Sitawi values and is strongly committed to monitoring and evaluating the impact of initiatives and investments. In constant development, our impact analysis and assessment processes allow some flexibility to contemplate the particularities of each business, but follow the same methodology for defining indicators and monitoring that guarantees robustness and comparability between businesses. Currently, the activities for evaluating investment opportunities are carried out according to the following scheme. Through this process, Sitawi reaffirms its commitment to understanding, monitoring and communicating the socio-environmental impact of the organization and the financed businesses, aiming to provide insights both to partners and founders in their impact investing experiences, as well as to organizations and entrepreneurs in validation and search for the maximization of its impacts.
1. Theory of Change (ToM) aligned with the UN SDGs
We collected and analyzed business and impact data for the initial design of TdM. Logically, we produced the map that illustrates the paths that connect the activities performed by the organization to the respective outputs (outputs), going through the expected results in the short and medium terms, until reaching the effective impact, always in line with the UN SDGs. Throughout the mapping, the risks that may prevent the achievement of impact and the assumptions assumed for the results to be obtained are also pointed out.
- 2. Validation of premises with beneficiaries
We conducted interviews with the organization's beneficiaries to validate understandings of the solution, TdM and the data collected. These conversations are of great relevance, as they also enable a better understanding of the Extent Potential and the Depth Potential of the organization's impact.
- 3. Impact Rating Calculation
After processing the collected data, the calculations of the Rating of the organization's Socio-environmental Impact through a tool developed to quantify and qualify the organization's impact on the different aspects, such as: Extension Potential (number of people reached in absolute terms); Depth Potential (intensity of expected change in beneficiaries' lives); and Impact risks (risks that would prevent the intervention from achieving planned impacts).
- 4. Definition of Indicators in contract
We conduct feedback and validation meetings with those responsible for the business, where we review the reports and insights obtained in the previous stages and validate and make the final adjustments to the organization's TdM. These meetings are also indicators relevant to TdM and the organization's purpose were defined, in addition to the frequency and forms of collecting these reports. The defined indicators are then added to the contract signed with the organization, demonstrating the importance of monitoring and reporting.
- 5. monitoring
During the contract period, indicators are monitored, also requesting periodic submission of relevant facts, news or reports about the organization, its operations and the positive impact generated.