Measuring Impact in Impact Investing: an Analysis of the Predominant Strength That is Also Its Greatest Weakness

This article critically analyses impact measurement in impact investing, arguing that its predominant strength—the focus on impact—is also its greatest weakness due to inherent complexities and inconsistencies. It examines various methodologies for assessing social returns and discusses the challenges of standardization and comparability across diverse impact investments. The authors highlight how the elusive nature of robust impact measurement can hinder the sector’s growth and credibility, calling for more rigorous and transparent approaches.