How is impact measured?

Georges Bock
Table of contents
Georges Bock

Finding a way to measure the impact of a fund has been an eighteen-month long journey. When we set out to build Moniflo, one of the key issues we wished to solve for people investing in funds was a lack of transparency about the impact of investments. Finding the right data to set this right was one of our first major priorities.

How we measure impact

We work with Clarity AI, a sustainable data provider, to get the impact measurement you see in Moniflo. Their impact score shows whether the companies in the fund or portfolio are aligned with a specific UN Sustainable Development Goal (SDG).

Before launching, we analysed +30 data providers and met with over 15 of them in person or by call to get an understanding of how they work and seek assurance that the data would be as accurate and useful as possible.

We’ve now had hundreds of conversations and exchanges with Clarity AI about their methodology, and their commitment to constantly reviewing and improving their data.

To calculate the impact score, Clarity AI tracks and measures a set of 60+ relevant metrics linked to 52 of the targets that come with the SDGs. That’s twice as many metrics as most other providers of impact scores.

What metrics are used to calculate the impact score?

Companies can deliver positive value to the environment and society either through their products (e.g., selling treatments that save lives) or through their operations (having women on the board). Clarity AI uses metrics that cover both these kinds of contributions.

If we look at the Gender Equality score, for example, the metrics that Clarity A Ilooks at include number of women on the board, access to day care services, and female employment growth.

How the metrics are chosen

Clarity AI reviews hundreds of diverse sources of information from the relevant literature – from data released by public bodies to recent scholarly articles published in leading journals – to understand what company actions can have what impact. They then look at the metrics that companies report, and match these up to the different company actions so that they can effectively measure their performance for each of the actions with an impact.

Why we trust the score

The score is designed to allow investors to have a complete yet simple picture of a portfolio or fund’s impact, understanding each company’s positive and negative contributions to society and creating a view of where the portfolio is exposed to better or worse performing funds across a single or several goals.

Clarity AI includes new data whenever it becomes available and is constantly assessing and reviewing its methodology to ensure the scores are as effective, trustworthy, and unbiased as possible.

Soon, companies in Europe will be asked to report on even more social and environmental issues. With each new set of data, the methodology will evolve and the scores will increase in accuracy.

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Georges Bock is the CEO and founder of Moniflo. He sees money and investing as a way to shape the future by taking a bottom-up approach. He lives in Luxembourg with his family and his dog Yola and enjoys nothing more than watching his two children discover the world.


When will Moniflo be available for download?

At the end of 2022, you can already download a first version of the app to practice investing. However, if you want to buy and sell funds, you'll have to be patient. We expect to launch the final version of the app in early 2023. It's best to get on the waiting list to be among the first to test Moniflo.

Why doesn't Moniflo offer the option to invest in cryptocurrencies?

We want to build a platform for critical and conscious people who focus on long-term investments where the money serves a good purpose. Cryptocurrencies are highly volatile and speculative. Since they are not regulated, investors also do not benefit from the same high level of protection and risk diversification as with mutual funds. This does not fit with our vision of offering long-term investments.

How is Moniflo different from other investment platforms?

With our app, we want to reach all people who want to invest in a value-based way. We also focus on actively managed funds and not ETFs, as experts agree that ETFs have their limitations with regard to value-based investing. By the way, unlike other platforms, we do not charge any transaction or account fees. Moniflo is therefore also suitable if you only want to invest small amounts at first.

How can I be sure that the companies in the fund or portfolio I want to invest in are incorporating their values into their work and projects?

We work with Clarity AI, a provider of sustainable impact data, to obtain data for our Impact Score. This indicates whether the companies in the fund or portfolio are aligned with a specific UN Sustainable Development Goal (SDG). To calculate the Impact Score, Clarity AI tracks and measures a range of more than 60 relevant metrics linked to 52 SDG targets.

How is my money protected?

Moniflo will operate with a full investment firm license under strict EU laws and regulations. This means that your money is protected up to €20,000 by the Luxembourg Deposit Guarantee Scheme - and that your money and Moniflo investment account are safe.
We work with trusted partners and payment institutions to keep your cash deposits safe. Our payment partner Mangopay is subject to both national and EU payment regulations that ensure the safety of your money. In addition, your deposits are fully segregated and held in trust with unlimited protection. For example, your cash deposits up to €100,000 are protected by the Luxembourg Deposit Guarantee Scheme.

How is my data stored and backed up?

Your data is secured with 256-bit encryption so that only you and Moniflo can access your personal and financial information. We use state-of-the-art MPC technology that prevents unauthorized access to your investments. In addition, we employ multi-level security measures to protect your money and data, including secure servers.
In the course of providing our services and operating our business, we also share data with third parties who meet our security standards. You can read more about how and why we share your information in our Terms and Conditions.

Accounts and transactions are free of charge. How does Moniflo earn money?

Asset managers with investment funds on the Moniflo platform bear the bulk of the costs. They pay for their funds to be listed on the platform and pay for additional services. In the app, transactions and accounts are free. We expect that a small fee will be charged when users deposit or withdraw money from their investment account. The reason for this is to cover our internal costs, as well as to cover the costs of the payment provider.