Ask the Expert Session#2: Mike McCreless

[Francesca Suarez]

Hello!

Currently a lot of the “impact” reports out there focus mainly on outputs and, sometimes, outcomes. How do you work with your clients to ensure that they report on impact? Do you have examples of impact reports that focus largely on the impact as opposed to the outputs and outcomes?

Thank you!

[Minhaz Anwar]

Hello! In typical impact investment conversations we tend to look at how impact enterprises are addressing vulnerable populations but has it not been traditionally the stronghold of the NGOs and INGOs? If so, why do we just push startups and entrepreneurs?

[Joseph Leung]

Dear Mike, thank you for taking time to answer our questions. Here are my main concern on impact measurement:

– We’re managing a fund of funds, of which the underlying funds may invest into different areas of impacts (i.e. new energy, healthcare, education, agriculture, financial inclusion, climate change). The metrics we agree with the underlying funds are various and case by case basic for the each underlying portfolio company. When we adding up all the metrics together, we found that the aggregate impact is not much as not many metrics are equal (say metric related to healthcare does not add up to the metric of agriculture) . Do you have any recommendation of the impact measurement for fund of funds setting like us? (with diverse industries). Thank you!

[Martina Mok]

Hi Mike, in your experience, what are common challenges for family offices in progressing IMM practices? I’m curious especially about Asian family offices, but also other regions if you are more familiar there. Which stakeholders are best placed to guide and train family office managers in advancing IMM toward strategic portfolios? Thanks!

[Luca Saccani]

Hi Mike,

Thanks for taking the time to hold this session.

I have one question. We know that impact measurement practices are to a certain extent subjective to the mission an impact investors want to pursue, which makes it difficult to compare results across different investors. Are you aware of any approaches or examples where different investors were able to compare their impact results?

Best,

Luca

[Falguni Vora]

Hi Mike,

Thank you for taking the time to respond to our questions. SROI is a tool that is being used for impact measurement, especially by corporate donors. However, in my experience, there is some subjectivity in how the proxy values are assigned to various qualitative metrics. I am wondering if there are standards for these proxy values, and if yes, where can I find these? If not, how does one ensure that the proxy values assigned do not lead to undermining or over-exaggerating of impact.

[Priyanka Sahoo]

Hi Mike,

My question is regarding the standardisation of impact metrics. Currently, there are a number of parameters and standards to measure impact. Each has its own set of criteria to define ‘impact’. However, in traditional financing measures, the metrics are pretty standard. What should be the industries and the government’s approach in going about this? Should an inter-government body come out with a broadly accepted standard for investors and countries to follow?

[Genevieve Heng]

Hi Mike

My big challenge is collecting data to measure impact, especially in countries where it is difficult to get the data. Any tips you can share on a pragmatic approach to this issue. Thanks

[Ha Thi Hoa]

Hi Mike,

Thank for the Q&A session. My question are

1. Where and How to start set metrics to measure impacts? Could you give an example for setting metric for a project which promote strong governance at organization?

2. What should we do when stakeholders don’t get buy-in with the metrics we set?

Thanks Mike

[Dinda Hervi]

Hi Mike,

There are so many impact frameworks available in the industry, what would you suggest for a small organization to start their IMM practices and using which framework? Thank you

[Joseph Leung]

Hi Mike,

I have a follow-up question on my previous one. As we also invest in early stage start-up companies which target to create impact. It’s difficult to quantify their impact as most of their products/services are early stage. If they estimate the impact (say they can produce 10,000 devices in the 3th year (i.e. in year 2025) so that to save 50,000 hours of work or 50,000 tons of toxic material). Is there any limitation on such forecast for disclosure? Anything we need to take special attention when we present an “estimate” impact? (or we’d rather not disclosing it). Thank you!

[Nick Westra]

Hi Mike. Thank you for your time and looking forward to your take on this important topic.

<font face=”inherit”>In addition to the several stellar points already posted here, I would like to ask—do you have any suggestion for </font>objectively<font face=”inherit”> comparing a diverse set of impact metrics assigned within a portfolio of social enterprises that may exist in quite different sectors? </font>

Thanks!

[Wayne Lin]

Hi Mark,

Thank you for sharing.

This is Wayne from Taiwan Impact Investing Association. I was wondering that how to choose the suitable IMM methodology or metrics to do impact measurement, and combine the IMM results to the financial performance?

In addition, I was also wondering that how to validate impact-alpha, the positive financial result from impact performance.

[Wayne Lin]

Hi Mike,

Thank you for sharing.

This is Wayne from Taiwan Impact Investing Association. I was wondering that how to choose the suitable IMM methodology or metrics to do impact measurement, and combine the IMM results to the financial performance?

In addition, I was also wondering that how to validate impact-alpha, the positive financial result from impact performance.