Evaluating Impact Investing through a Systems Thinking Lens: Hallmarks of a Transformational Approach

Abstract

As impact investing increasingly aspires to drive systemic change, the question of how to evaluate such efforts remains underexplored. Traditional evaluation approaches often grounded in linear causality and program-level outputs, and struggled to capture the complexity, interdependence, and emergent nature of systemic transformation. This thesis investigates how systemic investing can be evaluated by integrating systems thinking, evaluation theory, and investing practice. It develops a conceptual framework of thirteen hallmarks that characterize systemic investing evaluation across dimensions such as time horizons, stakeholder engagement, cross-sector collaboration, and capital dynamics. Drawing on 46 real-world cases, the research identifies 112 indicators to make these hallmarks observable and assessable in practice. To support practical application, the thesis also introduces an AI-assisted scoring tool that automates the evaluation of narrative content using the framework. Together, these contributions aim to support more reflective, adaptive, and system-aware evaluation practices in the emerging field of systemic investing.