Latest news with #SorensonImpactInstitute
Forbes
28-05-2025
- Business
- Forbes
Redefining Capital For Good: Katie Macc On What It Means To Lead In Impact
Katie Macc, CEO of the Sorenson Impact Institute, was honored by Utah Business as one of '30 Women ... More to Watch' in 2025. As CEO of Sorenson Impact Institute, Katie Macc draws on her experience in multiple finance sectors, including microfinance, fintech, and impact investing across the globe. These perspectives help shape how she and her colleagues at the Institute approach their multidisciplinary work in impact investing. 'The biggest difference impact investing has made, I believe, is in changing hearts and minds. Most of us in finance and business weren't taught that there is another way—a better way—to do business, to do good, and to build a world in which we all want to live. Impact investing has consistently demonstrated the ability to do all of those things,' says Macc, who was recently honored by Utah Business as one of 30 Women to Watch. At the Institute, Macc and her colleagues focus their work with partners around the world on moving capital toward solutions to some of our biggest challenges. She points to the Institute's work and connections with public and private organizations as key reasons for Utah's status as an innovator in the impact field. By collaborating with students, business leaders, entrepreneurs, and other organizations, the Institute contributes to the growth of the impact investing sector and its contributions to a better future. Macc sees promise to expand the impact investing field by deepening its role in public markets, creating new opportunities for financial performance and stakeholder impact. To help drive this growth, the Institute is currently working on a number of strategic projects, including a multi-year Nature-based Solutions (NbS) initiative. 'There's a real opportunity in investing in nature,' she says. 'The financing gap in that sector is massive, and we believe it's a sector ripe for innovative financing solutions.' In this Q&A, Macc discusses these initiatives and other opportunities she sees for the Sorenson Impact Institute and the impact investing sector as a whole. You've been honored by Utah Business as one of '30 Women to Watch' in 2025. What does this accomplishment mean to you? Receiving this honor is, in many ways, reflective of the key role that impact investing has had in the state of Utah. It's true, Utah is not necessarily at the top of everyone's list as a hub for impact investing—until you dig a little deeper. The state's economic success and business-friendly environment for entrepreneurs and companies of all sizes are relatively well-known. But the reality is the state has been at the forefront of impact investing in a number of ways—from public-private partnerships that were well ahead of the curve to new impact investing strategies for family offices and foundations to innovative approaches in philanthropy. None of this is to mention the huge innovations at the University of Utah, a place where aspirations for unsurpassed societal impact drive the entire campus. Our Institute began here more than 13 years ago and is now in a first-of-its-kind impact ecosystem that houses more than 750 students along with our headquarters. We were founded by Utah native and pioneer in impact, Jim Sorenson. Uniquely, and we think importantly, all of this is happening at a public university. Receiving this honor acknowledges the pivotal role that all of these institutions across public and private sectors have had in growing Utah's leadership in impact investing. It's also an opportunity to introduce impact investing to even more people in Utah. I suspect many of the people who read Utah Business or attend the awards luncheon will be introduced to impact investing for the first time. I'm excited to represent the industry and the Institute in that room. Where do you see the impact field making the biggest difference today? The growth of impact investing has been impressive since its inception in the early 2000s. Once a somewhat radical idea of leveraging capital for good, the field has now influenced the direction of capital, policy, and culture across all sectors worldwide. Currently, the field represents a market of more than $1 trillion. While that's a big number, the biggest difference impact investing has made, I believe, is in changing hearts and minds. Most of us in finance and business weren't taught that there is another way—a better way—to do business, to do good, and to build a world in which we all want to live. Impact investing has consistently demonstrated the ability to do all of those things. Moreover, impact investing catalyzes solutions to some of our most pressing challenges on a global scale. Those are big statements and are often received