Rating Services

Inclusion [SR] has designed four rating systems to measure the social performance, financial sustainability, and the Environmental, Social and Governance (ESG) practices of an institution.

Our ratings provide independent and expert analysis that promotes responsible investment decisions and empowers responsible management practices of organizations.

Social Performance & Impact Rating

Our Social Performance & Impact Rating (SPIR) provides independent analysis to better understand how effective an organization is at translating its social mission into practice.

The SPIR is based on an analysis of the organisation's capacity and ability to oversee, manage and monitor its performance in its drive to achieve its social mission.

The analysis is based on 7 factors and more than 400 indicators, and it is fully aligned with the Social Performance Task Force’s Universal Standards for Social Performance Management and the Client Protection Principles.

7 factors of analysis:

1 - Social Mission
2 - Governance
3 - Beneficiary Focus
4 - Social Outcome or Impact
5 - Organization
6 - Environmental Concerns
7 - Financial Sustainability

Why do an SPIR?

• To assess your organization’s effectiveness at translating its mission into practice

• To identify your organization strengths and areas for improvement relevant to social performance

• To increase your reputation and earn trust with important stakeholders of the industry

• To strengthening institutional decision making and financial results

• To enhance accountability and transparency to stakeholders

• To attract interest from donors and investors



Financial Sustainability Rating

Our Financial Sustainability Rating (FSR) provides independent analysis on long-term institutional viability and financial sustainability while at the same time integrating relevant social performance factors into the assessment such as client protection, governance, and environment.

The FSR assesses the organization’s financial strategy and operations to the extent they are aligned with its social mission or goals. The FSR captures the organization’s past financial performance, its current financial strength and risk factors. The assessment looks towards the overall sustainability and to what extent it balances the financial interests of all its stakeholders.

7 factors of analysis:

1 - Stakeholder Balance
2 - Effective Use of Financing Resources
3 - Capital Structure
4 - Asset Quality
5 - Management Strength
6 - Earnings Power
7 - Liquidity

Why do an FSR?

• To acquire independent information about your organization’s institutional and financial viability

• To acquire a double-bottom line assessment (financial and social performance)

• To support the integration of social performance factors into an organization’s management and operations

• To increase your reputation and earn trust with important stakeholders of the industry

• To strengthening institutional decision making and financial results

• To enhance accountability and transparency to stakeholders

• To attract interest from donors and investors



Environmental, Social and Governance Rating

The Environmental, Social and Governance (ESG) ratings provides independent analysis about the environmental, social and governance performance and quality of ESG management of a company.

The ESG addresses issues such as corporate governance, including strategy and leadership, transparency or management of employees. Social criteria look to how effective the organization is translating its mission in the practice. With regards to the environmental criteria the rating looks at the organization policies, practices and environmental risks.

Factors being measured:

'E-dimension' or environmental criteria looks at how a company performs as a steward of the natural environment;
'S-dimension' or social criteria examines how a company manages relationships with its employees, suppliers, customers and the communities where it operates;
'G-dimension' or governance looks at a company's leadership, executive pay, audits, and internal controls, and shareholder rights.

Why do an ESG rating?

• To include environmental, social and governance factors into financial decisions

• To support responsible investment strategies

• To better integrate ESG factors in your organization strategy and meet your objectives in these areas

• To distinguish your organization in the market that demands more ESG criteria

• To demonstrate your organization’s competitive advantage to investors, donors, clients

Social Enterprise Rating

Social enterprises exist at the intersection of the traditional business, government, and non-profit sectors, aiming to address unmet needs and tackling social and environmental problems.

Our Social Enterprise Rating System (“SERS”) is a flexible tool to measure the social performance and impact of a social enterprise addressing the spectrum of nonprofit to for-profit entities.

3 factors of analysis:

1 - Mission Fulfillment: the capacity of identifying a problem, defining a mission statement, and formulating a response accordingly.
2 - Beneficiary Perspective: the approach towards the inclusion of the identified beneficiaries in its activities, as well as the matrix of benefits generated.
3 - Wider Impact: the additionality of the intervention vs the business-as-usual scenario, its impact multipliers, impact risk, innovative ideas, and responsible management.

Why do an SER rating?

• To assess your organization’s capacity to fulfill its mission and positively impact your community

• To stand out among other SEs, attracting the interest of donors and investors and building a sustainable funding model

• To mitigate impact risks, and boost impact multipliers

• To increase transparency, accountability and improve balancing between different purposes

• To increase the probability of providing human, social, and environmental benefits in a sustainable way

• To set a roadmap to improve the lives of beneficiaries and promote responsible management



Ratings process

Regardless of the type of rating, there are four main phases: