S2G Ventures, a leading multi-stage investment firm focused on the food, agriculture, ocean, and clean energy markets, has recently announced its approach to Impact Measurement & Management (IMM). The purpose of this approach is to leverage information about the impact of the firm’s work to improve decision-making and engage with others around creating long-lasting, positive, and meaningful change for people and the planet.
S2G Ventures’ IMM approach centers around generating information about the impact of a company’s products and services and its business operations to inform management decisions. S2G has been developing this approach over the past two years and views it as core to providing value for its portfolio companies. The IMM approach directly reflects S2G’s strategy to be more holistic in its ability to underwrite and deliver value as markets continue to evolve and as volatility becomes the new normal.
S2G’s IMM approach involves three core practices:
- Design & plan for impact: identifying impact aims, key learning questions, and IMM plans.
- Measure & evaluate impact: collect, document, and interpret information to measure and understand the impact.
- Learn from impact: use data and insights to inform decision-making and influence others.
The firm aims to contribute to emerging and evolving standards in the IMM space by engaging in industry memberships such as the Global Impact Investing Network (GIIN), Impact Capital Managers, Impact Frontiers, 1000 Ocean Startups, and the Food, Nutrition, and Health Investor Coalition.
As a value-add investor, S2G is committed to continually strengthening and refining its internal IMM capabilities in service of supporting its portfolio and pursuing its vision for a humane and healthy planet. The firm will evolve its IMM approach as it collects feedback from S2G staff, portfolio companies, and peers and will share its learnings publicly.
S2G Ventures’ IMM approach aligns with leading principles and standards in the investment industry, including the United Nations Sustainable Development Goals, Operating Principles for Impact Management, SASB Standards, Principles for Responsible Investing, and more. The firm has also developed and introduced to its portfolio community an Impact Playbook to help companies think through and plan for how to measure and manage the impact of their products/services and the factors that are most relevant to their operations. S2G is now making this Playbook publicly available to benefit companies and investors outside of the S2G community.
Through ongoing industry engagement, S2G aims to contribute to a rapid, global transition to net zero or negative greenhouse emissions by 2050 or earlier. S2G’s IMM team is actively contributing to the Venture Climate Alliance’s (VCA) Methodology Working Group to develop a rigorous, consensus-based framework and toolkit for use by member firms and others.
Overall, S2G Ventures’ approach to IMM is a step forward in creating long-lasting, positive, and meaningful change for people and the planet. By focusing on generating information about the impact of a company’s products and services as well as its business operations to inform management decisions, S2G Ventures is setting an example for other investment firms to follow. By contributing to emerging and evolving standards in the IMM space, S2G Ventures is driving systemic change and enabling companies to unlock greater returns and drive social and environmental outcomes.
Image provided by Akil Mazumder