BoP Access Company is a fictional company that was founded on the belief that offering enabling technologies to the 4 billion people living on less than US$3 per day will improve their lives and lead to sustainable growth in incomes, capabilities, and social status. The mission of the organization is to transform Sub-Saharan Africa through the distribution of appropriate technologies that deliver basic services to those overlooked by the formal economy. The organization currently operates in Ghana and Kenya, selling point-of-use water filters and solar lanterns through local microentrepreneurs to the rural poor. BoP Access Company plans to expand its reach across sub-Saharan Africa and to add new products to their offerings in the future.
A primary investor in BoP Access Company requires that the company track its performance using IRIS. At the time of investment, the investor and the company established a core set of measures about the company’s finances, employees, clients and microentrepreneurs for regular data collection and reporting. Recently, BoP Access Company also began to report its environmental performance.
This report represents an example of how an organization might produce a performance report using the IRIS framework. The data and the organization in the report are fictional.
Consolidated IRIS Report (FY 2009)
|Name of Organization||BoP Access Company|
|Mission Statement||To empower overlooked individuals at the Base of the Pyramid, by selling innovative products that enable access to basic services|
|Social Impact Objectives||
- Access to clean water
- Access to energy
- Equality and empowerment
- Health improvement
- Income/productivity growth
|Cost of Goods Sold||$171,500|
|Depreciation and Amortization Expense||$9,000|
|Net Income Before Donations||$25,500|
|Cash and Cash Equivalents- Period End||$2,432,000|
|Equity or net assets||$1,910,300|
|Ratios Concepts and Calculations|
|Operating Profit Margin||3.30%|
|Return on Equity (ROE)||1.33%|
|Hand Held POU Charcoal Water Filter||25 candle power 5 hour Solar Lantern||Organization Total|
|Quantity and Reach|
|Client Individuals: Poor||25,000||1,800||25,900|
|Client Individuals: Very Poor||2,450||120||2,510|
|Client Individuals: Rural||25,000||1,800||25,900|
|New Client Individuals||6,000||600||5,800|
|Client Individuals Provided New Access||5,000||500||4,600|
|Microentrepreneur Distributors: Rural||400|
|Microentrepreneur Distributors: Female||87|
|Microentrepreneur Distributors Earnings||$154,500|
|Microentrepreneur Distributors Earnings: Rural||$154,500|
|Microentrepreneur Distributors Earnings: Female||$33,604|
|Quality & Performance|
|Potable Water Produced||27,375,0006||27,375,0006|
|Greenhouse Gas Offset/Mitigated||6487||6487|
- Hand Held POU Charcoal Water Filter product lifetime of 1 year, based upon R&D requirements
- 25 candle power 5 hour Solar Lantern product lifetime of 3 year based upon R&D requirements
- Solar lantern use creates 0 Green House Gas Emissions
- Estimated use of 4 liters of kerosene per month by family utilizing kerosene lantern. Estimated 400 liters of kerosene burned contributes to 1 tonne of CO2 Equivalent. The lifetime of the solar lantern is designed to be 3 years, approximately that of a kerosene lantern. Thus the GHG emissions of the product replaced is estimated to be (4*12*3)/400= .36 tonnes per unit.
- Community is defined as a "Village" in Ghana or Kenya. Villages are concentrations of population in rural areas. These villages are named with a unique name and have distinguishing political leader.
- Client research indicates an average usage of 3 liters per day by users. Multiplying products sold, by 3 liters per day, by 365 day lifetime of the product to obtain Potable Water Produced.
- Estimation of .36 Tonnes of GHG mitigated by each lantern sold, see footnote on "GHG Emissions for Product Replaced". 1800 Units sold leads to 648 Tones of CO2 equivalents mitigated.