How Vested Impact enables data-driven impact assessments for micro- and small businesses
This guest post is co-authored by Kim Abbott, CEO and founder of Vested Impact, and Rosie Afia-Ford at Caribou Digital. Vested Impact is building an innovative platform that empowers small businesses to assess and show their impact, enabling them to thrive in the sustainability and Environmental, Social, and Governance (ESG) landscapes.
In today’s business environment, large corporations and financiers are under increasing societal and regulatory pressure to understand and report the impact of businesses — including micro- and small firms — within their supply chains and portfolios. However, this spotlight on transparency poses a significant challenge for small businesses, particularly those in emerging markets, which may lack the skills and resources to report their ESG performance. By lacking transparency about their impact on people and the planet, small businesses risk missing out on significant contracts and funding opportunities.
A staggering 92% of major buying organizations are expected to mandate their small business suppliers to disclose ESG data by 2024. Despite this growing demand, current ESG and sustainability data solutions are often inaccessible, expensive, and do not cater to small businesses’ unique needs. This is particularly the case in underserved regions like the Middle East and North Africa (MENA), Africa, and Latin America.
Armed with a grant from the Mastercard Strive Innovation Fund, Vested Impact is supporting small businesses to leverage its award-winning impact assessment platform. The new platform will give micro- and small businesses access to independent, affordable, and data-driven impact assessments that are tailored to their needs. Three key features make this solution unique to small businesses, especially those in emerging markets.
- Quick, easy, and automated impact assessments: Leveraging its sophisticated algorithm and over 300 million science-based research papers and impact data points, Vested Impact assesses the impact of a business’s products and services on global priorities like climate, education, healthcare, and the economy. It summarizes these results in a detailed report — in just a few minutes — that can be used to inform and attract customers, clients, investors, and regulators.
- AI-powered summary: Understanding and communicating complex impact data can be daunting for small businesses. Vested Impact’s self-trained AI language models translate intricate impact data into easy-to-digest narratives, empowering small businesses to clearly articulate their sustainability efforts.
- Shareable reporting: Adopting a client-centric approach, Vested Impact understands why it’s crucial for small businesses to report and promote their sustainability measures. Small businesses want to understand their impact, identify areas of improvement, and set a positive example in ESG reporting. To simplify this process, the platform enables them to showcase their sustainability data in a standardized and shareable report format, aligning with leading regulations and supply chain requirements.
Why this matters for small businesses
Adopting ESG practices not only opens up new opportunities for small businesses, but also enhances their access to financing and investment. Using Vested Impact’s new platform, small businesses can navigate the complex landscape of sustainability and ESG enabling them to capitalize on new opportunities, attract investment, and promote their commitment to a sustainable future and compliance with complex regulations.
By evaluating the impact of millions of small businesses, Vested Impact aims to create a global evidence base that showcases the positive impact of environmentally sustainable practices worldwide.
What’s next for Vested Impact?
With Mastercard Strive’s support, Vested Impact aims to empower 1.2 million small businesses to get access to affordable and relevant impact information in 2024. To reach that goal, Vested Impact is collaborating with commercial, regulatory, and small business partners to ensure its solution delivers the most value for small businesses and meets them where they’re at.
Interested in the Mastercard Strive Innovation Fund? We’re currently seeking applications from EU organizations developing digital solutions that support small businesses to navigate evolving consumer preferences and regulatory expectations around environmental sustainability.
The Strive EU Innovation Fund is open for applications until 11 March 2024, 12 noon CET. Learn more and apply here!
