Nexus for Development works collaboratively to realise economies for scale for members and partners to access finance. Knowledge and lessons learned are shared as much as possible for making decisions on which projects should scale up. Nexus for Development also connect with corporates looking to engage in CSR.
Nexus IA framework so far builds on the carbon certification process requiring significant data collection and monitoring. To gain carbon credits, SPOs need to demonstrate CO2 emission reductions and additionality of benefits, meaning they would not be possible without raising these funds.
To demonstrate contribution to other benefits, Nexus has been trying to assess the SROI of the projects, as Nexus tries to quantify the social and economic benefits of the projects it supports for individuals and communities. It is difficult to compare their impact to other organisations because of their niche area. Nexus does not aggregate results at portfolio level as it would not accurately convey the depth of change.
Gold Standard and United Nations Framework Convention on Climate Change for Carbon Finance. SROI to measure associated socio-economics benefits.
SPOs self-select Nexus on the need for impact assessment as carbon accounting requires technical expertise and is a condition to access carbon credits. Then only robust and mature business models are selected by Nexus. Once carbon credits monitoring is in place, collecting additional socioeconomic data for beneficiaries is not a challenge. The first impact results – social, health, economic and environmental can happen quickly but the monitoring happens after 1 to 2 years. Location of the business (local or international), business model and sample size affect the budget for assessment. Monitoring costs can be between USD 30,000 to 100,000. Two staff at Nexus are carbon project experts. Nexus also relied on the support of academics to apply the SROI methodology.
In the brochures, social media and their own website, the most impactful numbers like reductions in emissions, respiratory diseases, required time and increases in acres of trees/forests and quality of life are highlighted.