Viewpoint: The impact attribution challenge – moving beyond 100% claims
Project Frame’s categorization of impact attribution highlighted alongside other industry leaders in op-ed about the challenges related to the practice, published by Impact Investor
"Looking at all reported impact metrics, you’d think we’ve solved the world’s biggest challenges overnight. But as we all know, reality tells a different story," write Lisa Hehenberger and Willemijn Verloop in "Viewpoint: The impact attribution challenge – moving beyond 100% claims," published by Impact Investor, which features Project Frame alongside other field leaders.
Read the article to learn more about some sticking points related to impact attribution and how Project Frame's methodology works through some of these issues by distinguishing between value chain and capitalization attribution.
What Is Attribution?
Project Frame defines attribution as a quantitative distribution rule that divides the resulting total GHG emission reduction and allocates one part to each of the solution’s contributors. Because that can be done in many ways, Frame distinguishes between value chain attribution and capitalization attribution.
Value chain attribution attributes portions of emissions reduction impact across interrelated climate solution components that must all work together or co-exist to achieve impact.
Capitalization attribution attributes portions of impact across the shareholders of the company that has put the proposed climate solution on the market.
However, the Frame community has yet to develop a consensus on the topic and as a result, Frame’s methodology guidance does not provide a recommendation as to whether or not investors should attribute impact in their reporting. However, this iteration provides terminology and a new framework for articulating attribution if the investor chooses to do so.
Learn more about how Project Frame defines and distinguishes between attribution types in Project Frame Methodology: Evaluating Greenhouse Gas Impact for Early-Stage Investments.
