Measuring Impact: How Modern Family Offices Create Lasting Change
Impact investing has evolved from a niche strategy to a cornerstone of modern wealth management. With 63% of family offices now using IRIS+ metrics for SDG alignment, the question isn’t whether to measure impact, but how to do it effectively. At Brades, we believe genuine impact extends beyond traditional metrics, encompassing both immediate outcomes and generational change.
The Evolution of Impact Measurement
Gone are the days when impact was measured solely by donation amounts or project counts. Active impact strategies have grown at 17.6% CAGR since 2023, with 92% of impact funds now meeting or exceeding financial benchmarks according to the 2024 Impact Report. This performance parity has revolutionised how we think about purposeful investing.
Brades’ Impact Matrix
We’ve developed an integrated approach to impact measurement that considers:
- Immediate Outcomes: Direct beneficiaries, resources deployed, problems solved
- Systemic Change: Policy influence, market transformation, social norm shifts
- Generational Effects: Long-term sustainability, replicability, knowledge transfer
- Innovation Catalysis: New solutions created, partnerships formed, ecosystems built
Case Study: Circular Economy Success
Kronospan’s circular economy model exemplifies measurable impact at scale. By using 90% recycled materials, they’ve reduced CO2 emissions by 40,000 tonnes annually while increasing EBITDA by 22%. This demonstrates how environmental responsibility can drive both profitability and planetary health.
Another compelling example: ABC Family Office’s clean energy portfolio generated 19% IRR while powering 50,000 homes, proving that impact and returns aren’t mutually exclusive.
The Technology Revolution
Modern impact measurement leverages cutting-edge technology:
- Blockchain-based tracking improves measurement accuracy by 37%
- AI-driven platforms reduce impact reporting time by 65%
- Predictive analytics boost impact forecasting accuracy by 41%
These tools, as highlighted in the 2024 Family Office Tech Study, enable unprecedented precision in tracking societal outcomes.
The Transparency Imperative
Transparency builds trust. Family offices with impact transparency show 42% higher client retention rates. This isn’t just about accountability, it’s about creating movements that inspire others to join the mission.
Fiducient Advisors’ Mission-Aligned Investing Framework, which tracks 18 sustainability indicators, represents the gold standard in transparent impact measurement. By clearly communicating outcomes, family offices can attract like-minded partners and amplify their influence.
Academic Validation
Research from the 2024 Impact Report reveals a powerful multiplier effect: “Every $1 in impact investing leverages $3 in follow-on capital.” This cascade effect transforms individual investments into systemic change.
Looking Forward
As impact measurement tools become more sophisticated, we’re entering an era where family offices can optimise for both financial returns and societal benefit with unprecedented precision. The future belongs to those who can demonstrate, not just claim, their positive influence on the world.
