Impactable utilizes a comprehensive impact evaluation framework that simplifies sustainability analysis and fosters business growth.
Regardless of whether it's a fledgling startup or a long-standing corporation, assessing the impact is a pivotal endeavor for every organization, particularly for those involved in impact investing. Nonetheless, this task is far from simple or straightforward, with an evident evidence gap in impact investing.
The United Nations Sustainability Development Goals (UN SDGs) are widely recognized as significant impact metrics and are often used in sustainability analysis. Consisting of seventeen broad goals, they aim to address inequalities, promote sustainability, and foster economic growth.
Numerous stakeholders have committed to collaborating towards the SDGs, and these goals are widely acknowledged as an effective framework for driving positive social impact and garnering recognition on a global scale, especially for socially responsible organizations.
While the SDGs serve as a guideline, it does not provide a step-by-step blueprint for effective investment and impact strategies. Moreover, it does not offer a quantitative means of assessing impact, diminishing its utility in shaping long-term strategies.
In addition to the global targets of the SDGs, there is a plethora of privately developed impact assessment tools that specifically concentrate on the financial dimension of impact investment. Among these, the three most prevalent ones are IRIS+, IMP, and B certifications.
IRIS+, developed by The Global Impact Investing Network, is an assessment tool that employs a comprehensive 5-level approach to measure the what, who, cost, contribution, and risk of impact investments. However, it is important to note that while this tool serves to mitigate risk for investors, it does not equip organizations with the necessary tools to enhance their impact.
The Impact Management Project (IMP) was another such attempt to try and create a comprehensive set of impact analysis tools. IMP was developed by the UNDP and various philanthropic foundations, with a particular focus on non-financial metrics such as employability or social inclusion.
Although a useful tool, its comprehensiveness could have been improved, as most of the focus was on managing deployed impact solutions and less on fostering innovation. While the project was innovative, it had a short lifespan from 2016 to 2018.
The B certification system is perhaps one of the most comprehensive attempts to measure impact investments. Developed by B Lab, it uses a rigorous assessment process to measure both financial and non-financial impacts, and, if granted, confirms that the corporation is “committed to social and environmental performance.”
However, B certificates primarily serve as a symbolic gesture of intent rather than a measure of sustainable positive impact. Additionally, it is important to note that these certificates lack legal enforceability, leaving no mechanism in place to ensure ongoing commitment to sustainable practices after their issuance.
While each of these methods holds value, they either lack specificity or are too intricate to be universally applied. Thus, it is evident that an alternative approach will be required.
Leveraging established industry practices, Impactable goes beyond assessing impact potential—It empowers companies to effectively pursue their impact goals by providing a comprehensive solution. This is pivotal for socially responsible organizations looking to conduct thorough sustainability analysis
In understanding the Impactable framework, there are three vital aspects that must be kept in mind.
Attribution encompasses a range of metrics that serve to quantify a company’s impact. These metrics empower organizations to gauge the effectiveness of their programs and inform resource allocation for enhanced efficiency.
Proper attribution is crucial in order to outline the necessary steps for creating a concrete plan that can help achieve new impact goals efficiently and effectively.
Definition refers to the delineation of interventions or activities that have contributed to a desired outcome in the social or environmental realm. This clarifies what has proven successful for the organization and what hasn’t, offering valuable insights, offering valuable insights for those seeking to address the evidence gap in impact investing.
Valuation centers around understanding how the efforts of a funder have contributed to the observed outcomes, instead of solely assigning outcomes to a specific element of the company.
This facilitates the connection between impact data and financial data, making it highly valuable to stakeholders.
Measuring impact in the early stages can pose a challenge for many companies. With limited data and often unorganized information to work with, gaining insights becomes a daunting task.
Impactable offers a tailored solution, recognizing that every company is unique. The dedicated Impactable team conducts an in-depth analysis, presenting both qualitative and quantitative data in a user-friendly manner, making it one of the most streamlined impact assessment tools available.
After reviewing this report, Impactable offers comprehensive assistance to empower companies in pursuing their objectives and achieving sustainable impact. The ultimate aim is scalability; thus, an action plan is provided to facilitate the successful integration of Impactable’s feedback into their operations.
Find out how Impactable can help your organization scale.
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