Pluralistic Value Assessment
Discussion
The Ontology of Value: Beyond Returns to Theories of Change
Benjamin Life:
"A further evolution of the core logic of impact investing requires a transition from merely the measurement of outcomes towards a fundamental reconsideration of value itself. Drawing from Donella Meadows' pioneering work in systems thinking, truly transformative impact investing recognizes that interventions must address not just symptoms but leverage points within complex adaptive systems. As Meadows argued, "People who manage to intervene in systems at the level of paradigm hit a leverage point that totally transforms systems."
This systems-oriented approach shifts impact investing from a transactional frame ("what returns will this generate?") to a transformational one ("how does this intervention shift the underlying dynamics of the system?"). Such investing requires articulating robust theories of change—coherent explanations of how specific actions create desired outcomes through causal pathways within complex systems.
Effective theories of change in impact investing:
- Identify system boundaries and interactions - Recognizing that interventions affect not just target populations but networks of relationships and feedback loops
- Locate leverage points - Finding places within systems where small shifts can produce large changes, what Meadows called "places to intervene in a system"
- Account for time delays and feedback - Understanding that effects may be non-linear and emerge long after interventions
- Recognize emergence and self-organization - Acknowledging that systems have properties that cannot be reduced to their components
For example, rather than simply measuring the number of affordable housing units created, a systems-oriented impact investor might examine how their capital affects the broader dynamics of housing markets, including displacement pressures, community stability, wealth-building pathways for historically marginalized groups, and infrastructure development patterns."
(https://omniharmonic.substack.com/p/beyond-narrow-optimization?)
Tools
Benjamin Life:
"The measurement of heterogeneous forms of value is not merely aspirational—it is already happening in increasingly sophisticated ways:
Impact measurement frameworks. Tools like the Ecological Benefits Framework (EBF) provide structured approaches to assessing ecological and social impact across different domains. When combined with verification technologies like those described above, these frameworks enable credible impact claims that investors and communities can trust.
Blended finance structures. Innovative financial vehicles combine different types of capital with different return expectations. For example, catalytic capital—investment that accepts higher risk or lower return to catalyze positive impact—can de-risk more conventional investment, creating layered capital stacks that serve multiple objectives simultaneously.
Outcomes-based financing. Mechanisms like Social Impact Bonds and Environmental Impact Bonds tie financial returns directly to verified outcomes. For instance, an environmental impact bond might pay investors based on measured reductions in stormwater runoff, creating direct financial incentives for ecological restoration.
Community-driven metrics. Locally-defined indicators allow communities to articulate what they value rather than having metrics imposed from outside. For example, the Happiness Index in Bhutan and community wellbeing indicators in indigenous communities provide alternatives to GDP as measures of success.
These approaches demonstrate that pluralistic value assessment isn't merely theoretical—it can drive concrete investment decisions and create verifiable returns beyond the financial. The key innovation lies in recognizing that non-financial returns aren't merely "feel-good" additions but can be measured, verified, and incentivized with precision."
(https://omniharmonic.substack.com/p/beyond-narrow-optimization)