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New Research Shows Demand for Enhanced Investor Collaboration

A recent report from the Impact Capital Managers (ICM) Institute has shed light on the crucial role of impact data in the business strategies of portfolio companies. This nonprofit research initiative seeks to bridge the gap between companies and their investors, underscoring the importance of collaboration in unlocking the full potential of impact data.

The study, which surveyed nearly 100 companies, highlights a growing recognition among business leaders about the value of impact measurement. A notable 76% of participating companies indicated that impact data is valuable or highly valuable for their operations. The primary applications of this data include goal setting (75%) and gaining insights into customer needs (70%). This finding suggests that businesses are beginning to leverage impact measurements not just as a compliance requirement but as a strategic asset that drives decision-making.

Despite this awareness, companies still face challenges in managing their impact data effectively. Approximately 46% of respondents cited time constraints, while 35% mentioned insufficient funding and resources as barriers to maximizing the utility of their impact data. This reality points to a critical need for enhanced support from investors, especially in the form of technical assistance and funding for developing robust internal impact measurement and management (IMM) systems.

The ICM Institute's research emphasizes that there is a strong desire among companies for increased collaboration with their investors. Approximately 87% of companies expressed that additional support from investors would be valuable, with calls for funding to improve their internal systems being particularly pronounced. This demand illustrates a critical opportunity for investors to play a more significant role in supporting the impact measurement practices of their portfolio companies.

The report also provides compelling case studies from a variety of sectors, including technology, healthcare, education, and climate solutions. Companies such as Kadeya, TemperPack, and OpenClassrooms serve as examples of how standardized metrics and clear communication between investors and companies can facilitate improved usage of impact data. Clear expectations, consistent metrics, and constructive feedback loops are key to harnessing impact data’s full potential, yielding enhanced customer engagement and a stronger operational framework.

Marieke Spence, the Executive Director of ICM, highlighted the crucial finding that while companies increasingly see impact data as a source of genuine business value, they also recognize a significant gap in their current support structures. With over 80% of companies seeking greater input from their investors, it is essential for all stakeholders—limited partners (LPs), general partners (GPs), and service providers—to unite on data collection priorities, their significance, and practical usage.

As the market for impact investing continues to expand, with recent evaluations placing its size at over $1.5 trillion and experiencing a 21% annual growth, the need for aligned reporting practices becomes even more vital. By ensuring that impact data can operate as a shared resource, rather than merely a reporting obligation, both companies and investors stand to benefit significantly.

Susan Mac Cormac of Morrison Foerster echoed the report's insights, highlighting how understanding impact measurement is crucial to navigating the rapidly changing landscapes driven by climate change and technological advancements in sectors like AI. This research underlines a direct correlation between effective impact measurement and the resulting value for companies, especially younger organizations that are adept at bridging operational gaps to enhance overall efficiency.

In summation, the findings from the ICM Institute not only paint a vivid picture of the current landscape of impact investing but also act as a robust call to action for all parties involved. By fostering greater collaboration and focusing on meaningful communication around impact data, investors can empower their portfolio companies to excel and promote sustainable growth. Therefore, a comprehensive understanding of impact data and its strategic implementation is imperative for the future of impact investing.

This initiative, launched in April 2025, involved detailed surveys and follow-up interviews with companies across diverse sectors worldwide, ensuring a comprehensive look at current practices and future needs in impact data management. The insights garnered will serve as foundational guidance for both investors and companies aiming to align their objectives effectively.

For those interested in learning more about the ICM Institute’s ongoing research and practical applications in the field of impact investing, further information can be obtained through their various publications and collaborative projects with industry leaders.