Measuring Impact

In recent years, impact investing has captured the attention of leaders in finance, philanthropy, business, and government seeking innovative ways to address some of society’s most pressing issues. It harnesses the efficiency and discipline of private capital markets to address the root causes of social and environmental problems.

In a world where this vision for a robust impact measurement convention has become a reality, the value that is generated through impact measurement is clear and undisputed. Every stakeholder with an interest in contributing to societal change will have deployed – or will have facilitated the deployment of – capital toward impact. Meanwhile, the integrity of the impact investing market will be well understood, signalling the promise for a new level of accountability and transparency in global capital markets.

This report has been produced in 2014 by the Social Impact Investment Taskforce, led by Sir Ronald Cohen and established under the UK’s presidency of the G8. Impact measurement is central to the practice of impact investing and vital to the growth of the impact investing market. Measurement demonstrates the social impact that these investments are having, which further legitimizes the practice. Without it, effective impact investing could not occur.