Does impact need to be measurable to count as impact?

  1. The definition is based on a change that follows an investment. For example: After an investment in a solar energy company, the company expands its production capacity, thus producing more solar panels.
  2. The definition underscores that the change needs to be caused by the investment. For example: Without the investment, the production capacity of the company would have remained the same.

Does impact need to be intentional and measurable?

Investors influence the word in many ways. While some impacts are positive others are negative. Not all of these impacts may be intentional. And only a fraction can be properly measured.

If you claim impact, you need to show impact

Investor impact vs. company impact

Investor impact is the change in company impact, caused by investment activities (source: Heeb, F. und Kölbel, J. F., 2020, The Investor’s Guide to Impact.)

The problem of measuring investor impact

Honest impact claims

A narrow focus on measurable impact may distract from the big picture

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