Sustainable Development Goal (SDG) financing gaps are estimated to be between 2.5 and 4 trillion US dollars per year. Over the past decade, my work in the development sector has focused on designing and evaluating projects across various sectors to identify what works, what does not, and where successful practices can be scaled for greater socio-economic impact. While much of this work has been donor funded and implemented by development actors, the private sector is increasingly stepping into the spotlight, with investment flows—both public and private—being redirected toward global development challenges framed around the SDGs.
This shift has revealed an emerging collaboration between development practitioners and the private sector, as both share a common goal of addressing global challenges through sustainable and impactful approaches. However, an obstacle remains: while many businesses are increasingly aware of the importance of contributing to social good, they often struggle to measure and demonstrate how their efforts are directly contributing to global development outcomes.
The Challenge of Measuring Impact
As SDG practices gain momentum, one question consistently arises: If we have a strategy that clearly articulates the type of change we seek to elicit, how can we accurately attribute SDG-related outcomes to our specific interventions and work?
This is no small task. In fact, it is a challenge made even more daunting by the rise of “impact washing,” a phenomenon gaining prominence in the West. Many companies have mastered the art of crafting polished Environmental, Social, and Governance (ESG) strategies and SDG goals, often using metrics that prioritize optics over substance. These efforts can make environmentally, or socially harmful practices appear palatable, rather than driving real, measurable change.
While this trend has already taken root in Western markets, the MENA region is at a unique inflection point. ESG and SDG-focused alignment are only beginning to gain traction here, presenting a rare opportunity. Unlike their Western counterparts, MENA countries have a chance to sidestep the pitfalls of superficial metrics and impact washing. Instead, they can leapfrog directly to developing frameworks that prioritize tangible, measurable impact.
The Power of Evidence-Based Methods and Impact Measurement
This is where we bring in Impact Measurement and Management (IMM): a structured approach that helps organizations not only track their contributions to social and environmental outcomes but integrate these insights into decision-making to maximize impact. At INTEGRATED, we have seen how IMM has the potential to provide businesses with the frameworks and tools they need to move beyond broad ESG narratives and toward concrete, evidence-based outcomes tied to the SDGs.
Moving beyond IMM frameworks, to what extent can its principles credibly attribute outcomes to specific interventions, while accurately capturing the true effects of corporate decisions, operations, and investments on communities and the environment?
Credibly linking an intervention to observed changes normally requires rigorous, evidence-based methodologies, with Randomized Controlled Trials (RCTs) standing out as a gold standard in the development sector. In the Monitoring, Evaluation, and Learning (MEL) world we frequently use RCTs in impact evaluations when organizations seek concrete proof that their programs are making a measurable difference. But there are simpler approaches to demonstrate impact, such as benchmarks, which enable measurement of real change vis a vis a “business as usual” approach.
How would this work in practice?
Consider a telecommunications company launching a digital literacy program aimed at improving employment opportunities in underserved communities. If job placements increase after the program, how can the company be certain that its intervention caused the improvement? By comparing outcomes between a control group (those not exposed to the program) and a treatment group (those who participated), an impact measurement reveals the counterfactual—what would have happened without the program.
This approach and others can be applied to the private sector, enabling businesses to confidently demonstrate their impact. It also adds a crucial layer of credibility, especially for investors who are focused on and care about measurable social and environmental returns. A simple tracer study and benchmarking against national standards can demonstrate an impact level change with clear evidence of causality.
What is to Come?
Many businesses lack the frameworks, tools, and expertise needed to measure and communicate their contributions effectively. This transition requires simple but effective tools in telling the story of impact and accountability. Businesses familiar with Key Performance Indicators (KPIs) can easily transition to this mindset of impact measurement so that we are all able to engage in a private sector world that is able to focus on people, planet, and profit.