The GIIN’s latest State of the Market survey suggests impact investors might be a bit overoptimistic about their work – whether that's looking at issues like impact washing or impact performance. Does this risk undermining trust in the sector?
Impact assets under management keep growing but yearly investment volume drops as impact investors report economic headwinds – while they move towards 'safe' investments in mature companies and developed markets.
ANALYSIS: We Are Futures, which advertises itself as a ‘social impact agency’, spoke exclusively to Pioneers Post after being criticised by Greenpeace and others for creating educational resources paid for by Equinor.
Universal impact reporting standards seem to have fallen out of grace – and social enterprises are none the wiser on how to measure their impact effectively. But what if a new approach changed what felt like a chore into a welcome pick-me-up?
Measuring impact is expensive and can be seen as an unnecessary burden for impact investors and enterprises – but it may be the only antidote to impact-washing.
Concerns about virtue-signalling and purpose-washing are widespread – and sometimes justified – in the conference circuit. Big claims or good intentions are no longer enough: sponsors must do all they can to prove their commitment.
The more that impact measurement is relied on to shape investor decisions, the more worried we should be, says Dr Jess Daggers: the information gathered does not necessarily correspond with reality, and yet few take this risk into account.
Impact verification firm highlights impact investors from global sample which it identifies as best in class at impact management, going above and beyond the Impact Principles.
