Unlocking the Power of Impact Valuation in Due Diligence - and Webinar

- Webinar recording available at the bottom of the page

Impact investing is a quickly growing field and is also moving from early-stage wishful thinking towards professionalization. This means that experts' guesses and simple checklists won’t work anymore moving forward. Risk-Return-Impact needs to be assessed quantitatively on the same basis.

At Valuing Impact, we believe this third dimension—impact—must be equally measurable, comparable, and actionable. Our latest webinar showcased how we use impact valuation as a core tool in investment due diligence to uncover hidden value, optimize decision-making, and align portfolios with societal goals.

Why Impact Valuation?

Traditional ESG and impact assessments often fall short regarding decision usefulness. While outputs like tons of CO₂ avoided, # farmers reached with loans or training hours delivered are tracked, they rarely translate into meaningful comparisons across investment types. That’s where our proprietary eQALY method comes in.

Built on global frameworks and refined through over 400 projects, eQALY converts social and environmental performance into a single, monetary measure of societal value. This enables investors to compare impacts across sectors, asset classes, and timeframes—just as they would with financial metrics. It also allows them to uncover the drivers of impact that are material to embed into a deal agreement, to maximize profit and impact.

A Due Diligence Process, Reimagined

We presented a recent due diligence case where Valuing Impact supported the structuring of an investment portfolio. Over a short 3–4 week period, our team gathered available data, supplemented it with secondary research, modeled impacts using our eQALY Excel template, and provided normalized insights (via SROI and IMOIC) that supported decision-making.

Instead of focusing only on risks, we surfaced opportunities for higher impact returns—allowing the investor to balance traditional ROI with social and environmental value.

From S&P 500 to Food Security

One of the most powerful parts of the webinar was comparing impact returns across investment scenarios, using drastically different examples: a passive investment in the S&P 500, an active engagement with the Food Securities Fund by Clarmondial, and two NGOs (grants) aiming at optimizing the impact profile of the portfolio.

Our S&P 500 analysis showed a net societal value of $3.7 million, mostly driven by social capital (taxes, products and services, utility, and to a lesser extent, job creation). However, this came at the expense of natural capital degradation, and the overall impact ratio stood at just $0.70 per dollar invested. Without additionality or intentionality, this type of portfolio offers low- or no-impact leverage.

In contrast, the Food Securities Fund, managed by Clarmondial, demonstrated strong human and natural capital performance. Gains came from increased farmer income, ecosystem restoration, and sustainable land practices. While social capital was modest and data limitations remain, the fund’s proactive approach and targeted interventions generated significantly higher SROI (i.e. impact return), especially over longer horizons. This type of impact fund delivers both strong financial and impact returns, which is a sweet spot for impact investors.

Not Just Data—Decisions

The goal of impact valuation is not to produce a report, but to inform better decisions and strategy. Marcus Bleasdale of Wilstar AS emphasized how impact valuation helped his family office integrate impact into the core of investment screening and active management. Tanja Havemann of Clarmondial reflected on the insights this process provided on fund performance and how it could support conversations with investors and LPs about optimizing for both financial and impact returns.

From identifying gaps in living wages to quantifying the value of skills development, the results sparked realignment of management priorities and enhanced portfolio design.

Impact Thinking in Action

Our work does not end with the numbers. Impact valuation is part of a broader shift we call “Impact Thinking”: a mindset that starts with purpose, uses data for insight—not just compliance—and embeds impact into every investment choice.

To support this, we offer more than services: open-source tools, a learning ecosystem, and an integrated methodology (eQALY) that clients can adopt internally. Transparency and knowledge transfer are at the heart of our value proposition.

What’s Next?

As we scale this approach across sectors and geographies, one thing is clear: investors are no longer content with knowing what they invest in—they want to know what it changes. And they need robust, comparable, and strategic ways to find out.

Whether you’re a fund manager, foundation, or family office, we invite you to explore the role of impact valuation in your work. Let’s move beyond ESG scores and compliance checklists, toward investments that generate meaningful value for society and the planet.