How do you ensure your impact investments truly drive change?

As you curate your portfolio, discerning genuine impact is paramount.

Dive into these 3 pivotal aspects during your due diligence to make informed, transformative choices.

1. Impact Potential

• What outcomes could the company (realistically) attain?

• Can it effectively address the problem at a significant scale?

• How extensive is the issue it aims to solve?

(This is especially important for early-stage companies – they may not have achieved results yet, but they might have tremendous potential to solve the problem once the product is ready.)

2. Impact Achieved

• Has the company already achieved tangible impact results?

• What is the scale of the achieved results?

• How substantial was the positive change?

• How directly does it enhance the well-being of the target population?

3. ESG Practices

• Does the company have major negative externalities?

• What procedures are in place to monitor environmental, social, and governance aspects along the value chain?

• How are potential ESG risks managed?

By reviewing these 3 elements as part of your due diligence, you will be able to:

• Set ambitious yet realistic impact goals with the company.

• Create a non-financial support plan that’s tailored to their real needs.

• Identify red flags and mitigate potential risks in advance.

And start the investment on the right foot.