Impact Measurement Working Group: Measuring Impact
In our role as co-chair of the Impact Measurement Working Group of the Social Impact Investing Taskforce, established by the G8, we present Measuring Impact, a report highlighting key recommendations for the future of impact measurement.
The Impact Measurement Working Group (IMWG) was created in June 2013 as part of the Social Impact Investment Taskforce, established under the UK’s presidency of the G8. It aimed to develop measurement guidelines for impact investors as well as a vision for impact measurement in the years ahead. The IMWG was comprised of 29 thought leaders in impact investing and measurement, and was co-chaired by NPC’s Director of Development, Tris Lumley, and Luther Ragin Jr from the Global Impact Investing Network. The working group was supported by Monitor Deloitte, who conducted in-depth research and analysis, and drafted the report.
This new report, Measuring Impact, aligns with existing best practices, and includes seven practical guidelines for good impact measurement, as well as five case studies of impact investment organisations that have successfully put these guidelines to use. In writing the report, the Working Group went through a six-month consultative and research process, which included a review of over 60 industry publications and 45 interviews with experts and practitioners in impact measurement.
The Guidelines for Good Impact Practice include: setting goals, developing a framework and selecting metrics, collecting and storing data, validating data, analysing data, reporting data, and making data-driven investment management decisions.
The Impact Measurement Guidelines in Practice: Five Case Studies aim to help investors and investees translate the seven guidelines into an impact measurement approach that is right for them.
‘Impact measurement is critical to the future success of impact investing. These reports emphasize its central role, and crucially also give clear guidance to investors to put the theory into practice,’ said Tris Lumley, Co-Chair of the IMWG and Director of Development at NPC. ‘Using these guidelines will help ensure that the impact investing market grows, is accountable, and helps frontline organizations to learn and improve as well as accessing investment.’
This report sits alongside Social Impact Investment Taskforce’s recently published Impact Investment: The Invisible Heart of Markets, the culmination of a year-long international collaboration aimed at informing the evolution of the impact investing industry.