with even bigger skepticism. But where impact really stands out is in its accountability. We have the data because we measure and report the returns—both financial and social/environmental. There is still enormous work to be done, and we haven't reached the necessary scale to which we aspire, but the foundation and the measurable outcomes are there for all to see. We're growing, and I believe that growth is only going to escalate. What initiatives and research projects is the Institute working on right now that you expect will help build the market for impact? We are currently in the very early stages of several exciting new multi-year initiatives in spaces we find critical for exploration and direction. One that is particularly exciting for me is a large-scale initiative focused on Nature-based Solutions (NbS). Under this initiative, we are leveraging our long-standing expertise in impact finance with Janis Dubno and her team, along with the inclusion of world-renowned ecologist and National Geographic Explorer Dr. Nalini Nadkarni, who is now a Senior Fellow in Residence at the Institute. As part of our NbS initiative, we are working on a series of applied research projects and initiatives seeking to more fully harness the power of nature to address pressing environmental and societal challenges. While there are a few proven financial models for NbS, there are still large gaps to meet global targets, presenting a significant opportunity for investors to generate financial returns as well as measurable environmental and social impact. We're talking with potential funders and collaborators now on these projects. What do you see as the most significant opportunities right now for impact investing to grow? From how and when we talk about impact investing to where we send our capital, I see several strategies to scale the field: How can the impact investing ecosystem continue to build momentum amid shifting public policy and funding changes/challenges? While we aren't a policy shop at the Institute, we recognize the essential role that the public sector can play in our work and our mission. There are some headwinds in this moment for impact investing that I don't want to minimize, but I believe there's a huge opportunity for the field to grow. Impact investors and social entrepreneurs aren't simply do-gooders who act on a moral compulsion to do the right thing; we invest in, build, and amplify practical and scalable solutions to the world's greatest challenges by leveraging capital as a force to drive positive change. Doing that at scale requires partnerships at all levels and across sectors. Political conditions change—sometimes rapidly—not just here in the United States but across the world. We stay the course and identify areas where we can work together to achieve our mission. In other words, some doors may close while others open. Right now, there are numerous areas of overlap and bipartisan support in which we can and are working together toward solutions. One example is the ownership economy, which is creating the conditions by which more people in this country can generate wealth through areas like home ownership and employee ownership. The Sorenson Group, under Jim Sorenson's leadership, is heavily involved in this national effort, and we work in support of and in partnership with those goals. Where do you find new ideas or inspiration for your work? What have you learned recently that has stuck with you? I recently listened to the in-depth Acquired Podcast about the Rolex company, and everyone I've met with since is tired of hearing me talk about it. While it's true that I now want to purchase a Rolex watch, what has lingered in my mind since that podcast has been more about the structure of the company than the watches themselves. The legal and financial structures of the company allowed the executives to make decisions that I wish all company leadership could/would make. Hans Wilsdorf, the founder of Rolex, acquired that freedom for the company in 1960 when he gave the shares of the company to a private trust. For 65 years, the company has enjoyed the ability to make truly independent decisions, free from short-term shareholder interest, investor demands, or quarterly earnings calls. I know that not all companies can follow in Rolex's or Patagonia's footsteps directly, but the Rolex story reminded me how important it is for entrepreneurs to choose the right legal and financial structures to facilitate their objectives. Whether their goals are long-term sustainability, stable job creation, social impact, returns to the community, or innovation within the company, it's critical that founders make sure their legal structure and financing will permit them to make the decisions they need to make in order to achieve them. Connect with Katie Macc on LinkedIn.
