UCL School of Management

27 July 2023

Impact Investing: Guidelines for Participatory Impact Measurement and Management

UCL School of Management Professor Paolo Taticchi, OMRI and Research Assistants Chiara Andreoli and Chiara Cremasco have co-authored a report that tackles a critical issue in impact investing: the information and power imbalances that hinder the dynamics of impact projects. Their report provides guidelines for participatory impact measurement and management, aiming to foster fairness, inclusivity, and transparency.

Achieving a balance of power and information among impact investing stakeholders, including investors, investees, and final beneficiaries, is essential for promoting equitable decision-making processes. By avoiding excessive control or information asymmetry, diverse perspectives can be considered, leading to more equitable outcomes and enabling effective and sustainable impact. However, current collaboration between stakeholders is often hindered by divergent goals and unequal information distribution, resulting in certain stakeholders exerting greater influence over decision-making processes.

With these Guidelines, developed thanks to continuous interactions with influential impact investing practitioners, the authors propose a framework for multistakeholder decision-making, which highlights the importance of understanding interactions between stakeholders and various phases of impact investments. By adopting this framework, stakeholders can accurately measure their impact, engage in structured decision-making, and identify best practices for efficient impact creation.

The publication of this report was made possible through the generous contribution of the John Ryder Memorial Trust.

View the report

Last updated Thursday, 27 July 2023