The WASH Impact Valuation Framework (WIFV) presents a new, open-access methodology to measure the societal and business value of WASH access initiatives, as well as their social return on investments (SROI).
Valuing Impact developed this impact valuation framework as a sectorial application of its eQALY impact valuation method (access to tool template and dataset through the eQALY download), which was also inspired by the methodology and whitepaper Beyond Volume presented at the World Water Week in 2022.
The impact valuation framework, shown in the figure below, builds on the WASH4Work list of output and outcomes, from which the valuation methods and factors are developed. The framework covers a wide range of activities, output, and even business value pathways. Business value is an underlying reason why so many companies and investors fund WASH projects, as it guarantees their license to operate. This is why we embedded those pathways in the impact framework as well.
The WIFV has been applied in 30+ countries around the world and countless projects across various WASH activities over the years. All those results helped us define this standardized framework while deriving some very important insight for the professional working on WASH. Those insights are summarized here below at high-level, building on the key figures of the report’s case studies presentation, illustrating the application of the impact valuation method.
The first insight is that our current impact assessment method, building on activities and output, is great for reporting and communication but is less good for understanding the true value to society brought by those projects. Actually, the typical indicators, such as # beneficiaries and m³ of water are not correlated with societal value creation as measured with this framework. As a result, we have to change our standard KPIs metrics to measure the projects impact, or we shouldn’t assume too quickly that because we reach a lot of people, our impact is high. The figure below illustrates this point when comparing societal value (1st column) and the # beneficiaries (2nd column).
The efficiency of WASH investment can also vary tremendously. The Social Return On Investment (SROI) is the ratio between the societal value created and the cost of the project. When calculated over the portfolio of case studies analyzed in this publication, it ranged from 1:0 to 1:26 (26x bigger than the lowest efficiency project, as shown in the figure below). Various projects had SROI below 1:1 which could be challenged from an investment point of view. The funds invested would have probably been better invested somewhere else? Or is there a way to change the project design of those project to make it more efficient? This is best answered when we start looking at the impact profiles of the project (see further below).
The impact profile of WASH investments varies to an extent similar to the results presented above. Some projects even embedded negative impacts next to the expected positive impacts, such GHG emissions and increased costs, alongside positive outcomes like improved health and educational opportunities. For instance, loan projects typically involve payment of interest, which leads to a negative impact on households. Some loans can result in defaults, which also cause negative impacts. Additionally, the use of grey infrastructures has a negative environmental impact due to the materials used (e.g., concrete).
The impact profiles of the projects assessed in this portfolio, as shown in the figure below, show all great differences which can also be interpreted as opportunities to create more impact over the long term, informing a change or improvement of project design. All the projects made significant contributions to health and well-being, addressing one of the most critical issue of inadequate access to water, sanitation, and hygiene, as highlighted in SDG-6
Fundamentally, the WIVF is a tool to be celebrated because it will ultimately inform better investment decisions to improve water access for many communities worldwide.
Ultimately, measuring and valuing the impact of WASH investment can lead to much better and more efficient investment decisions that will scale up our societal impact, so let’s do it!
Watch the report launch webinar presented together with:
Philipp Küst from Reckitt
Mai-Lan Ha and Thérèse Rudebeck from PMI
Paul Reig from Bluerisk
Cheryl Hicks from WASH4Work
Samuel Vionnet and Noelia Pacharotti from Valuing Impact
コメント