Forbes
19-05-2025
- Business
- Forbes
Scaling Opportunity In Finance: Inclusive Pathways To Impact Investing
Through a new partnership with World Education Services, the Sorenson Impact Institute aims to expand the impact investing pipeline by increasing access to an apprenticeship program that connects students with real-world venture capital experience. Sorenson Impact Institute's student-driven apprenticeship provides hands-on training in venture ... More capital and impact investing. As the impact investing sector continues to grow, so does the opportunity to expand access to careers in the field. The next generation of impact leaders, shaped by their education and lived experience, will heavily influence where capital flows. To nurture a broader and more expansive talent pipeline for the impact investing sector, the Sorenson Impact Institute is partnering with World Education Services (WES) to expand access to its Impact Investing Apprenticeship Program. The partnership will support the Institute's Unlocking Impact Initiative — a hands-on, student-driven apprenticeship that provides training in venture capital and impact investing to students from all backgrounds. With support from WES — a nonprofit social enterprise that supports the educational, economic, and social inclusion of immigrants, refugees, and international students in the U.S. and Canada — six students from Miami Dade College and Bowie State University joined the 15 student interns from the University of Utah in the 2024-2025 apprenticeship program. Since 2013, more than 500 student interns have helped to deploy upwards of $62 million into early-stage companies and funds in health equity, climate resilience, workforce development, and financial inclusion. Student interns also have networking opportunities as they make professional and personal connections through the program. Nomzana Augustin, Associate Director of Partnerships and Strategic Initiatives at the WES Mariam Assefa Fund, said the organization's new partnership with the Institute reflects their shared commitment to impact investing as a tool to ensure capital reaches underfunded communities. 'Both WES and Sorensen seek to see new, diverse leaders in finance and investing, which can help shift how capital flows,' she said. 'Sorensen's program has proven impact in creating opportunities for investment leaders, better reflecting the talent that exists. WES is funding the expansion of this program to reach more students who might otherwise be excluded from this kind of opportunity.' In her role at WES, Augustin drives the fund's external partnerships, strategy, and initiatives with funders and other ecosystem partners to advance economic mobility for all. Shannon Meyer, Operations & Student Engagement Associate at the Institute, said WES is an exceptional partner that helps with guidance on updates, recruiting, and other elements of the apprenticeship program. 'They have valuable insights on how to make the recruiting process more accessible to historically underrepresented students so that talented students from all backgrounds can take part in our program.' In this Q&A, Augustin and Meyer discuss the apprenticeship program, its place in their organizational strategies, and their hopes for its influence on the impact investing sector. Nomzana Augustin: As a nonprofit social enterprise dedicated to advancing economic opportunity for all, WES recognizes the importance of empowering new leaders and creating career pathways for individuals with lived experience. Through this partnership, we're excited to see Sorensen continue to nurture young talent from underrepresented backgrounds, opening doors to careers in impact investing and venture capital. By supporting future investing leaders, we can help create a more representative impact investing ecosystem and, in turn, more inclusive economies. Developing representative leadership in finance will help bring impact investing closer to overlooked communities. Shannon Meyer: WES's mission to create pathways to economic opportunity and mobility for underserved communities complements one of the main objectives of our student program: to equip students with the skills and experience necessary to secure competitive jobs or internships following the program. The program immerses students in experiential learning opportunities, equipping them with the tools and experience needed to be successful in the workforce. Additionally, it provides opportunities for each student to network and build social capital with staff, founders, and fellow students across the country. These types of opportunities help build a foundational framework that creates a pipeline of future investment professionals that better reflects the talent that exists. SM: Our partnership with WES has allowed us to make the impact investing student program a paid internship for the first time. This helps us break down one of the barriers for students who might otherwise be unable to accept an opportunity like this due to needing to hold a paying job to support themselves or their families. It also ensures that students can take advantage of the learning opportunities provided by this program regardless of their economic status. This partnership has also enabled us to engage the student cohort in more travel opportunities, like attending conferences or pitch events. NA: The apprenticeship program goes beyond the impact investing field, offering a unique career launchpad. Importantly, the paid program enables students to build social capital for long-term career guidance and mentorship from peers and alumni — for example, at events like SOCAP and with the Morgan Stanley Inclusive Ventures Lab. Students who participate in the program gain new skills that offer opportunities to work in finance, consulting, investment banking, and social impact. Compensation for many of these jobs is generous and can place students well above the national average starting