Four common beliefs about measuring and financing impact
Europe faces major social and environmental challenges: poverty, housing costs, climate change and unequal access to opportunities. In 2025, 92.7 million people in the European Union, or 20.9% of the population, were at risk of poverty or social exclusion, according to Eurostat.
At the same time, money is limited. Public authorities, investors, foundations and savers all want to know where their money can make the biggest difference. Impact measurement and impact finance try to answer this question.
Many people still believe that good intentions are enough, that measurement is only paperwork, that impact finance is reserved for large investors or that public and private money cannot work together.
Belief 1: "Good intentions are enough to create impact"
Verdict: False.
The facts
A programme can be well designed, generous and still fail. It can miss its target group, be poorly implemented or produce effects that nobody expected. Without evaluation, an organisation cannot know whether the change it observes is really due to its work.
With 92.7 million people at risk of poverty or social exclusion in the EU, every euro spent on a programme that does not work is a euro that does not reach a solution that does.
Compare what happens with and without a programme
Tony Bernard is the managing director of the IMPACT TANK in France. The organisation studies ways to measure social and environmental impact. For Bernard, good intentions do not guarantee good results.
Impact evaluation compares two situations: what happens when a programme is implemented and what would happen without it. This can show whether the programme creates a real difference. Measurement can also help public authorities decide which programmes to support and which ones need to change.
Test, compare and learn
Thomas Escande is the deputy director of EVAL-LAB, which connects academic research with associations and public institutions. His starting point is simple: impact is not automatic. A programme can fail because its design is not suitable, because it is not implemented correctly or because it does not meet the needs of its target group.
EVAL-LAB tests different approaches and compares their results. It also helps associations use the data they already collect. A large scientific study is not always necessary. The right method depends on the size and stage of the project.
Look at the whole system
Sophie Robin is a co-founder of Stone Soup in Spain. The organisation helps social organisations design programmes and measure their impact. She makes a clear distinction: producing 20 podcasts is an activity. If the podcasts help people learn something new, that is an impact.
For Robin, organisations should also look beyond their own work. Social problems involve many organisations, public institutions and communities. Organisations working on the same problem can learn from each other and share their results.
Elsewhere on impact.info
Institute for Social Value (United Kingdom). Isabelle Parasram explains what social value is and why it needs to be promoted.
What is social value and why set up an institute to promote it?ESADE Center for Social Impact (Spain). Lisa Hehenberger explains how research can improve business practices.
Why Research Can Be Key to Improving Business Best Practices?
Belief 2: "Measuring impact is just paperwork"
Verdict: False, when the data is used.
The facts
European companies now report more information about their environmental and social performance. The Corporate Sustainability Reporting Directive (CSRD) requires large companies to publish data on climate, resources, workers and governance. In 2025, EU institutions agreed to simplify it and limit it to companies with at least 1,000 employees and more than 450 million euros in turnover.
For associations, the problem is often the opposite: each funder asks for different indicators, which creates heavy administrative work and makes results hard to compare.
Share indicators between funders
Leïla Bordie-Randera works with the opération milliard on measuring social value. The initiative is developing common indicators for the organisations it supports, in areas such as social value, the just transition and participative governance. It also builds specific indicators with each organisation, so that measurement reflects its own activities and objectives.
Turn reporting into decisions
Patrice Hiddinga is the president of Ascend Tech in France. For him, sustainability reporting should not become a simple administrative task. Companies should use the information they collect to identify risks, set priorities and change their practices. The next report should then show what has changed.
Elsewhere on impact.info
Simmons & Simmons (France). France Vassaux, a partner at the law firm, explains why greenwashing needs to be regulated.
Why Greenwashing Needs Regulation
Belief 3: "Impact finance is only for large investors"
Verdict: False.
The facts
In France, solidarity savings reached nearly 30 billion euros at the end of 2024, held by about two million savers, according to the FAIR barometer. This still represents less than 0.5% of French savings.
