About

About the Impact Measurement System

Introduction:

Traditional ESG rating systems are insufficient in evaluating the social, governmental and environmental impact of digital assets. These systems are designed for evaluating the impact of traditional assets such as stocks and bonds, which have different characteristics and operating principles than digital assets. Most digital assets operate within a decentralized ecosystem and can have unique social, governmental and environmental impact criterias that are not accounted for by traditional ESG metrics.

The Impact Measurement System (IMS) was specifically designed to address these gaps and provide a holistic evaluation on the impact of digital assets on society and the environment while trying to give a more accurate and transparent methodology so that many parties can keep building and improving.

IMS:

The Impact Measurement System (IMS) is a powerful tool designed to assess the sustainability and impact of decentralized digital assets. Developed by Enigma Crypto Capital for Metera Protocol, a DeFi Tokenized Portfolios Protocol focused on facilitating impact investing. This system provides investors and organizations with valuable insights into the social and environmental impact of their investments. With the IMS, individuals and organizations can make informed decisions that drive positive change and create a sustainable future for all.

Metera Protocol uses the Impact Measurement System to assign a Global Impact Score to each MTK (tokenized portfolio), enabling users to make more informed investment decisions by providing them with more detailed information on how each project is making an impact.

Strengths

Multi-dimensional

- Most ESG rating models assess entities either for their business characteristics or for the positive impacts they create. They are either meant for a business or for an impact fund. This model assesses the Digital Asset from both dimensions, hence unique.

Strong Coverage

- E, S, G, Economical, Risk Profile and Impacts

- Two complementary models to assess impacts; SDG & IRIS, strengthen the reliability

- Assessment of Crypto / Digital dimensions for which there are no reference models or frameworks available in the industry currently

- Assesses Positive as well as Negative impacts with equal importance

- ~ 100 indicators (attributes) assessed

Directly based on Global Frameworks – Feasibility validated

- SDG

- IRIS

- SASB industry-based frameworks: Infrastructure – home building; Consumer Goods – Apparel; Communication & Internet

- World Economic Forum Risk Reports

- EU / South African Taxonomy

- ISSB GSRM guidance followed

Splitting the process into Manual & Traditional - Corroborated by validation

- Enables quick elimination of the unfit and detailed assessment of the short-listed entities. Once “Pending” items are cleared and with more testing iterations, the Manual model can be further optimized to enable a “Standard Operating Procedure” based quick assessment which can be carried out easily and quickly by any member with training.

Easily Automatable - Corroborated by validation

- The Indicators are designed in such a way that they can be effortlessly automated once the model stabilizes.

Scalable – Corroborated by validation

- Conceptual model considers a super-set of dimensions, coverage and design. The model is foundational and scalable to consume future requirements

The breadth and richness of the Dimensions & Coverage make the model very unique, relevant, and valuable for the industry.