There is Much More Than Management in Measuring Impact

There is a promise in the impact investing history: creating impact. To keep that, though, a theory of change wouldn’t suffice. Measuring would be a fundamental part of the equation.

Measuring impact is not just a question of management, that is, to a better measure it possibly corresponds a more informed decision making. Measuring impact is also a matter of transparency and is pivotal for the growth of the industry.

Indeed, more than 9 in 10 impact investors cite impact measurement and management as a key process for enhancing business value. However, “investors continue to hunger for better impact performance comparability,” Amit Bouri, Co-Founder and CEO of the Global Impact Investor Network, reckons.

Impact investors have become more sophisticated over time, GIIN’s The State of Impact Measurement and Management Practice second edition points out, and have passed from building consensus around the need of measuring and managing to integrate different metrics.

“It would […] simplify a wide range of considerations that impact investors regularly face, from investment screening and selection to investment management,” Bouri explains.

Indeed, since 2017, impact investors have increased their use of nearly every impact measurement tool and framework referenced underlining both the increased fragmentation in practices and investors’ demand for rigorous resources and processes.

Still, investors are beginning to coalesce around certain tools. For example, among those the most commonly used one there are the United Nations Sustainable Development Goals which have been used by 72% of impact investors gaining traction among investors and other stakeholders over the past years.

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