Katie Panella decided to join the Impact Weighted Accounts Initiative - a project to develop a standardized, monetized approach to measure companies’ positive and negative impacts - after becoming disillusioned with her career in impact investment.
“It felt like impact-washing had got to a point that it was starting to not mean anything. So I wanted to get to the heart of how we actually measure it,” says the Research Associate at Harvard Business School.
Senior money managers tell RI that, while the concept of investing for positive social or/and environmental impact alongside financial return is compelling, it’s hard to credibly advance without a general understanding of ‘impact alpha’ or how your ‘impact performance’ compares with others. And, as the impact investment market grows (it hit $502bn at the end of April 2019, according to the Global Impact Investing Network) so does that scrutiny.
Most fund managers measure and account for…