Measuring business impact

R. Cohen: "Leading companies will have to measure their impact".

The visit of Sir Ronald Cohen, Chairman of the Global Steering Group for Impact Investment (GSG), during the Impact Week from Impact Observatory by Transcendent & Ontier has allowed us to put the spotlight, through the media, on the importance of social and environmental impact as a lever of value for companies.

In this respect, the father of the concept of impact investment gave, during those days, a newspaper interview El PaísHe also spoke about how capitalism is changing to become a more socially and environmentally friendly model. "Companies that want to maintain a position of leadership will have to anticipate and start to measuring its impact"Cohen said.

Business Impact

The President of the GSG also spoke about the meetings he held with the entrepreneurs of our country, organised by the Impact Observatory promoted by Transcendent and Ontier.

As he told many of our country's managers, the case of Tesla is a clear example of how companies that do not have a negative impact on the planet will be the most highly valued.

The importance of business transparency in measuring impact

He also pointed to younger consumers as one of the levers that is driving change. Increasingly, younger generations are becoming more reluctant to buy products or services, invest or work for companies that are not committed to people and the planet, with a purpose that goes beyond financial gain, focusing on their purpose in life.

This is why Sir Ronald Cohen insists on the importance of measuring impact, given that investors seek to maximise their investment through impact. However, the president of the GSG assures that there is no transparency in impact and that this will be the key to change in this model of capitalism that we have known until now. And, he says, "the measuring impact is what will allow consumers and investors to compare companies and make decisions based on the positive impact that each of them generates.

Capitalism is shifting towards a model that seeks transparency of the impact generated, and that transparency will come through the measurement and monetisation of impact"; something that for the Impact Investing promoter will come in the next 2 to 5 years.

"If companies do not harness the potential of technology to make both the positive impact generated and the contribution to finding solutions to humanity's grand challenges scalable, they will miss a huge opportunity," Cohen concludes.

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