Impact measurement is more than just a numbers game
Measuring impact is not just about numbers. It is about the real change created in people's lives and in the environment.
By measuring, and understanding, the impacts your organisation has, you pave the way for a more sustainable future.
The impact we can create goes well beyond a profitable balance sheet. It extends to the positive social, cultural, and environmental contributions we can make. Every business, regardless of its size, structure, or industry focus should invest in “impact measurement” to understand, quantify and enhance the meaningful changes they bring about.
Impact measurement enables us to be more aware of unintended or unforeseen consequences, making it an invaluable tool in the quest for more responsible and ethical business practices.
At Ākina, a leading impact consultancy, our primary focus is on measuring the "S" in ESG (environmental, social and governance) factors. What that means for climate governance, for example, is that while we may not directly measure carbon emissions, we do measure the environmental impact of emissions, often within the context of social initiatives.
Our clients who embrace integrated reporting understand the significance of embedding impact measurement into their strategy. Our collaboration with the Westpac NZ Government Innovation Fund (WGIF) shows this in action. WGIF was established eight years ago with a total investment of $10 million.
Ākina guided the fund in understanding its distinct position and established metrics in line with industry standards and public expectations. Impact measurement emphasised the qualitative nature of the fund's impact, focusing on stories, experiences, and systemic impacts rather than solely quantitative metrics.
Governance structures, including an independent board and working groups, were highlighted to show the involvement of government and banking representatives in decision making.
Boards and businesses are starting to embrace impact measurement, but there is much work to be done to amplify this further.
Corporates often have community investment and social sustainability initiatives underway, and impact measurement can help determine which initiatives are most effective. Used as part of an impact framework, this can help guide future decision making across a range of activities.
A comprehensive impact measurement framework can also be aligned to internationally recognised impact standards, while also including qualitatively measured, bottom-up indicators that show where the true value lies for stakeholders.
Ākina uses international frameworks such as Social Value International and Impact Frontiers, which guides our own practice and is adaptable to the NZ market.
Impact measurement goes beyond mere accounting and auditing, delving into the realms of understanding what would have happened anyway, and what happened as a direct result of specific endeavours.
Where can we apply impact measurement? The answer is everywhere. From large corporations to small and medium-sized enterprises (SMEs), not-forprofits and the public sector. This is a versatile tool that can guide our collective journey towards a more equitable and sustainable future.
It helps to identify positive social changes, such as feeling more connected to nature, more positive, and more engaged with our communities.
One of the most striking aspects of impact measurement is its potential to help boards understand if their strategy is delivering on the purpose of the organisations they govern.
In today's world, where customers and investors alike demand transparency and ethical accountability, impact measurement is not just a tool; it is a compass which can guide boards towards a more meaningful and purpose-driven strategy.
It transcends the boundaries of profit and loss, connecting businesses with the communities they serve and making real and enduring change for people and for the environment.
Ākina is a Foundation Partner of Chapter Zero New Zealand.
