Double Bottom Line Investment Methodologies

As a tool of investment, double bottom line methodologies are a relatively new concept for socially consicous investors. As the distinctions between several kinds of investors start to blur, the focus has shifted on measuring social returns.

Measuring double bottom line investments is limited by several factors including the lack of established standards and best practices. The Double Bottom Line Project supported by the Rockefeller Foundation aims to help practitioners apply a rigorous and useful method to assess social returns.

The recommendations are found in the publication, “Double Bottom Line Project Report: Assessing Social Impact in Double Bottom Line Ventures.” The report provides a complete analysis of different methods, as listed below:

Theories of Change as applied by New Schools Ventures Fund

Balanced Scorecard as applied by New Profit Inc.

Acumen McKinsey Scorecard as applied by Acumen Fund

Social Return Assessment as applied by Pacific Community Ventures

AtKisson Compass Assessment for Investors as applied by Angels with Attitude

Ongoing Assessment on Social Impacts as applied by REDF

Social Return on Investment as applied by REDF

Benefit-Cost Analysis as applied by Abt Associates and AmeriCorps

Poverty and Social Impact Analysis as applied by the World Bank

Each tool is classified further by applicability to a ‘Process’, ‘Impact’ or ‘Monetization,’ as well as where its primary application lies — with non-profits or for-profits. Further, the report goes into details of how each tool has been applied, drawing from each principal user’s experience.

Read the complete manual here.