Roundup: top standards and frameworks for measuring impact

For companies aiming to make a real difference, measuring and reporting impact is essential. It’s about transparency, meeting stakeholder expectations, and building trust. But it’s not always easy—complex data, lack of standardization, and resource constraints are common challenges. That’s where these frameworks come in.

Top standards and frameworks for measuring Impact

1. Global Reporting Initiative (GRI)

Best for: Large corporations
The GRI framework is a comprehensive tool that helps organizations report on economic, environmental, and social dimensions. It’s ideal for companies looking to meet multiple stakeholder expectations with detailed sustainability reporting.

2. B Impact Assessment (BIA)

Best for: B Corps and businesses aiming to improve performance
BIA evaluates a company’s impact on workers, community, environment, and customers. If you’re aiming for B Corp certification or want to boost your social and environmental impact, this is the tool for you.

3. Social Return on Investment (SROI)

Best for: Organizations communicating impact to stakeholders
SROI converts social and environmental value into financial terms. This helps organizations quantify and share the tangible benefits of their initiatives with stakeholders.

4. Impact Management Project (IMP)

Best for: Investors and organizations seeking performance alignment
IMP offers a comprehensive approach to understanding and managing impact, using five dimensions. It’s perfect for those looking to align performance with their impact goals.

5. Theory of Change (ToC)

Best for: Nonprofits and social programs
ToC is a method used to plan and evaluate social change. It’s particularly useful for organizations that need to map their impact pathways and promote positive social outcomes.

6. Sustainability Accounting Standards Board (SASB)

Best for: Public companies and investors
SASB provides industry-specific standards for reporting on financially material ESG factors. If you’re focused on how sustainability impacts financial performance, this is the framework to follow.

7. Integrated Reporting (IR) Framework

Best for: Organizations reporting on both sustainability and financials
The IR Framework merges sustainability and financial performance, offering a holistic view of how organizations create value over time.

8. Sustainable Development Goals (SDGs)

Best for: Organizations aligning with global priorities
The UN’s SDGs consist of 17 global goals addressing social and environmental challenges. This framework is perfect for organizations looking to align their impact with global sustainability priorities through cross-sector collaborations.

Why companies need to measure impact

Measuring impact helps companies demonstrate their commitment to sustainability, align with global goals, and communicate their efforts to stakeholders. Reporting on environmental, social, and governance (ESG) performance is crucial for attracting investors, retaining customers, and ensuring long-term success.

Common challenges

• Data complexity. Companies often face difficulties in gathering accurate data across various dimensions, such as environmental, social, and financial factors.
• Standardization issues. Choosing the right metrics and frameworks can be challenging, especially when trying to align them with the organization’s goals.
• Resource limitations. Smaller companies may lack the necessary expertise or tools to effectively measure and report impact.
• Meeting stakeholder expectations. Balancing transparency with the diverse needs of stakeholders can be a complicated task.

How frameworks help

These frameworks provide structured guidelines and standardized metrics, simplifying the measurement and reporting process. Whether you’re looking to improve performance, align with global sustainability priorities, or communicate impact effectively, the right framework can make all the difference.

Conclusion

Using the right framework allows your organization to navigate the complexities of impact measurement and reporting effectively. Whether you’re a large corporation or a nonprofit, these tools can help you meet your goals, improve performance, and make a positive difference.