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Developing a common standard would be one of the best ways of expanding economic opportunity.
Two decades ago, my Harvard students asked how to get to Wall Street. Today, they ask how to make money and make a difference. An entire industry has grown around that ambition. The Global Impact Investing Network in 2024 estimated that nearly 4,000 organizations managed $1.57 trillion in impact investments worldwide. Their promise is to deliver financial returns while improving lives. How they measure the second part varies considerably.
The quantity of students educated, Medicaid patients treated or carbon emissions avoided can tell an investor about a company’s work. But how should he compare those outcomes in deciding where another million dollars would do the most good?
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Roland G. Fryer, Jr., is a senior fellow at the Manhattan Institute, is Professor of Economics at Harvard University, an entrepreneur, and co-founder of Equal Opportunity Ventures.