Valuing Impact

🌟 Important milestone in the world of impact valuation! The Capitals Coalition has launched three critical documents to advance impact valuation: 1️⃣ The Capitals Protocol: A framework on capitals assessment for decision making at a systems-level. 2️⃣ Governance for Valuation: Principles to embed governance and ensure valuations inform strategic decisions. 3️⃣ Beta Framework for Integrated Decision-Making: Practical, step-by-step guide to help organizations integrate financial, human, social and natural capitals into their decision-making process. 🗓 Capitals Coalition has opened these documents for public consultation until the 31st March 2025.  This is a unique opportunity to shape the future of impact valuation! At Valuing Impact, we’re inspired by these developments and encourage our peers to participate in the consultation and contribute their insights to refine these essential resources. 👉🏼 Link to documents and publication consultation: https://lnkd.in/eqEBSivB #ImpactValuation #CapitalsProtocol #GovernanceForValuation #ValuingImpact #SustainableBusiness

🌟 Unlocking the True Value of Impact 🌟 Benchmarking 200 SROIs results from the past few years. To answer the question, “What defines a good impact valuation result?" Our founder, Samuel Vionnet, analyzed 200 SROI results from Valuing Impact´s recent projects. This comprehensive assessment yielded key insights that could reshape how we view societal value creation. 📊 Key Findings: 1️⃣ Average SROI: For every dollar spent, $18 is delivered to society. This remarkable ratio underscores the potential for positive impact. 2️⃣ Organizational Differences: Start-ups and NGOs lead in efficiency, with start-ups showing the highest SROI. Interestingly, businesses exhibit a trade-off between financial and societal value creation, lowering their SROI potential. 3️⃣ Regional Insights: Lower-income regions yield higher SROI, highlighting the more excellent societal benefits in these areas. 4️⃣ Sectorial Variations: Human/social capital investments show lower SROI than natural capital ones. It may be due to the cost differential in those sectors. Health, gender, forestry, agriculture, and carbon credits show the highest potential. 5️⃣ The Power of Benchmarking: Standardized impact valuation methods are crucial for meaningful comparisons and informed decisions. We cannot conclude that one type of investment is better than the other; however, obtaining a benchmark is part of the process of developing powerful insights and designing better projects and investments. 🔍 Please find out more about our findings in our latest blog post: https://lnkd.in/eK5Jz4QR Join us in redefining how we measure and achieve impact. Your feedback and insights are invaluable to us! 💬 https://lnkd.in/d3vdrrum

📊 Translating complexity to inform decision-making 💼 We are taking some time at the start of the year to remember what Valuing Impact is all about! This company started by acknowledging the importance of measuring the impact of activities and understanding how organizations affect the world they inhabit. Through developing our valuation methodologies in partnership with clients and looking at specific sectors, Valuing Impact has created a robust bedrock of publicly available resources so that impact valuation can be more widely adopted by organizations worldwide. Valuing Impact adds value to our clients by: ▶️ Creating bespoke impact valuation tools is able to aid in aligning organizations' strategic objectives to the impact they want to make and communicate their impact to stakeholders. ▶️ Providing training and guidance on addressing and using the information for effective decision-making and impact planning. ▶️ Delivering tools and models to clients so they may continue to evaluate their impact. Check out our publications here: https://lnkd.in/d4PpgMdt. #impactvaluation, #drivingchange, #valueadd Samuel Vionnet, Jessica Hammer

🔍Super-charging due-diligence processes with impact valuation screening assessment🌍 Quantitative impact assessment has traditionally been considered impractical for investor due diligence due to data gaps and resource limitations. Valuing Impact is breaking old barriers by supporting SRF Impact in using the eQALY impact valuation method to be used in due diligence assessments and operationalized through an Excel tool with a user interface and dashboard. This dashboard provides both the absolute societal valuation of those companies and their societal return on investment or IMOIC (Impact Multiple On Invested Capital) We tested the impact valuation approach on three potential deals in the USA tackling issues such as: ▶️ Professional skills acquisition for immigrants. ▶️ Employee stock ownership. ▶️ Affordable real estate for underserved communities. This case study taught us valuable lessons, including: ▶️ It is possible and practical: Impact valuation helps effectively in making pre-investment decisions in a very short period of time (usually less than 1-2 weeks). ▶️ Comparing capabilities is key to avoiding human biases: Without quantitative impact data, comparing deals and understanding their absolute impact is impossible. ▶️ Understand risk and opportunities based on the same method: Impact valuation provides a deep understanding of the most critical impact drivers at the deal level and highlights risks and opportunities to structure a deal on its material impact. ▶️ Impact scale-up opportunities are established from the due diligence phase: Realizing an early-stage impact valuation allows us to establish a strong foundation to manage an investment and collect the right data actively. Read more about this project in our blog: https://lnkd.in/dXVtdNka Exciting times ahead as we pave the way for more inclusive and impactful investment strategies! 💼✨ #ImpactInvesting #DueDiligence #SocialImpact #FinancialInclusion Impact Valuation Hub, Samuel, Noelia napoleon

✨ This Quarter's newsletter is now Live! ✨ To help us ensure our newsletter stays the most relevant, we want to invite you to answer a short poll (which takes less than 30 seconds) to make sure we cover what is the most relevant for you. Thank for your help! https://lnkd.in/d3hAp5mp Don´t miss out, join our mailing list in our website! https://lnkd.in/dPyDzmTy Check out our updates this quarter: https://lnkd.in/dyX6zZNz

