How do you measure and manage impact?

October 22, 2024

Last week the Netherlands Advisory Board on Impact Investing (NAB) organised a seminar on IMM: impact measurement & management. Since StartGreen each year publishes an extensive Impact Report NAB asked us to come and explain how we measure and report the impact of our more than 125 portfolio companies.

Knowledge sharing

Our Impact Lead Suzanne Groen and Managing Partner Laura Rooseboom shared their knowledge and experience of measuring and recording impact that afternoon. The seminar, hosted by Triodos Investment Management, was attended by more than 60 interested parties, including fund and asset managers, but also by non-financial parties, such as reporting platformsNot only did they receive a crash course in IMM, they were also able to ask all their questions and dilemmas about impact investing and IMM strategies.

Impact in practice

Willem Vosmer of Steward Redqueen talked about the basics of IMM application. He outlined the theoretical background using 5 building blocks that together form the impact framework:

• Strategy
• Procedure
• Governance
• Methods & tools
• Reporting

Experts from Triodos and StartGreen illustrated each step with practical examples.

Challenges and examples

That is why Suzanne told us in step 3 about our sustainability policy: how we at StartGreen determine our KPIs based on the SDGs (the UN Sustainable Development Goals).

She also explained how we strike the right balance between the different interests of all stakeholders: on the one hand, the Impact Lead wants reliable and measurable impact data. After all, good IMM is crucial for sound decision-making, accountability and transparent communication. To achieve this, she must convince portfolio companies to provide impact figures (usually not their highest priority). Impact measurement also creates value for them: it helps them to distinguish themselves from the competition.

Nikkie Yamba-Pelzer and Adam Kybird from Triodos Investment Management explained, among other things, how a Theory of Change can provide guidance as a framework for measuring and managing impact.

Suzanne Groen, Impact Lead StartGreen Capital:

'It was an interesting afternoon for all involved, actively involving the attendees and creating a lively debate on IMM. In this way, it became an interactive, knowledge-sharing session, where we could exchange best practices and really learn from each other.'

Did you miss the seminar? On the website of the NAB you will find the presentation and a summary.