salary. This kind of experience is especially beneficial to students from underrepresented backgrounds who can transform their lives and communities with the resources and opportunities provided through the program. SM: This partnership helps advance our shared workforce development goals by providing students with experiential learning opportunities from day one. Students are tasked with projects and conducting due diligence that ultimately leads to the deal team choosing whether to invest in an early-stage company or not. Allowing students to have hands-on experience with real investment decisions — and real money — before they even graduate college is a massive opportunity, especially for those interested in pursuing careers in impact investing or venture capital. As we look into the future, we're excited about the opportunity to build out our employer network and career pathing for future students with support from WES. This will help drive forward a strong, talented pipeline of future leaders in the industry. NA: Students from various backgrounds build skills, social capital, and their career pathways through this program, which is unique in the impact investing field. We aspire to see more institutions and employers who are open to hiring professionals from underrepresented backgrounds. At WES, we believe that unlocking new talent is not a pipeline problem, but that there needs to be interest and commitment to an inclusive workforce, shifting employer practices. Hopefully, this program can inspire others to open doors to career opportunities for emerging leaders. NA: When WES launched the WES Mariam Assefa Fund in 2019, it was with WES's commitment to advancing participatory grantmaking and investing. This means that decision-making power for funding is given to the communities who know best about the issues affecting them. For example, in 2022, we partnered with Common Future to launch a participatory investing action lab with 16 leaders from eight institutions. During a yearlong initiative, we tested participatory strategies through a collaborative fund and compiled our learnings into a toolkit for other institutions looking to do this work. Investment decisions are rarely made by the communities the capital aims to serve, and participatory investing seeks to change this, leading to more informed decisions. Through our partnership with Sorensen, we hope to share ideas on how to ensure that students are involved in the design of the program as well as investment decisions. The students can bring fresh perspectives and new knowledge on the solutions that could be impactful for communities. For example, if a Bowie State student from a low-income household joins the program, they can share their observations on housing and financial inclusion, informing the decision-making process of an investment in their community or a community similar to theirs, based on their lived experience. SM: WES's approach ensures that programs are designed to meet the actual needs of the communities they serve. Within our program, students are actively involved in program design, bringing fresh perspectives and constructive feedback to me each semester. Our staff team is constantly learning from each other and, more importantly, from our students. We leverage the insights and experiences of our students to ensure that we're continuously adapting our program to be the best it can be for the next generation. SM: Partnerships like this are especially important because they bring together diverse expertise and knowledge to help address some of the challenges we see in today's world. The impact investing ecosystem is constantly evolving, and partnerships like this can drive innovation to help build a more comprehensive and resilient economy for generations to come. NA: It's important that our economies and communities better reflect the country we live in. The impact investing ecosystem will benefit from including leaders of different backgrounds who can help determine where funds go, ensuring that historically neglected communities are no longer overlooked. WES looks forward to telling the stories of the student participants and how the program impacts their careers, lives, and communities. We encourage interested students to apply to the apprenticeship program, and for people to spread the word to promising candidates. Further, we hope this initiative can inspire similar programs and opportunities for more underrepresented talent to gain experience and enter careers in impact investing and venture capital.
Forbes
02-04-2025
- Health
- Forbes
Building Trust And Access For Healthier Latino Communities
Erik Cárdenas co-founded Zócalo Health to increase access to clinical and social care and improve ... More patient experiences for underserved communities. In this Q&A, Sorenson Impact Institute VC & Impact Investing Senior Associate Hunter Conrad talks with Erik Cárdenas, Co-Founder and CEO of Zócalo Health, to learn how the company leans into community and connection to increase access to clinical and social care and improve patient experiences for underserved communities. The Sorenson Impact Foundation, which invests in innovative impact business models enabling resilience, opportunity, and higher quality of life for low-income populations, invested in Zócalo Health in 2024. Erik Cárdenas founded Zócalo Health to help address the healthcare needs of Latinos and other underserved populations, and in turn, help build more resilient communities and a stronger economy. As Cárdenas describes, connecting underserved groups with quality healthcare is a foundational step that creates rippling impact: 'When someone gains access to quality care, it doesn't just improve their health; it strengthens the foundation of their household, boosts workforce productivity, and reduces long-term healthcare costs for the system as a whole,' Cárdenas says. The United States healthcare system faces significant challenges in delivering