The development of impact investing and the common dynamic for defining its scope are accompanied by a multitude of tools and methods that can leave the investor at a loss.
In this second part, we thus seek to provide clarification on the subject matter to be measured and on the set of measurement tools available by categorizing them into broad families: qualitative tools (surveys, bibliographic research, interviews) and quantitative tools (footprint, relative footprint, and alignment), placed at different points in the impact chain.
Impact investing is not a strict search for the “perfect” impact measure. Rather, it is about shifting investor practices and capital flows toward an economy with positive environmental and social impact. Thus, the most important aspect is that investors should be able to grasp these different measurement tools, with their limitations and constraints, in order to integrate them into their investment and support decisions.
I Care offers an overview of the tools available to help you measure impact and how to choose between them, with YWCA #12: Impact investing: how to measure impact? – Part II
This expert opinion, written in September 2021 by Emilie Marbot and Jérôme Pardieu, is part of a series of publications called “Yes We Care About” that is published by I Care, and which you can find in the “Expert Opinions” section by clicking here.