Monitoring the outcomes of our investments is essential to ensure that we are achieving our social mission and goals and can measure our impact. At the portfolio level, we carefully select financial institutions by integrating the assessment of environmental, social, and governance (ESG) risks in the investment decision-making process. However, we also recognize the importance of assessing whether our investees contribute to generating positive change in the lives of their clients and households.
To gather this feedback, we have partnered with 60 Decibels, a global, tech-enabled impact measurement company with a network of 750+ researchers in 50+ countries. Using a combination of surveys, 60 Decibels collects information directly from the end clients of ten of our investees located in different regions to understand the social impact of their products and services.
The survey covers five impact dimensions, including income and economic well-being, household financial stability, health and well-being, women’s empowerment, and community development. The company provides anonymity to borrowers by employing independent researchers to conduct the survey.
With the data gained from the surveys, we can identify areas for improvement and make data-driven decisions to enhance our impact. At the same time, those surveys provide an excellent opportunity for the management of our investees to learn more about the quality of their services and the impact they may have had on the lives of their end clients. Together, we can use this data to foster a more inclusive and equitable financial system that supports the success and well-being of all individuals, regardless of their background or circumstances.
The partnership with 60 decibels is a step towards our commitment to impact measurement and data-driven decision-making. While 60 Decibels offers a useful tool for impact measurement, it is important to note that measuring social impact is a complex and multifaceted process. Therefore, it is crucial to use a variety of methods and to consider different perspectives when evaluating social impact. We are aware that there may be some limitations to the ‘60 Decibels’ approach and are therefore open to exploring other methods of impact measurement in the future.
Thank you for being a part of our journey as we continue to move money to meaning.
Further Links:
Read 60 Decibels Press Release
Find out more about the Microfinance Index
Picture source: 60 Decibels