✨ We are proud to announce the publication of our first-ever Newsletter this Wednesday, December 18th! ✨ Subscribe to @Valuing Impact quarterly newsletter here: https://lnkd.in/dPyDzmTy We will share valuable content that @Valuing Impact has produced this quarter, a message from our founder, and a space to hear from our community. Don´t miss out, join our mailing list in our website! https://lnkd.in/dPyDzmTy

📌"Health & Safety investments can generate returns of 200–400%." (European Agency for Safety and Health at Work) At the People Sustainability Global Summit 2024, Valuing Impact participated in the panel "Accounting What Matters," moderated by Natalie Nicholles, alongside Adele Tharani, Madeleine Evans, and Tom McKenna. 💡We shared key insights from Nike's case study on applying the #ImpactValuation Framework to a Health & Safety program.: ✴️ NIKE generates $6.7 million in reputational value, highlighting its societal and business impact. ✴️ Evolving EHS KPIs could better capture broader value for society and business.  Capturing this value to society and business will open new opportunities to partner with stakeholders to further improve business value and provide valuable insight for organizational strategy. ✴️ #Impactvaluation enhances visibility into EHS contributions, revealing value and scale beyond traditional KPIs. Read more here: https://lnkd.in/dE4__iqV Thanks to the organizers! American Industrial Hygiene Association (AIHA), Capitals Coalition, @Global Solutions Inc, IIRSM, @Institute of Advanced Risk Management, L'Oréal, NEBOSH, Pinsent Masons, and Protex AI.

It was an honor to be part of the Building Bridges event in Geneva, Switzerland! Our live-streamed session, "A Solution-Oriented Approach: Impact Accounting within International Regulations," at the Geneva International Conference Centre featured pioneers of impact valuation and leaders from sustainable finance. The event concluded with audience engagement and valuable insights into the future of valuing impacts in the financial market. Many thanks to the speakers for the insightful conversation: - Sonja Haut, Novartis - Pavan Sukhdev, GIST Impact - Noelia (She/Her) Pacharotti, Valuing Impact - Dr. Dimitrij Euler, Value Balancing Alliance - Rui Oliveira, BFA - Banco de Fomento Angola - Chris Turpin, Greenings - Rachel Whittaker, Robeco - Dennis West, University of Oxford If you missed the live stream, watch the recording here: https://lnkd.in/gvEy_Wxt #ValueBalancingAlliance #BuildingBridges2024 #ImpactValuation #ImpactAccounting #DoubleMateriality #CSRD

🇨🇭We're at Building Bridges 2024 in Geneva this week!🇨🇭 Our Founder and CEO, Pavan Sukhdev, presented alongside pioneers of impact valuation and leaders from sustainable finance in a live-streamed panel titled 'A Solution-Oriented Approach: Impact Accounting within International Regulations'. The esteemed line-up included: - Sonja Haut, Novartis - Noelia (She/Her) Pacharotti, Valuing Impact - Dr. Dimitrij Euler, Value Balancing Alliance - Rui Oliveira, BFA - Banco de Fomento Angola - Margarita Pirovska, UN Principles for Responsible Investment (PRI) - Rachel Whittaker, Robeco Thank you to the Value Balancing Alliance for bringing this group together, and to Dennis West for your expert moderation. 👉 Watch the panel recording here: https://lnkd.in/gvEy_Wxt #ImpactValuation #SustainableFinance #BuildingBridges

Last Friday, we launched our Water, Sanitation, and Hygiene (WASH) Impact Valuation Framework with a webinar. Our discussion emphasized the importance of a holistic approach to evaluating WASH initiatives, considering factors beyond just output. As our experts noted, the WASH Impact Valuation Framework (WIVF) addresses a gap in existing evaluation methods for these initiatives, offering insights that were previously unavailable. Reflecting on our conversation, we’ve identified some key insights worth sharing again this week as a reminder of the valuable discussion we had with our experts: ▶️ “We saw the comparison from different programs in different countries, and that was interesting for us to see because some of the programs that we evaluated with this framework are essentially the same program across different countries, but the results were very different, and that is really what this framework was able to highlight. Of course, once you understand that, you can go to the impact pathway level to understand why it is different. The impact in a lower-developed country will always be more valuable than in a European country.” Philipp @ Reckitt ▶️ “For us, this piece is for that missing middle ground, where it allows us to make the case to companies to demonstrate the value of investing beyond the factory, so for us that’s a really critical component” Thérèse Rudebeck @ WaterAid ▶️ “The conversation today has completely changed. It is really tied to the business case, the resiliency of companies, and the impact of companies as related to WASH. The entry points for how companies enter the equation will be different. It might be the risk driver, it might be the opportunities driver, or reputational aspects around it. The valuation impact provides another aspect for those companies interested in understanding how their WASH investments manage both their own internal risk and also contribute toward societal benefits. This creates another entry point into those needs and identified areas and issues.” Mai-Lan @ WaterAid ▶️ “If you tell a shareholder or stakeholder that you delivered a certain volume, it´s very difficult to understand the value that has been provided to a community landscape or the business...because the same volume of water means very different things in different places. That is where this work really comes in.” Paul @ Bluerisk ▶️ “I think that the Impact Valuation Framework really does a great job of showing that crosswalk with the WASH benefits accounting framework. That really allows companies who are looking to go the next mile in terms of social, societal, and business valuation of their WASH projects.” Cheryl @ WASH4work Find out more about WIVF by downloading the full report: https://lnkd.in/d-TQycGt Valuing Impact Samuel Noelia #ImpactValuation #ImpactThinking #WASH #Water #Sanitation #Hygiene #WIVF