Whether you are funding impact ventures, building world changing companies from the ground up, or partnering to scale solutions, it is worth asking: ‘Are we really making a difference?’
At Enviu, this question isn’t just rhetorical, it’s foundational. Good intentions are often where it starts, but without tracking the outcomes of our interventions, we cannot be certain that the time, effort, and the capital we invest are driving the systemic change we seek.
Why is Impact Measurement Important?
Impact Measurement has become more than just a buzzword. Social organizations, impact investors, and governments around the world are pushing for robust frameworks to truly understand the net social and environmental value being created. Just as financial metrics indicate whether a business model is viable and self-sustaining, impact metrics indicate the effectiveness of our interventions in moving closer to our social and environmental goals.
At Enviu, impact is at the heart of our business model, and impact measurement is pivotal in translating our culture of impact into measurable outcomes. On the one hand, it is an agent of accountability, showcasing to our current and potential funders the catalytic impact of their funds. On the other hand, it is a steering guide, and a core part of how we learn, improve, refine our strategies, and scale our impact more effectively.
How do we Approach Impact Measurement at Enviu?
This year we took a step back to ask ourselves, “how do we know if we’re really driving the change we aim for?” With ventures operating across domains and locations, this couldn’t be answered in isolated metrics or scattered stories. Answering this question would require a clearer view of our collective footprint, one that would help us learn, and steer across programs. That is why this year we introduced our global impact framework, with the help of Metabolic, which allows for shared structure, while still honoring the distinct realities of each program. It helps us connect the dots across ventures, while still leaving space to reflect on the unique goals within each domain.
Our framework considers impact on two levels. On the one hand, we track global metrics; numbers that give us a sense of the collective impact of all our ventures across Agrifood, Textiles, Mobility, and Zero Waste. These show us how we are doing on big picture environmental, social, and economic goals like reducing waste, creating jobs, and cutting emissions.
But impact isn’t a one size fits all. Each of our domains operate in a different system with its own challenges, and long-term goals. So, alongside global tracking, we use domain-level metrics that reflect domain specific nuances guided by their Theory of Change (TOC). These are carefully chosen to capture what change really looks like in that space, for example, how smallholder farmers are engaging in regenerative agriculture through HalisiGro, or how Mission Reuse is rallying stakeholders to build momentum and shared direction in the reuse space.
Which One is Better: Quantitative or Qualitative Impact Measurement?
Quantitative data plays an important role in our lean approach towards venture building. A clear example of this data informed learning is HalisiGro, our venture supporting smallholder farmers in the transition towards regenerative agriculture. Early assessments revealed that only 10% of farmers were successfully transitioning. By leveraging both quantitative data and direct feedback from our farmers, we were able to redesign training methods to be more useful for farmers. This resulted in the transition rates improving to 60%, highlighting how effective impact measurement enables us to adapt and significantly improve our outcomes on the ground.
However, since much of our venture building focuses on long term impact, much of this impact does not materialize straight away. This is why we do not rely on numbers alone. Quantitative data often misses the bigger picture as it may limit us to measuring what’s easiest, and perhaps not what’s most meaningful.
This is why we believe the key to significant impact measurement, and more importantly to impact-driven learning, is striking the right balance between the quantitative and qualitative data. Since systems are a compilation of complex interconnected forces, operating in these dynamic systems requires a dynamic approach. Qualitative narratives from key stakeholders help in the continuous learning of the system and the lived experiences, which numbers alone cannot capture.
Take for example, Krishna:
“This partnership has enabled us to look at waste in a new direction. I have collected 20 tonnes of clothes. 120 tonnes have come in from 10 dry waste collection centres. I want to open a bigger facility for textile waste as we have the skills and the opportunity,” he says.
Krishna collects end-of-life hospitality textiles from the partner hotels of Second Spin, a venture of Enviu Textiles, and sorts and segregates them at a dry waste centre. These are then upcycled and recycled by Second Spin.
What we have learned from Krishna’s story goes far beyond the tons collected or the facilities opened. Second Spin not only supports his livelihood, but plays a part in dismantling long-standing stigmas surrounding waste work, and offers a window into how access to stable income, dignity, and respect can be pivotal in liberating waste workers from generational cycles of discrimination. Stories like Krishna’s elevate the voices of those most impacted by our ventures and often surface the earliest signals of the systemic change that we are driving.
How Impact Measurement can Reflect Systems Change
If we want to drive meaningful change, simply adapting to inefficient systems is not enough. We must work to fundamentally redefine these inefficient systems. Krishna’s story is testimony that transformation happens not only in metrics but also in mindset shifts, relationships, and power dynamics. Through Mission Reuse’s (a joint program between Enviu and Fair Resource Foundation) initiatives and partnerships for example, reuse has entered the political agenda, ultimately resulting in real policy changes in The Netherlands.
Policy change, one of the most effective levers of systemic change, is often the result of a series of smaller, interconnected shifts in the system. This is what we are currently working on better defining. What are the subtle indicators that signal that we are progressing in the right direction towards our desired system. This, however, is challenging since systems are dynamic and ever-evolving, so these signals must also be regularly revisited and redefined.
Despite these challenges, we are actively exploring and adapting our approach to better navigate this dynamic, evolving landscape and deepen our understanding of the consequences of our actions.
We also firmly believe in the idea that we can achieve greater impact together, and welcome partners, investors, and communities who share our vision to collaborate, engage, and co-create solutions alongside us!
This blog was written by Enviu’s Impact Measurement Analyst – Lakshmi Menon.
