Dear friends and colleagues*
We have launched our new website for 2016 …
Money, finance and capital markets are social constructs that have ostensibly evolved for societal purpose. Yet paradoxically finance and enterprises that intentionally target social returns need to be prefixed with the word ‘social’ (sometimes ‘impact’, sometimes ‘social impact’) to make it clear that they have an explicit social purpose. Measuring social impact, and by extension environmental impact, is an attempt at quantifying the societal relevance of all this activity – and shining a light on what might be otherwise described by economists as positive or negative externalities. But measuring social impact directly is arguably one of the most difficult ways of universally assessing social usefulness. This is because not everything that is important can be easily measured, and not everything that can be measured can be easily compared with other important things because they often often get measured in different ways.
Great article by my co-founder Rupert Evenett explaining why we’re passionate about creating EngagedX.
Data unlocks capital.
Data sets the risk and return expectations for providers of capital and thus provides the basis on which the provision of capital for social investment and impact investing can be scaled. Data gives a baseline for social investment and enables pricing for risk and return. Data shows how social investment and impact investing fits into modern portfolio construction compared with other investments and investment classes. Data signposts to front line organisations what sort of capital investments are available and on what terms. Data benchmarks success and investment readiness in social investment and impact investing – providing case studies and the aggregated investment characteristics of success. This helps new and existing investors to understand the drivers of social investment performance. Data identifies social investment gaps and opportunities – making the market more efficient and maximising public benefit. Data maps social investment. Data supports local as well as national…
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