What is ‘impact’? People in the sector realise the need for impact standards and are working towards a solution. One example is the Impact Management Project, a sector-wide initiative to produce frameworks for analysing impact. It involves 1,500 stakeholders from giant wealth managers like BlackRock and UBS, to foundations like Ford, to policy-makers. The eventual consensus was that we can break it down into five dimensions: 1. What (outcome to achieve) 2. Who (target group, and how are they underserved) 3. How Much (depth, duration and scale of the impact) 4. Contribution (new value that are we creating ) 5. Risk (risk of not achieving desired impact) There's a broad recognition within the financial markets of the importance of the work being done by this project to build an impact investing market that’s better-defined and accessible to the big pools of capital.
Read more here: https://www.forbes.com/sites/michelegiddens/2018/08/14/to-invest-for-impact-we-need-to-start-by-agreeing-what-impact-means/#413586bd6b76