In every commodity program, these three results areas are key to making impact. They are captured in Key Performance Indicators (KPIs) that are measured at project and program level through our Result Measurement Framework. Impact is measured according to five SDG-related impact themes that have been defined in IDH’s 2016-2020 strategy as key for sustainable trade: smallholder livelihoods, mitigation of deforestation, living wage and improved working conditions, responsible agrochemical management, and gender equality and empowerment. IDH has defined impact claims that will be assessed through a third-party evaluation by Wageningen University and KPMG.
In the sector chapters, we report on progress against planned activities, in view of our 2020 impact claims and highlight key achievements on changing business practices and sector governance in our commodity and landscape programs.
For each KPI in this report, the 2016 results are compared against the planned targets for the year. The results presented in terms of KPIs are to a large extent based on information that IDH obtained through its implementing partners. The same goes for reporting on the planned activities, which underpin the results. The role of IDH in obtaining these results is highlighted by concrete examples per sector program.
With the start of our new program strategy, we introduced the IDH Result Measurement Framework (RMF) replacing the previous Monitoring & Evaluation (M&E) system of IDH’s programs. The RMF will be applied to all new projects during 2016-2020 (phased in during 2015). Our new RMF strengthens and replaces certain KPIs to better capture the progress in our programs. As a result, some KPIs – mainly applying to changes in business practices and improved sector governance – do not have a baseline on which to report, due to changes in the measurement guidance protocols. The RMF is based on the standard for measuring results in private-sector development that is formulated by the Donor Committee for Enterprise Development (DCED). However, as endorsed by the Impact Committee and Supervisory Board, we do not aim to fully comply with every aspect of the standard but merely use it as guidance to structure and continuously improve the monitoring and evaluation process at IDH. This structured approach allows IDH to improve the impact measurements of its programs and the quality of reporting to its donors.