Measurable and Actionable Metrics to Attract Social Impact Investors

Impact investors may not have a defined expectation on the response they should receive but they will surely ask about impact measurement. Some impact investors will go as far as asking you to track impact and report on the progress alongside financial details. Founders who are armed with analytics and clear data have a better chance of attracting impact investors and differentiating themselves. The goal of your corporation should be to become successful amid a competitive and hostile business environment. Environmental and social impact can attract loyal clients and customers. Ultimately, a corporation that is mindful of society will flourish. Companies that are keen on impact measurement raise external funding more easily. ImpactableX has a record of helping many companies to access funding within a short period.

There are various ways an organization can position itself for success in the market. One of them is aligning its metrics with global standards. The widely accepted global standards include IMP (Impact Management Projects), United Nations SDGs (Sustainable Development Goals), and IRIS+. The taxonomies provide metrics to understand the units that everyone ought to be measuring and the goals that we should be pursuing. Institutions should do the best they can to align with the global standards so that their analytics and data can become compatible with other frameworks that stakeholders reference. The metrics of measurement don’t have to be derived from the standards. It is not necessarily expedient to measure units that offer meaningless data.

It is fundamental to define the metrics to ensure they are measurable and meaningful. The metrics ought to align well with the global standards. However, it is not a requirement. Focus is required to attract social impact investing. You have to identify a few metrics to underscore the value proposition of your institution. Although investors don’t expect monumental returns, your innovations should be promising. Measure the units that matter. It is important to articulate the extent to which impact solves problems just as we articulate time and cost savings.