UCL School of Management Professor Paolo Taticchi, OMRI and Research Assistants Chiara Andreoli and Chiara Cremasco have co-authored a report addressing a pressing concern within impact investing. The report delves into the pervasive issue of information and power imbalances that often impede the effectiveness of impact projects.
One issue with impact investing is the often exclusive arrangements between stakeholders involved in the impact measurement and management (IMM) processes. This creates a significant imbalance of information and power between the stakeholders involved (e.g., investors, investee companies, final beneficiaries), which negatively affects the dynamics of impact projects. For this reason, several voices in the impact investing ecosystem are increasingly asking for the design of a more inclusive IMM decision-making process.
These guidelines present a framework of multi-stakeholder decision-making for measuring and managing impact, with the aim of adopting a systemic approach. This updated version of the guidelines incorporates a collection of case studies that provide practical insights into emerging leading practices in impact measurement and management. It also highlights existing and effective frameworks, offering practitioners guidance towards proven and effective tools.
The evolution of IMmPACT guidelines stems from comprehensive case studies, emphasising the need for transparent frameworks in impact measurement. Challenges like greenwashing highlight the necessity for authenticity in impact-driven investments, complicating the definition of ‘impact’. This project advocates for robust methodologies and participatory approaches to enhance impact investing practices. Through diverse case studies, it emphasises both quantitative and qualitative aspects of impact measurement. By spotlighting existing frameworks, the project aims to address pressing issues and foster clarity in impact investing initiatives. Ultimately, it strives to contribute to ethical investment practices and ensure credibility in the field. The subsequent sections guide practitioners towards established tools, recognising the abundance of validated methodologies in impact investing.
View report here.
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