Jorge de Angulo, Director of Latin America, Acumen 

As investors, we look at both criteria: both qualitative and quantitative. From a quantitative standpoint, it is important to have clear metrics and clear measurements with comparable indicators that can be replicated in the future.

In addition, having qualitative data that allows us to gather testimonials from various stakeholders, particularly the direct beneficiaries of these investments. It is absolutely crucial to understanding and putting a face to those numbers. We make sure that the impact is real and meaningful. It has many facets.

At this moment, for example, we are analyzing a company that is about to enter the portfolio. We are close to closing the investment. This company has both a social and environmental impact. Let me give you an example. This company has the potential to create a new value chain with a fruit that grows in the dry tropical forest of Colombia, and with that fruit create various applications for dermatological products and household cleaning products. In addition to creating this new value chain with small producers in different parts of Colombia, the company is helping to reforest this dry tropical forest, which has been heavily exploited over time from an environmental point of view. So, this company has a two-way impact: social, through its impact on small producers, and environmental, through reforestation of the tropical dry forest.

On some occasions, we have rejected investments because the impact did not seem sufficiently credible or convincing. We would like to see, for example, the agribusiness companies we invest in use models that enable small producers to integrate into value chains through associative models, where small producers can produce their products and sell them at higher prices instead of simply working on a larger farm.

Key takeaways

• Both qualitative and quantitative data are key to demonstrating your organization's impact.

• Impact investors assess a venture from several angles, including social and environmental impact.

• Impact is most compelling when it creates financial independence, reimagines value chains or changes systems.