When we invest for impact, are we aligning our portfolios with our values, changing the world, or both?
This module focuses on Investor Contribution. In Module 9, we considered what outcomes stakeholders would have experienced in the absence of the company. In this module, we will consider what outcomes stakeholders would have experienced in the absence of the investor.
As with Enterprise Contribution, assessing Investor Contribution involves counterfactual analysis. This is another frontier topic in impact management for which best practices are still emerging. We will use the Investor Contribution strategies identified by the Impact Management Project as a starting point for thinking about how to build Investor Contribution into an impact rating. To keep track of the latest developments in this area, see ‘Additional Resources: Industry Research’.
Key Concepts - Investor-level Counterfactual Analysis, IMP Investor Contribution Strategies, Frontier Topics in Investor Contribution
Investor Contribution involves counterfactuals at the investor, enterprise, and stakeholder outcome levels. The strategy we introduced in Module 9 can help us think through this multi-layered analysis.
Building an Impact Rating - Investor Contribution
Investors can, but do not always, influence stakeholder outcomes through their capital allocation and engagement. The Investor Contribution dimension of an impact rating takes stock of whether or not an investment is likely to do so.