A Better Way to Measure Social Impact

All impact investors report the financial returns from their funds and investments, and many provide metrics on intended social outcomes, such as numbers of individuals served, or quality jobs created. But investors do not supply metrics about their impacts on individuals’ and families’ lives, and until they do, social impact reporting is unlikely to approach the level of robustness associated with financial and environmental reporting. The authors of this article describe how Bayer’s Crop Science division has developed reliable stakeholder reported measures of the social impact of its inclusive growth projects based on an approach first pioneered in the healthcare sector.