effective, equitable and accessible care – particularly for low-income communities, people of color, and rural communities. High costs, complex insurance structures, and limited access to primary and preventive care exacerbate disparities, leaving millions underserved or without care altogether–despite the U.S. spending a staggering 18% of GDP on healthcare costs. Because social determinants of health (SDoH) such as housing, education, food access, and transportation are key drivers of health, low-income communities are at elevated risk for poor health outcomes. Zócalo Health's focus on increasing access to quality care by meeting patients where they are in their communities with a holistic care model demonstrated clear alignment with the Sorenson Impact Foundation's investment thesis in the health sector. In addition to the impact for individuals achieved through better health outcomes, a community-based, preventative model such as Zócalo has the potential to reduce reliance on costly, reactive healthcare interventions and more effectively manage chronic conditions, thereby reducing overall costs to the system. 'At a macro level, healthcare equity is a matter of national stability,' Cárdenas says. 'The U.S. Latino population is projected to reach nearly 30% of the total population by 2050. Ensuring that this growing demographic has access to high-quality, culturally competent healthcare isn't just the right thing to do — it's a necessity for the country's economic and social future.' Zócalo Health aims to make a lasting impact by providing culturally aligned services that build trust between the Latino community and healthcare providers. 'It's not just about logistics — it's about deeply ingrained cultural beliefs that shape how Latinos engage with healthcare,' Cárdenas says. 'In California, which is the first market where we are operating, Latinos make up over 50% of the Medicaid population, yet they experience worse health outcomes and lower engagement than other Medicaid members because the system does not meet their needs from a language and cultural perspective.' The community health workers at Zócalo Health, who are hired and trained locally, are familiar with the challenges their patients face. With this perspective, they can better help clients navigate the healthcare system, identify benefits they qualify for, and connect them with support for housing, food, transportation, and other essential services. For Cardenas, access to healthcare is an essential pathway to empowerment. He recently joined me for a conversation about the community-based services that Zócalo Health provides and how they support the company's mission to shape a more equitable healthcare system. Hunter Conrad: Please share a bit about why you established Zócalo and the services it provides. How do they accommodate some of the unique challenges that Latinos face in accessing healthcare services? Erik Cárdenas: Zócalo Health was born out of both a personal and professional calling. Growing up in a predominantly Mexican neighborhood in Houston, I saw firsthand how Latino families struggle to access culturally responsive, affordable, and trustworthy healthcare. Too often, the system feels like an impenetrable maze, particularly for Latinos on Medicaid, who face language barriers, provider shortages, and a deep mistrust of institutions due to years of systemic neglect. Many don't know what benefits they qualify for or how to navigate the system. Others face social barriers like food insecurity, unstable housing, or a lack of transportation, all of which directly impact health. Zócalo Health was created to remove these barriers and provide whole-person care that reflects how Latinos actually engage with healthcare — not how the system expects them to. Our model blends primary care, behavioral health, and community support services through bilingual, culturally competent providers and trusted promotoras de salud (community health workers) who guide members through every step of their care. We also take a flexible approach to care delivery that includes extended hours for working families, proactive outreach, and virtual, in-home, and community-based options. By meeting people where they are, honoring their lived experiences, and eliminating friction points, we're not just delivering healthcare — we're creating a system that Latinos trust and feel ownership over. HC: How does Zócalo help individuals access and navigate the healthcare system – helping to overcome language barriers and a lack of systematic trust? EC: For many Latinos, healthcare isn't just inaccessible — it's alienating. The system is complex, bureaucratic, and historically unwelcoming, leaving people feeling dismissed, misunderstood, or afraid to engage at all. At Zócalo, we bridge this gap by prioritizing trust, language accessibility, and cultural alignment. Our promotoras de salud, who are trusted members of the Latino community, help individuals understand their Medicaid benefits and enroll in services. They go beyond logistics to help address deeply ingrained cultural beliefs that shape how Latinos engage with healthcare. By embedding trust into every interaction, removing language barriers, and simplifying the process, Zócalo Health doesn't just connect Latinos to care — we rebuild confidence in the system itself. HC: How does access to healthcare play out beyond these individuals — to their families, communities, the economy, and society as a whole? EC: In Latino communities, familismo — the cultural emphasis on family — is central to how people live, work, and make decisions. When one family member struggles with a chronic condition, mental health challenge, or unaddressed medical need, it affects everyone. A parent managing uncontrolled diabetes without proper support, for example, may miss work frequently, be unable to care for their children, or experience financial strain from ER visits. A child with undiagnosed asthma might struggle