How to Measure & Communicate Your Startup’s Social Impact

In the world of impact investing, numbers speak louder than words—especially when those numbers tell the story of real-world change. But how do you quantify something as inherently qualitative as social impact? And how do you distinguish between vague, impact-washing statements and actual, measurable impact? And once you’ve gathered the data, how do you present it?

1. Start with the Basics: Define Your Impact Metrics

Before you can measure impact, you need to know what you’re looking for. The key is to align your metrics with your mission. If your startup’s goal is to reduce carbon emissions, your impact metrics should reflect that—think tons of CO2 saved, the number of trees planted, or energy saved in kilowatt-hours. Similarly, if your mission is to improve access to education, you might measure the number of students reached, the increase in graduation rates, or improvements in test scores.

Pro tip: Focus on a few key metrics that genuinely represent your impact rather than drowning in a sea of irrelevant data. Remember, quality over quantity. According to a Global Impact Investing Network (GIIN) survey, nearly 80% of impact investors look for alignment between financial returns and impact goals, so nailing these metrics is crucial.

2. Use Impact Frameworks (Without Getting Lost in the Jargon)

Frameworks like the IRIS+ by GIIN or the Social Return on Investment (SROI) can help standardize your impact measurement. These frameworks provide a structured way to calculate your social impact and communicate it effectively. But remember—don’t get too caught up in the jargon. The goal is to make your impact understandable to your audience, not to confuse them with technical terms.

Here’s a stat to consider: A report by B Lab shows that certified B Corpsgrew 28 times faster than the national average in 2021. Why? Because they communicated their impact clearly and authentically.

3. Track Your Progress with Precision

Once your metrics are set, it’s time to gather the data. This isn’t just about putting numbers on a spreadsheet—it’s about capturing the ongoing story of your impact. Whether you use specialized impact measurement tools or track KPIs in-house, consistency is key. Track your metrics regularly to stay on top of your progress.

Did you know that 91% of global consumers expect companies to do more than make a profit? They want to see real, measurable change. This is your chance to show them the impact you’re making.

4. Communicate with Clarity & Confidence

Once you’ve got your data, it’s time to share it with the world. But how do you do that? The secret is in the storytelling. Frame your impact as a journey rather than a destination. Use real-world examples, case studies, and testimonials to bring your numbers to life.

For instance, instead of saying, “We reduced 1,000 tons of CO2,” try, “We reduced 1,000 tons of CO2, the equivalent of taking 215 cars off the road for a year.” Contextualizing your data makes it more relatable and impactful. Similarly, if your focus is on education, rather than stating, “We reached 500 students,” you could say, “We reached 500 students, improving their reading skills by an average of two grade levels.” Contextualizing your data makes it more relatable and impactful.

And don’t forget to be transparent about your challenges and learnings. Investors appreciate honesty—they know impact journeys are rarely smooth sailing. When it comes to customers, Edelman’s Trust Barometer, shows that 63% of consumers buy or advocate for brands they believe to be transparent.

5. Keep Evolving & Engaging

Impact isn’t a one-time report; it’s an ongoing process and conversation. Regularly update your stakeholders on your progress, celebrate your wins and share your plans for the future. Engage with your community and invite feedback. Impact investors and customers alike value companies that are constantly striving to do better.

According to Deloitte, companies with strong ESG (Environmental, Social, and Governance) practices had 2.6 times higher returns than those with weaker commitments. The message is clear: continuously evolving your impact strategy is not just good for the planet—it’s good for business too.

That’s All, Folks!

Measuring and communicating your startup’s social impact is a lot of work but it is worth it. By focusing on relevant metrics, tracking progress with precision, using impact frameworks wisely, and communicating with clarity, you’ll not only be more likely to attract impact investors but also build a loyal community of supporters and brand advocates.