How To Quantify Your Impact

The Global Stocktake and Impact Measurement

COP28 came to an end this week, with the industry hoping that this will be the one to make its mark. Central to COP28 was the review of the world's first 'Global Stocktake', which led to an agreement that is said to signal the "beginning of the end" of the fossil fuel era, emphasising the need for deep emissions cuts and scaled-up finance to facilitate a swift, just, and equitable transition away from fossil fuels.

The stocktake recognised the need to cut global greenhouse gas emissions by 43% by 2030 (compared to 2019 levels) to limit global warming but noted that parties are currently far off track in meeting their Paris Agreement goals. Therefore, it serves as a major call for countries to develop stronger climate action plans by 2025, with an overarching aim to keep the global temperature limit of 1.5°C within reach.

To get to this point, an all-encompassing analysis of the impact of existing climate actions was conducted in a multi-faceted and collaborative process involving several key entities. Accurate and comprehensive impact assessment is crucial because it provides a clear picture of where we stand in terms of our collective climate goals and what further actions are needed.

In light of this, we're thrilled to announce that Preoptima has received its Impact Measurement Certificate from Google as part of the Google Startups for Sustainable Development Impact Academy. This certification is a testament to our commitment to sustainability and our efforts to quantify and reduce the carbon footprint of the built environment.

In this edition of our newsletter, we delve into how we learned to measure our impact against the Sustainable Development Goals (SDGs).

Outputs, Outcomes, and SDGs

Without further ado, let's get straight into it.

Start by looking at all of your business activities. List?the beneficiaries of these business activities (i.e. who or what is affected by the activity) and their geography. Then, determine the outputs (the immediate tangible result of the activity) and the outcomes (the broader and mid-term/ long-term changes or effects that occur as a result of the business activity and outputs). The outcomes that you identify ultimately reflect the overall intended impact of your activities or initiatives.

Outputs can include:

• The number of beneficiaries
• Units of products sold
• Partnerships or collaborations
• Jobs created
• Training or education programmes delivered

While outcomes can include:

• Carbon emissions reductions
• Energy efficiency improvements
• Waste diversion rate Biodiversity conservation Health and wellbeing
• Education and awareness

Ensure that the outputs and outcomes that you identify are SMART (specific, measurable, attainable, relevant, and time-bound) so that they can be easily quantified.

The expected outcome (intended impact) that you identify will allow you to determine which SDG and specific targets you address. For example, one of Preoptima's outcomes was "significant avoidance of carbon emissions through early-stage design optimisation", which falls under the impact 'CO2 reduced' and SDG 13 (Climate Action) target 13.2 (Integrate climate change measures into national policies, strategies and planning) according to the Google Impact Academy.

Quantifying Your Impact

You've set the base and can now start with the process of quantifying your impact in a structured way. We suggest creating a table with the following information:

1. Select a relevant SDG and target
2. List the beneficiaries
3. State the expected outcome (based on the output of a business activity)
4. Formulate a metric for that outcome (a way to measure it)
5. Specify the unit of measurement for the metric
6. Identify the internal and external data points needed for measurement?
7. Construct a formula based on the identified data points (ensure consistency across units and scales)
8. Use the formula to calculate your impact!

Here is an example of what we used to construct a formula and identify data points for our impact measurement.

We will continue to adapt and refine our impact metrics as we grow, with systems in place to collect internal data and our team continuously monitoring the collection and release of external industry data.

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Some Key Considerations

Here are some key considerations to take when quantifying your impact:

• Remember to remain conservative, especially when historical data is lacking.
• Set baselines and targets so that you can track your progress and assess the effectiveness of your efforts.
• Consider your attribution vs. contribution. Attribution is?the establishment of a causal link between (parts of) an observed change and a specific intervention. Contribution is the idea that your influence is just one of many factors that contribute to change.
• It is good practice to establish a robust data collection process and tracking system, making it easier to review and update your impact metrics as you go.?

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Remember, sustainability is a journey in which there are no false starts. Get started with whatever information you have at your disposal and you can continue to refine your working along the way.

We're excited to see our global impact grow. Best of luck with your impact measurement!?