Many savers do not know what their money finances. Terms such as "green", "sustainable" or "responsible" are often hard to understand. And some groups invest much less than others: according to Women Investors Club, women invest 40% less than men.
Make responsible savings easier to understand
Aurore Pinon-Jacques is a co-founder of Goodvest in France. The company helps individuals invest their savings in financial products with environmental and social objectives. It selects products using criteria such as fossil fuel exposure, carbon emissions and biodiversity. European rules are also changing to improve information on sustainable financial products and reduce misleading claims.
Invest directly in impact companies
Lita is a French crowdfunding platform. It allows citizens to invest directly in companies and projects with social or environmental objectives, such as social enterprises, renewable energy projects and local businesses. Investors can see where their money goes and what the funded organisations are trying to achieve.
Close the gender gap in investment
Lena Perepelova founded Women Investors Club in Spain. The organisation helps women learn about investment and make financial decisions. Several factors explain the gap: financial knowledge, confidence and access to investment networks. Women Investors Club uses financial education, role models and peer support to help women become more familiar with investment.
Elsewhere on impact.info
FAIR (France). Clémence Vaugelade explains how solidarity savings can help change the world.
Why Investing in Solidarity Savings Helps Change the World?Cirineo (Spain). Nacho Guitard explains why knowing where your money goes can encourage you to donate more.
Why Knowing Where Your Money Goes Can Encourage You to Donate More?Moneykiiz (France). Julidé Ninek explains why financial education should start in childhood.
Why Strengthening Financial Education from Childhood is Important?
Belief 4: "Public and private money do not mix"
Verdict: False.
The facts
The impact investing market reached 1.571 trillion US dollars in assets in 2024, managed by more than 3,900 organisations, according to the Global Impact Investing Network (GIIN). This was 35% more than in 2022.
Public money, private investment and philanthropy have different rules and goals. When they work together, they can finance projects that none of them would finance alone.
Invest in the needs of a region
Jari Moate is investment director at Bristol & Bath Regional Capital in south-west England. The organisation invests in projects that respond to local economic, social and environmental needs: renewable energy, affordable housing, community facilities and circular economy businesses. Local investment connects financial resources with the needs of a specific area.
Build trust between funders and projects
Davina MacPhail is the founder and CEO of Naturally Connected. She works with investors, founders, researchers and non-profit organisations. In impact finance, these groups often work separately. MacPhail organises opportunities for them to meet and visit projects together, so that investors understand the problems they want to finance.
Combine public and private funding in a crisis
The Welcome Alliance Fund was created in Germany after Russia's full-scale invasion of Ukraine in 2022. It supported organisations helping migrants and refugees. The fund combined money from public institutions, foundations and companies. This provided more flexibility while keeping public oversight.
Ask for evidence and plan for scale
Patrick Hoffmann is head of public affairs and social responsibility at Generali Deutschland and leads The Human Safety Net in Germany. Before supporting a programme, the foundation looks at the evidence and asks whether results can be reproduced elsewhere. It also considers what happens after its own funding ends, so that a useful programme can connect with public services or other long-term funding.
Elsewhere on impact.info
SpainNAB (Spain). Mercedes Valcárcel explains why impact investment can make a difference for a company.
Why impact investment can be a differentiating factor for a company?Cofides (Spain). Raúl Sánchez explains why public institutions continue to invest in impact.
Why Continue Investing in Impact?
What they have in common
The four beliefs share one point: they separate money from results. The 12 initiatives in this dossier connect them.
They measure what changes for people, not only what organisations do.
They make information clearer, for funders, companies and individual savers.
They bring together actors who often work apart: researchers, associations, investors, foundations and public authorities.
These initiatives come from France, Spain, Germany and the United Kingdom. They respond to challenges shared across Europe. Many more can be discovered on impact.info.
Understand what works, finance it and help it reach more people: that is the shared goal.
