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Impact measurement, management and reporting

Introduction

Impact measurement, management and reporting are core skills for those working in or with impact investment. Impact investments are made with an intent to achieve positive material, additional and experienced change. Impact measurement tells us if we are achieving that change. Impact management requires effective measurement and monitoring, and it is important to know what to expect in terms of reporting from investees as well as to know how to report to investors. Please bear in mind that there is no single good way to measure impact – there are many helpful approaches, processes and frameworks, but no silver bullet. It is important to measure impact well, but almost impossible to measure it perfectly. Aim for good.

How to use these resources

This section covers three key skills areas: measurement, management and reporting. It is best to read this section once you have a good grasp of the foundational knowledge from the introductory section and the sections on the purpose of impact investing and the impact investing market. It also makes sense to read this section first before moving onto the sections on thesis and strategy, sourcing and due diligence. As noted elsewhere on this page, people might speak with confidence on impact measurement, but while everyone agrees on the importance of impact measurement, there is less agreement on how it should be done. Reading across the different sources listed here will give you a clear idea of what good practice looks like.

Resources in this module

Introduction to section
Frameworks, standards, tools and data sets
Breadth, depth and duration of impact
Logic frameworks (Theories of Change) – inputs, outputs, outcomes, impact
Targets
Risk (impact and financial) and its mitigation
Impact data, data providers, approaches to gathering and using data
Impact monitoring (at investment and portfolio level) and its alignment to the strategy
Good practice reporting to investors
Good practice reporting for investors

Glossary of terms

We have put together a glossary of terms for impact investing

Visit our glossary

Filter resources by level:

Introduction to section

Getting started with impact measurement & management

Global Impact Investing Network

Reading time: 5 minutes

 This webpage has a clear definition of impact measurement and management (IMM) in one sentence.   It goes on to outline in general terms four suggested steps for an investor to follow when setting up an impact measurement process. This is followed by a library of Global Impact Investing Network resources. 

What the reviewer found helpful:
“I liked the clarity in the definition of impact measurement and management.”

Chris Cullen

Introductory
Impact investing handbook (p 29)

Rockefeller Philanthropy Advisors

Reading time: 2 minutes

Basic overview of the importance of measurement of impact created as an addition to measurement of financial outcomes as done with generalist investing  Sets the scene for follow on reading in Chapter 5

What the reviewer found helpful:
“Short snippet on measurement as a key component of impact investing alongside intention”

Chloe Mallo

Introductory

Frameworks, standards, tools and data sets

There are no Introductory resources for this topic

Breadth, depth and duration of impact

How Much? Scale, depth and duration

Impact Management Project

Reading time: 15 minutes

This webpage explains one of the key dimensions of impact measurement – “how much” impact is occurring. Significance of impact can be measured in scale (number of people); depth (impact per person) and duration (length of time impact lasts.)

What the reviewer found helpful:
“A brilliant resource that formalises some intuitive but critical concepts that it is essential to grasp before setting out to measure impact.”

Chris Cullen

Introductory

Logic frameworks (Theories of Change) – inputs, outputs, outcomes, impact

Theory of Change: Steering tool for effective impact investing

Triodos Investment Management –

Reading time: 5 minutes

This article explains the 5 step Theory of Change model which illustrates how and why a desired change or outcome is expected to realise. The 5 step framework (Mission, Vision, Objectives, Activities, Monitor) streamlines the process for investors to translate their impact intentions into real impact results. Also included is a link to a 30-minute webinar discussing the Theory of Change in depth.

What the reviewer found helpful:
“This article is concise and to the point but with much more detail provided in the webinar if required.”

Rebecca Lagan

Introductory
Executive Summary: Measuring the impact in impact investing

Harvard Business School

Reading time: 15 minutes

The logic model provides an easy-to-understand framework for outlining a theory of change and measuring the outcomes and impact of a particular project/impact investment. Highlights how a logic model can be used in practice, which level of the logic model is most appropriate for different results as well as the advantages and challenges of the logic model more broadly.

What the reviewer found helpful:
“The use of example case studies really brings the academic theory to life”

Chloe Mallo

Introductory

Targets

There are no Introductory resources for this topic

Risk (impact and financial) and its mitigation

There are no Introductory resources for this topic

Impact data, data providers, approaches to gathering and using data

There are no Introductory resources for this topic

Impact monitoring (at investment and portfolio level) and its alignment to the strategy

Monitoring and evaluation for impact investing

Better Evaluation

Reading time: 15 minutes

Summary of some basic approaches to impact monitoring Define/Frame/Describe/Understand/Report

What the reviewer found helpful:
“A good starting point. Without high quality monitoring and evaluation impact cannot be demonstrated.”

Chris Cullen

Introductory

Good practice reporting to investors

Guide for impact investing fund managers: Post-investment management

Global Impact Investing Network

Reading time: 10 minutes

Part of a larger guide for impact investment fund managers. How a fund should manage their investees and their investor reporting after investing. Advice on the continuing support and technical assistance a fund needs to provide the investees with- how to ‘add value’.

What the reviewer found helpful:
“Particularly enjoyed the ‘Adding Value’ section.”

Chris Cullen

Introductory
Impact reporting must haves

Social Value UK

Reading time: 5 minutes

Quick and easy to understand how-to-guide on analysing an impact report and what to look for.

What the reviewer found helpful:
“Bitesize “how to” for reading an impact report”
Chloe Mallo

Introductory
The Good Investor – Reporting principle (pp. 61-64)

Investing for Good

Reading time: 10 minutes

The section on Impact Investor Reporting provides some guidelines for best practice. 6 principles are introduced: clarity, accessibility, transparency, accountability, verifiability and proportionality.

What the reviewer found helpful:
“The wider 94 page report describes in simple terms how to build a measurement process and the resources page at the ends contains useful links for those wishing to further their reading”
Eilidh Anderson

Introductory

Good practice reporting for investors

There are no Introductory resources for this topic