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Impact measurement: best practices

Written by LEMON ENERGY | Dec 3, 2024 3:07:51 PM

We met with impact economy players at the Universités d'Été de l'Économie de Demain at the Cité Internationale Universitaire on August 30, 2023.

Numerous topics were covered during a rich program, such as new business models, governance and transformation support. The masterclass Measuring your impact : prove & improve, led by Tony Bernard of Impact Tank, was highly instructive.

Summary of best practices shared by Jérémie Joos of KPMG, Cédric Conrad of Loxam, Mathilde Dufour of Mirova, and Louise de Rochechouart of Avise.

Integrating impact measurement and extra-financial performance reporting

Impact designates, according to ADEME, "the qualitative, quantitative and functional modifications of the environment (negative or positive) engendered by a project, a process, an organization(s) and a product(s), from its conception to its "end of life".

While non-financial reporting describes activities statically, impact measurement follows the dynamic evolution of indicators.

For companies, it is increasingly important to establish these impact indicators. They are required not only by suppliers and distributors, but above all by regulations. In particular, the new CSRD directive on sustainability reporting by companies, which will apply progressively from 1er January 2024, requires evidence of the methodological robustness of impact measurement.

Defining your indicators

As each company's activity is specific, it is difficult to establish a common frame of reference. A sector-based approach is more appropriate. After all, impact measurement must serve your strategy. Each indicator must have a purpose:

  • Orient decision-making
  • Understand a situation
  • Provide evidence

As needs differ for a group headquarters or a local site, it's important to co-create indicators at each level of the organization. By adapting indicators to needs, you can involve everyone in measuring impact.

Going beyond the numbers

It's often necessary to analyze data qualitatively to fully understand the impact of something, and not just based on quantitative data. It's important to be aware of uncertainties, and to favor qualitative data over precise but incomplete measurements.

Finally, it's important to be aware of uncertainties.

Finally, we need to assess the interactions between different actions. For example, an action with a positive environmental impact may have a negative social impact.

In conclusion, here are three key points to bear in mind.

In conclusion, here are three points to remember when implementing impact measurement:

  • Start from your strategy to build indicators and targets at all levels of the organization.
  • Complement numbers with more qualitative field data.
  • Consider impact in a systemic way, taking into account the interactions between the actions to be implemented.