in school, impacting their future opportunities. By ensuring that individuals — especially parents and caregivers — have access to preventive and ongoing care, we're not just improving their lives; we're creating a more stable, healthier environment for entire families. Latinos are the backbone of many industries in the U.S., including agriculture, construction, service, and hospitality. Yet, these same workers often lack access to employer-sponsored healthcare, making Medicaid their primary — if not only — option. Without access to preventive care, minor health issues can escalate into major problems that take individuals out of the workforce, destabilizing families and the local economy. While we are a venture-backed startup, we are deeply committed to social impact. We don't just deliver care; we invest in the very communities we serve. One of the most powerful ways we do this is by hiring and developing community health workers from the same neighborhoods where our patients live. This has impact on two critical fronts: This workforce development approach is a sustainable model for economic empowerment. Rather than relying on external organizations to provide social services, we are building economic opportunity directly within the community, ensuring that wealth and expertise remain where they are needed most. From a broader economic perspective, when individuals have stable employment, access to healthcare, and career growth opportunities, they are better positioned to support their families, contribute to local economies, and break cycles of poverty that have persisted for generations. HC: How does Zócalo work with health plans to coordinate care and clinical services? EC: Zócalo Health is redefining how healthcare is delivered to Latino communities, and a critical part of that mission is our partnerships with Medicaid health plans. While we started in California, where we provide Enhanced Care Management (ECM) and community support services, our model is scalable and replicable. We are actively expanding to other states because the challenges we address — low engagement, fragmented care, and unmet social needs — are not unique to California. Health plans across the country need solutions that effectively reach, engage, and care for underserved populations, and that is exactly what we do. California is home to the largest Latino population in the U.S., and Medicaid plays a vital role in ensuring healthcare access for this community. Despite this, Latinos continue to face significant barriers to care. We provide a community-centered, tech-enabled model that goes beyond traditional clinical care. Our services include ECM for Medicaid members with complex medical and social needs. We also connect Medicaid patients with bilingual, culturally competent providers. By embedding trusted community relationships into our care model, we increase engagement, improve health outcomes, and lower the total cost of care — key priorities for our health plan partners. HC: Describe how you've seen access to healthcare change people's lives. EC: We see every day how trust in healthcare can mean the difference between fear and hope, isolation and engagement. For many Latinos, especially those navigating the uncertainty of immigration policies, fear has become a barrier to care. Patients tell us they avoid leaving their homes, even for basic needs, worried that seeking help could expose them to risks beyond their health. One woman, a Medicaid recipient, had been living in self-imposed isolation, afraid to step outside. She had ignored her own medical needs for months, unsure where to turn. But through Zócalo, she found a safe space. Our promotoras de salud reached out, listened without judgment, and connected her to essential resources. Her story is not unique. Forty percent of Medicaid recipients report receiving care from someone they don't trust. We believe healthcare must earn that trust first. No one prioritizes heart health if they're worried about keeping the lights on, and no one focuses on managing diabetes when they fear losing their home. This is why Zócalo Health exists: to meet people where they are, listen first, and create a system they feel safe engaging with. Only when people feel safe can they truly take charge of their health. Hunter Conrad is a Senior Associate on the Impact Investing team at the Sorenson Impact Institute, where she focuses on driving health equity through strategic investments. With a passion for creating positive social change, Conrad leverages her expertise in building and scaling products in startups to identify and support ventures that address systemic health disparities and improve outcomes for underserved communities. She holds a bachelor's degree in Environmental Health from UC Berkeley and an MBA from the University of Utah where she won the 2024 Kellogg-Morgan Stanely Sustainable Investing Challenge. Erik Cárdenas is the co-founder and CEO of Zócalo Health, a tech-enabled, value-based care provider dedicated to serving entire Latino households facing complex health challenges and unmet social needs. Focused on Medicaid families in underserved communities, Zócalo Health delivers culturally aligned care by meeting individuals where they are, supported by multidisciplinary care teams centered around the effective use of community health workers. Prior to launching Zócalo Health, Cárdenas was a founding team member and senior leader at Amazon Care, where he played a crucial role in leading technical teams and significantly contributed to Amazon's COVID-19 response and global testing initiatives. His entrepreneurial spirit and expertise in health systems are also reflected in his leadership roles at Tenet Health and EverlyWell. Cárdenas earned his undergraduate degree from the University of the Incarnate Word in San Antonio, TX. In 2023, he was recognized by Modern Healthcare, Fierce Pharma, and Rock Health for his innovative contributions to healthcare.
