Unfortunately, Harry Hummels exhibits of the biggest challenge Impact Investing faces. He lacks a sound approach to identify, evaluate and make decisions about impact. More measurement, more numbers, more metrics are not going to cut it - I say that as a mathematician, CA, and CFA Charterholder. I am an Integrated Investor - I make investment decisions integrating information from analysis, emotion, intuition and body. It is only with integrated investment decision-making are we going to see any real positive change and innovation.

The financial markets were highly measured before the 2008 crash - which evidences that people's behaviours around measurement can do a lot of harm. Numbers can be manipulated, chasing measurable things becomes a never-ending chase, circumstances can change, yet you could continue to measure the same thing which is no longer meaningful, and a highly measured system discourages experimentation and innovation because they do not appear on the same scale of measurement or are considered negative.

Professor Hummels demonstrates a disconnect with understanding what is impact. Impact is improving or increasing access to Essential Resources for people. By Essential Resources I mean things that enable people to sustain themselves, express themselves, connect with others, manage change and make decisions.

For more information about more integrated approaches to impact investing, have a look at:
http://piqueventures.com/impact-lens-updated/
http://bonnie.foleywong.com/impact-investing-naturally/

Best regards,
Bonnie Foley-Wong (née Wong), CA, CFA, BMath, MAcc