Impact assessment methodologies

: the perception of impact investors towards measuring social impact

Abstract

The purpose of this master thesis is to understand how impact investors can most effectively measure social impact. To achieve the desired value and to ensure impact, investors are tackling the world’s most pressing social problem through impact investing. According to the literature, impact investment is defined as investments into organizations with the intention to generate social impact alongside a financial return (GIIN, 2022). With such purpose in mind, the research first builds on existing literature. After reviewing and clarifying the main characteristics of social enterprises, social innovation, and impact assessment, a presentation of different impact assessment methodologies will follow. A comparison of the most known frameworks of the impact investment industry will be highlighted in more detail.Furthermore, the thesis builds on qualitative data by questioning impact investors’ perceptionsof impact assessment methodologies. Therefore, the perception of impact assessment tools is conducted, how they currently measure the social value, and what is missing in this field. Coherent with the literature, the research highlights the key challenges impact ventures are facing. Particularly when it comes to the definition of social impact, efficient data collection, and the perception of existing impact measurement methodologies. The main findings of the thematic analysis of 13 interviewed impact investors present the need for reliable, understandable, transparent, uniform, and ecosystem-wide standardized impact assessment methodologies.

Date of Award	23 Jan 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	João Cotter Salvado (Supervisor)