There is so much value in the real-world changes and improvements we help create. The growing level of awareness among project developers and supporters of the importance of transparency and applying due diligence when it comes to impact reporting is encouraging.

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