Measuring the "impact" in impact investing

Reading List: A Primer on Impact Measurement
Recommended by: Lars Boggild, Vancity Community Investment Bank

"One of the best guides I’ve found that looks at different measurement tools across the investment lifecycle is “Measuring the ‘impact’ in impact investing”. While providing detailed examples of how various leading organizations measure impact, some of the big picture findings are:

  • Impact measurement has a role from estimating impact as you are selecting from different investment opportunities, planning impact in your specific investment strategy, monitoring investments to course correct and improve operations, and as an evaluative tool for accountability and proof.
  • Some of the most foundational tools are to create a theory of change, which is a logical model of how different inputs are used to produce intended outputs and outcomes, and trying to create mission alignment by using criteria or scorecards in the rating of investments prior to investment.
  • All impact measurement has measurement risk and error, and as investments grow larger and/or impact is a higher priority, there are increasing standards of evidence you might use to be confident that impact has occurred."

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