Testing WASH Impression Indicators within the Actual World

Writer: Sam Mendelson & Marcela Perez.

In 2021, the WASH Motion Group – co-led by e-MFP and Aqua for All – got down to handle a structural drawback within the sector: whereas WASH finance was increasing, influence measurement was not maintaining tempo. Throughout the ecosystem, monetary establishments, traders, and enterprises have been being requested to report related outcomes utilizing completely different indicators, definitions, and codecs. This fragmentation made comparability troublesome, elevated reporting burden, and restricted the flexibility of traders to interpret outcomes throughout portfolios. On the similar time, this constrained studying and weakened the case for scaling funding. 

For the previous 5 years, the Motion Group has been attempting to handle a significant problem: the absence of a shared, sensible method to measuring the influence of WASH finance: to help higher WASH outcomes by making WASH finance extra credible, extra comparable, and simpler to scale. A harmonised indicator framework is just not an finish in itself, however a needed situation for attaining this. With out it, it turns into considerably tougher to handle efficiency, determine developments, allocate capital successfully, or construct confidence amongst decision-makers.  

So, what has occurred to this point? In 2023-24, an preliminary set of indicators was developed to seize the monetary, social, local weather, and service-level dimensions of WASH investments, adopted by a feasibility evaluation that examined how these indicators aligned with current practices throughout asset managers, monetary establishments, and SMEs. This earlier analysis highlighted persistent challenges, together with inconsistent reporting necessities, restricted knowledge availability, and the operational issue of capturing extra advanced outcomes.  

Constructing on these findings, Part III – which has simply wrapped up – centered on pilot testing the framework with monetary service suppliers (FSPs) in real-world settings, and refining them iteratively based mostly on feasibility and usefulness. Working with collaborating FSPs, indicators have been built-in into operational workflows and examined by way of a mixture of MIS-based reporting and focused survey instruments. The method was iterative: indicators have been assessed towards standards equivalent to readability, feasibility, ease of adoption, knowledge availability, and analytical relevance, after which retained, refined, merged, or dropped accordingly.  

This iterative method was important. Earlier phases had already proven that some indicators – notably these associated to well being outcomes or local weather – are inherently harder to measure, typically requiring major knowledge assortment and extra assets. Others, notably these built-in into routine MIS assortment and reporting methods, are considerably simpler to seize.  

The output of this analysis has been not solely the refined WASH influence indicator framework, but additionally an operational handbook, offering clear definitions, knowledge sources, and reporting steering on all 11 indicators and 44 sub-indicators, and standardised knowledge assortment instruments and templates. 

The indicator framework and related instruments have been launched at a webinar on February eleventh, and now the WASH AG should flip consideration to the subsequent vital goal – adoption and use of those indicators, and growth of a harmonised knowledge assortment framework for WASH finance. 

Reaching significant scale would require buy-in from traders, asset managers, and different ecosystem actors who form reporting expectations and capital flows. If extensively adopted, a shared method to WASH influence measurement has the potential to scale back reporting fatigue for investees whereas bettering transparency and comparability for traders. Extra importantly, it could actually assist shift the framework from a device utilized by a small variety of establishments to a typical language for the sector.  

The subsequent section of labor will deal with operationalising knowledge assortment and reporting at scale. The Motion Group will convene an on-line roundtable on Might twentieth of WASH traders and investees to reveal knowledge submission processes and discover the worth proposition of standardising WASH influence knowledge – notably by way of integration with the ATLAS knowledge platform. This will probably be an opportunity not simply to reveal this course of utilizing actual however anonymised knowledge collected throughout Part III, however an opportunity to listen to from these individuals about their ache factors, capability and priorities. We’re at present having discussions with related stakeholders prematurely of this assembly, to collect suggestions, handle sensible concerns, and form how this subsequent section is carried out. 

e-MFP and Aqua for All are pleased with what this AG has achieved thus far, and are trying ahead to taking this from framework to apply. If you want to debate the indications, the round-table, WASH finance usually, or should you want to help this work (together with through funding the AG usually or any particular undertaking particularly), please get in contact with the co-heads Sam (smendelson@e-mfp.eu) and Marcela (m.perez@aquaforall.org). 

Picture credit score: Masudar Rahman through pexels

In regards to the Authors:
Sam Mendelson & Marcela Perez are the co-heads of the WASH Motion Group.