Monetizing sustainability

Purpose and goal:

This longitudinal research project extends current understanding of the implementation of new calculative practices. While prior studies have focused on the development of calculative practices, little has been said on the challenges of implementation. In the context of impact investing, monetization practices have been expected to improve the integration of sustainability on financial markets by measuring and aggregating impact through monetary values. This study thus followed an impact fund’s own journey in implementing impact monetization.

Expected results and effects:

Impact monetization has been expected to improve the integration of sustainability into financial decision making. Our study however reveals that the development of this calculative practice is dependent on the goals and perspectives of stakeholders. For impact specialists, the implementation of monetization is a difficult process which requires to navigate complex and contradictory information.

For investment professionals, the lack of standardization is a hurdle for using it in investment decisions. The perceptions of the fund’s investors range from curious to sceptic. Approach and implementation:

This study relies on a two-year qualitative study of an impact fund, as it attempted to implement the monetization of impact. Following case study methods, data collection consisted of 31 interviews with the impact fund and its stakeholders, 9 participant-observations of impact team meetings, and multiple archival data such as spreadsheets, impact reports and other internal communications reflecting monetization attempts.

Further data analysis and theorization are ongoing as the researchers are aiming to publish their results in an organizational and management journal.