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.
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