Forbes
28-03-2025
- Business
- Forbes
Reframing The Impact Measurement Conversation
Standardized impact measurement is key to advancing the flow of capital to impact. By Allison Boxer Over a plate of local Utah cookies in a sunny conference room of our new office space at the Impact and Prosperity Epicenter, the Sorenson Impact Institute's leadership team recently dove into the 2024 State of the Market report from the Global Impact Investing Network (GIIN). Our agenda was to analyze trends and implications for our work, but one topic, in particular, became the focus of extended debate and discussion: the purpose and value of standardized impact measurement. The persistent nature of the topic of standardization (it consistently ranks high on impact investors' list of frustrations, it seems) spurred this roundtable discussion. According to the GIIN report, investors face three main challenges with measurement: fragmentation of measurement frameworks, difficulty in comparing results, and verifying the impact data itself. Despite these challenges, the majority of investors (70%) are using generally accepted impact measurement frameworks such as IRIS+, SASB, GRI, and HIPSO. This presents a paradox: while a majority of investors are attempting to apply standardized frameworks, measurement-related challenges remain the most acute. So much so that 30% of impact investors are not using standardized methods at all. All of this helped us reframe how we think about impact measurement by recasting the broader conversation around why it's truly important and how it can best be accomplished, starting with this question: How can an impact investor standardize impact outcomes in a way that allows them to compare an organization's impact on kindergarten readiness with a different organization's impact on curbing deforestation? Or, for that matter, how would an impact investor standardize an organization's impact on kindergarten readiness in Canada versus another organization's impact on kindergarten readiness in Brazil? One colleague argued that, fundamentally, standardization leads to watering down metrics such that the measurement is no longer useful. Therefore, they concluded, the whole exercise of standardizing impact measurement is simply impossible to do in a meaningful way. A fair point. I took a hard line in the other direction. I argued that we have something to learn from the history of financial accounting and reporting, which we now consider highly standardized but was not even developed in the early 20th century (the Federal Reserve set the first standard in the United States in 1917, and auditing was mandated in 1933). Financial accounting and reporting have a lot more wiggle room than I think we choose to acknowledge. And financial accounting and reporting are only useful when the analyst knows the company's goals and strategy. I also argued that the goal isn't to standardize in order to compare all impact areas with each other. For example, I like what SASB has done by identifying what is material for any given industry, making it more of an apples-to-apples comparison, and only on relevant dimensions. Taking financial accounting and reporting as a case in point, much of financial analysis depends on the competitive set the analyst selects. For example, an exit multiple for a SAAS company is not determined by looking at the recent exit multiples of a tugboat company. But the truth is, I don't disagree with my colleague. The reality isn't nearly as binary as for or against standardization. Our discussion evolved. As an Institute dedicated to the growth of the market for impact, this is a key question. Capital markets need some way to measure and evaluate outcomes to allocate capital. So regardless of our ideological conversation, it's a necessary condition of capital flows. And as our goal in impact investing is to increase the flow of capital to impact, the GIIN data shows that forward movement in standardizing impact measurement is needed. That question was easier to answer, but it leads to other considerations, such as: Why do we care about standardization of impact outcomes, and when is it most helpful? A few notable benefits came up during our discussion. First, comparability allows capital allocators to more effectively identify and fund projects with the greatest potential for positive outcomes. This also enhances tradability. With comparable outcomes, investments become more liquid, which leads to increased market development. Standardization can also reduce due diligence burdens. Clear, standardized metrics allow wider participation from investors who might otherwise hesitate from uncertainty around impact data and more efficiency in deploying mission-aligned investments. For new and smaller entrants, turnkey frameworks and reports offer a significant advantage. Instead of developing custom measurement approaches, organizations can adopt established tools, skip that time-consuming and expensive hurdle, and accelerate their participation in the impact investing space. Furthermore, standardized metrics foster transparency and credibility. When consistent metrics are used, investors gain confidence in the legitimacy and effectiveness of impact claims, enabling a level of trust