Creator: 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, affect measurement was not conserving tempo. Throughout the ecosystem, monetary establishments, buyers, and enterprises had been being requested to report related outcomes utilizing completely different indicators, definitions, and codecs. This fragmentation made comparability tough, elevated reporting burden, and restricted the flexibility of buyers to interpret outcomes throughout portfolios. On the similar time, this constrained studying and weakened the case for scaling funding.Â

For the previous 5 years, the Motion Group has been making an attempt to handle a significant problem: the absence of a shared, sensible method to measuring the affect of WASH finance: to assist higher WASH outcomes by making WASH finance extra credible, extra comparable, and simpler to scale. A harmonised indicator framework isn’t an finish in itself, however a obligatory situation for attaining this. With out it, it turns into considerably more durable to handle efficiency, establish traits, allocate capital successfully, or construct confidence amongst decision-makers. Â
A phased method Â
So, what has occurred so far? 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 information availability, and the operational problem of capturing extra complicated outcomes. Â
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 primarily based on feasibility and usefulness. Working with taking part FSPs, indicators had been built-in into operational workflows and examined by means of a mix of MIS-based reporting and focused survey instruments. The method was iterative: indicators had been assessed in opposition to standards akin to readability, feasibility, ease of adoption, information availability, and analytical relevance, after which retained, refined, merged, or dropped accordingly. Â
This iterative method was important. Earlier phases had already proven that some indicators – significantly these associated to well being outcomes or local weather – are inherently harder to measure, usually requiring main information assortment and extra sources. Others, significantly these built-in into routine MIS assortment and reporting methods, are considerably simpler to seize. Â
The output of this analysis has been not solely the refined WASH affect indicator framework, but additionally an operational guide, offering clear definitions, information sources, and reporting steering on all 11 indicators and 44 sub-indicators, and standardised information assortment instruments and templates.Â
The indicator framework and related instruments had been launched at a webinar on February eleventh, and now the WASH AG should flip consideration to the following vital goal – adoption and use of those indicators, and improvement of a harmonised information assortment framework for WASH finance.Â
So what comes subsequent? From framework to real-world adoptionÂ
Attaining significant scale would require buy-in from buyers, asset managers, and different ecosystem actors who form reporting expectations and capital flows. If extensively adopted, a shared method to WASH affect measurement has the potential to scale back reporting fatigue for investees whereas bettering transparency and comparability for buyers. Extra importantly, it could assist shift the framework from a device utilized by a small variety of establishments to a typical language for the sector. Â
The subsequent part of labor will deal with operationalising information assortment and reporting at scale. The Motion Group will convene an on-line roundtable on Might twentieth of WASH buyers and investees to reveal information submission processes and discover the worth proposition of standardising WASH affect information – significantly by means of integration with the ATLAS information platform. This shall be an opportunity not simply to reveal this course of utilizing actual however anonymised information collected throughout Part III, however an opportunity to listen to from these contributors 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 issues, and form how this subsequent part is carried out.Â
e-MFP and Aqua for All are pleased with what this AG has achieved to date, and are wanting ahead to taking this from framework to follow. If you need to debate the indications, the round-table, WASH finance typically, or when you want to assist this work (together with by way of funding the AG typically or any particular mission particularly), please get in contact with the co-heads Sam (smendelson@e-mfp.eu) and Marcela (m.perez@aquaforall.org).Â
Picture credit score: Masudar Rahman by way of pexels
In regards to the Authors:
Sam Mendelson & Marcela Perez are the co-heads of the WASH Motion Group.
