In a Globalized World with free movement of goods and capital, investments are not allocated effectively and efficiently to the areas generating the highest absolute impact on the communities and environment they operate in.
There are two main reasons behind this simple fact.
- Profit (and not social impact) is usually the main driver in decision making for investors, and social impact cannot be “included” or accounted for in profit calculations
- When an investor or decision maker actually wants to use social impact as investment criteria, it becomes incredibly challenging to assess social impact and to compare which for profit or non-profit organizations/ companies/ projects are generating the highest global social impact.
The main cause of ineffective and inefficient capital allocation is then in summary the fact that there is no universal way to measure social impact across sectors, companies, etc, and to include that social impact measurement into the decision making of investors, individuals, organizations, etc. We aim to provide one.