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Navigating the Complex World of Impact Metrics 

Impact metrics – the term can be daunting. As someone who has had the privilege of witnessing companies and organisations work tirelessly to convey their impact to investors, I know how perplexing this area can be. The impact investing market is booming; according to the Global Impact Investing Network (GIIN), it has skyrocketed from $502 billion in 2019 to $715 billion in 2020. But measuring these impact metrics? That’s a whole other challenge.

However, nothing worth doing is ever easy. With collaboration, commitment, and the right frameworks, we can revolutionise how we measure and communicate impact.

In my discussions with fellow investors, I often underline that impact metrics aren’t merely financial metrics under a different guise. They shed light on the non-financial, social, and environmental contributions of an organisation. It’s about the legacy we leave and the positive change we instigate. Integrated reporting encapsulates this by painting a comprehensive picture that goes beyond mere financials.

Spotlight: Enygma Ventures in Action

Let’s take a real-life example. We recently collaborated with Palladium, a leader in impact solutions, to publish an impact report of this nature. This report epitomises how social impacts can be measured effectively and features concrete data, including inputs, outputs, and outcomes from our investments. Click here for a hands-on look at impact reporting in action.

Enygma’s Theory of Change

Take a look at our Theory of Change outlined in the report:

– Input: Enygma Ventures invests in promising women-led businesses that can significantly scale and contribute financially and socially to their nation.

– Output: Capital helps each business flourish, benefiting all stakeholders – investors, employees, customers, local communities.

– Outcomes: This, in turn, fortifies a nation’s ecosystem, culminating in social impact and economic progress.

This is the crux – the very essence of impact investing. It’s about incorporating impact metrics into investment decisions with a clear sense of purpose.

Communicating impact is a delicate balance between art and science. From my personal experience, embracing transparent reporting frameworks, leveraging technology, engaging stakeholders, and integrating reporting are not just strategies – they are pledges to make a positive change.

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