Impact Investing. How is the impact measured?

Master's Thesis from the year 2019 in the subject Economics - Finance, Lucerne University of Applied Sciences and Arts, language: English, abstract: This work critically evaluates the roles and responsibilities associated with impact measurement. In order to examine the current status of impact measurement practices and reporting techniques in impact investing, the author explores the perceptions and views of impact investing by investors and asset managers and provides strategies and recommendations on how the measurement and reporting process can be improved. In the process the work explores strains around the coverage width, objectivity, participation, flexibility, rigour and attribution of impact by evaluating two investment enterprises.

Impact investments have gained much prominence over the course of the past few years. In relation to other diverse forms of investments, the most noticeable aspect pertaining to impact investing is its attention on measuring the social and environmental returns that it creates. As an outcome, substantial efforts have been initiated to build measurement systems that are effective. However, there is some confusion regarding the concept of non-financial return, the impact and its evaluation within practice.