How to measure Social Governance Impact?

Abstract

Social sustainability is increasingly important for companies’ reputations and investment appeal, but measuring it—especially at the asset level—remains challenging due to its abstract nature. Without universal standards, companies should create tailored metrics by translating their social missions into clear, time-bound objectives and using impact pathways to connect inputs, processes, outputs, and impacts. Engaging diverse stakeholders can further improve the relevance and objectivity of assessments. The Social Return on Investment (SROI) framework is a valuable tool, assigning monetary values to social changes and comparing them to investment costs, thus quantifying the social value created per dollar spent and supporting transparent reporting to investors.