Social Proofing, Impact Measurement and InvestEU
The InvestEU regulation proposal specifies that financing and investment operations above a certain size shall be screened in three areas: environmental, climate and social impact. This means that large investments will have to prove that they are not harmful for people and the planet, and to show whether they have a positive societal impact if they want to receive support through the InvestEU programme.
But how will the European Commission check this? Social impact is not easily defined and measured, since its interpretation can differ across contexts, and mean different things to different people. Investors for impact know well how hard it is to measure and manage impact, given their extensive experience in providing high-risk patient capital to support the development of innovative solutions to pressing social problems. That’s why, through this policy brief, EVPA wants to share the past experiences of investors for impact on how to measure and manage impact, hoping to give insights and guidance that can help the process of setting up the social proofing system.