Impact valuation

We have worked with EY to analyze “impact pathways” from what a program or product does to its desired social goals, starting with the impact driver (see Value creation in the Introduction to this section). In the Santa Marta example (shown below), that first step on the pathway is professional skills training or renovation and painting activities. For Dulux Forest Breath (also shown opposite), it is the reduction of indoor exposure to formaldehyde.

Theory of change

The second step on the impact pathway is the societal outcome, including the direct effects of the business activities. For “Let’s Colour”, societal outcomes are the improvement of skills and self-esteem, and increased (self) employability opportunities. For Dulux Forest Breath, it’s the availability of the active substance to clean the air in painted rooms and so reduce the exposure of residents to formaldehyde and other organic pollutants.

The outcomes then result in the third step on the pathway – the societal impacts – which are changes in society resulting from the activities. For “Let’s Colour”, this could be changes in the well-being of individuals and communities. For Dulux Forest Breath, it’s the reduction of formaldehyde inhalation. Using macro-economic data, we were able to quantify in monetary terms the positive impact that our products and programs brought to society in 2017.