The social impact can be measured using a range of indicators, such as the number of people impacted, the extent of behavioral change, or the value of environmental benefits created. The financial investment can be measured in monetary terms, such as the total amount invested, the cost per beneficiary, or the revenue generated.
tep 1: Identify the stakeholders
The first step is to identify the stakeholders who are impacted by the project. This includes the local community, regulatory authorities, environmental organizations, and investors.
Step 2: Identify the inputs and outputs
The next step is to identify the inputs and outputs of the project. Inputs include the resources invested in the project, such as capital, labor, and materials. Outputs include the direct and indirect benefits of the project, such as energy generation, greenhouse gas reductions, and community benefits.
Step 3: Identify the outcomes
The outcomes of the project refer to the changes or impacts that result from the inputs and outputs. These outcomes can be both positive and negative and may include changes in social, environmental, and economic factors.
Step 4: Quantify the outcomes
The next step is to quantify the outcomes in monetary terms. This involves assigning a value to the outcomes based on their economic, social, and environmental impact. For example, the value of greenhouse gas reductions can be calculated based on the cost of carbon credits.
Step 5: Calculate the SROI
The final step is to calculate the SROI by dividing the social value created by the project by the cost of the investment. This provides a ratio that indicates the social return on investment. For example, if the SROI is 3:1, it means that for every dollar invested, there is a return of three dollars in social value.
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