essential for the continued growth of the impact investing market. Lastly, standardization plays a critical role in policy setting. When outcomes can be reliably compared, policymakers are better equipped to assess program effectiveness and design incentives that guide capital toward the most impactful solutions. Standardization supports a more efficient and impactful allocation of resources by those who, though not subject matter experts, have enormous influence on the distribution of funds. After thinking through these benefits, we thought that rather than asking, 'Is standardization possible,' a better set of questions might be: In other words… As we start looking at this question, I go back to the SASB approach, which identifies material issues for each industry. This approach leads to standardization of organizations within a field rather than across fields. For example, one of my colleagues noted that in the climate space, impact measurement helps us evaluate opportunities on a global scale. Because climate represents a global crisis, it is helpful to know which interventions and which locations will produce better outcomes to prioritize investment. Targeting the most effective and efficient interventions will help us better address the crisis as a whole and save the planet sooner. However, this is not necessarily the case in early childhood development, where moving a dollar from India to Brazil is neither feasible nor objectively considered a better investment. While our round table conversation raised more questions than answers, these questions outline a pathway for new ways of thinking about impact measurement. Our goal is to reframe the broader conversation away from a binary argument by asking new and different questions. In our discussion, we felt it would be helpful to identify the potential criteria to make a field ripe for standardization. They should have: Using this list, fields that may be ripe for standardization of outcomes measurement and reporting could include climate change, public health, financial inclusion, and economic development. Fields where standardization may be less useful include early childhood development, community development and social cohesion, and policy advocacy. It's helpful to bring in the perspective of my colleague Dr. Nzinga Broussard, head of our impact measurement and management practice. She explains that she is less interested in standardized metrics themselves and more interested in a standardized approach to thinking about measurement that enables investors to better understand why and how outcomes measurement is determined. Dr. Broussard has observed that while some entities have notably attempted to standardize outcomes by converting them across organizations and fields into dollar values, those expected to implement the approach almost always push back. Their critique is that interventions that can be more easily monetized will inevitably attract greater investment even when they are not the only approaches meriting investment. Most impact professionals agree that impact is equal to breadth times depth. So the goal, Dr. Broussard explains, is to design a way to measure breadth and depth since these two dimensions define impact. We can easily calculate breadth, she points out. Measuring depth is harder. The way to develop effective impact measurement is to develop a framework around how to measure depth. In response to this challenge, Dr. Broussard advocates for monetization accompanied by a narrative so that benefits that cannot be monetized are not overlooked. Dr. Broussard's hybrid model brings me full circle to the example of financial reporting, which has coalesced over the past century into a standardized set of metrics and accompanying notes, sometimes hundreds of pages long. This data is extensive, and it creates a narrative that allows investors to find the nuance they need to make investment decisions. As with financial reporting, impact measurement and reporting will likely coalesce into a combination of standardization and nuance via narrative. By the end of our roundtable discussion, our team had shifted the conversation. Rather than a binary discussion about the merits of standardization across all industries, we sought to understand where standardized measurement and reporting would be most useful to address specific market challenges and how to identify boundary conditions for where standardization would be most practical. Our hope is that reframing in this way will similarly help the industry move forward in a way that helps investors feel more comfortable channeling capital to impact ends. Allison Boxer is the Managing Director of Impact Academics at the Sorenson Impact Institute and the James Lee Sorenson Presidential Endowed Chair in Applied Research. She leads all academic programming and program development related to Impact Investing and social impact. At the University of Utah's David Eccles School of Business she teaches the courses Social Impact Strategy and Innovation, Global Ventures, and Social Entrepreneurship, among others. Additionally, Allison leads strategic planning for the Business School as Strategic Advisor to the Dean of the David Eccles School of Business at the University of Utah.
