In the last decade, we have witnessed a dramatic rise in interest around “impact” from an incredibly diverse range of stakeholders—from innovative social enterprises to large investment funds, and from multinational corporations to boutique financial institutions. As market demand for impact data, insights, and reporting grew exponentially, a completely new narrative emerged. This quest for sustainability became so central that European institutions introduced a comprehensive normative framework to establish clear, transparent criteria for accountability and to promote sustainability into European financial and business models.
The implementation of this EU regulatory framework – from SFDR to CSRD through Taxonomy – has been a fundamental milestone for the maturity and credibility of sustainable claims. These new legal requirements have pushed investors and companies toward greater prudence and rigorous accountability. Following the initial “impact infatuation”—symbolized by Larry Fink’s famous letters to shareholders and the subsequent explosion of hundreds of ESG/Impact-labelled funds—we are now looking at a more mature European market. It is a market that continues to grow, but at a more deliberate and realistic pace.
The development of the EU sustainable finance framework, including the SFDR, CSRD and EU Taxonomy, has marked an important step towards greater transparency and accountability in sustainability-related information.
For Human Foundation, this evolution is part of our DNA. Since our establishment in 2012, our mission has been to mainstream impact into the economy and society. We have pursued this through constant, relentless collaboration with philanthropic organizations, governmental institutions, impact investors, and ventures, ensuring that impact remains at the very heart of their decision-making processes. For us, it has never been about measuring for the sake of measuring. It is about collecting relevant data that actively informs the perspectives, policies, and actions of investors and ventures—ultimately making a real difference in the well-being of people and communities.
This core belief is more critical today than ever, especially with the dramatic rise of Artificial Intelligence across almost all areas of society. While much has been written about the benefits, costs, opportunities, and threats of AI, one thing is certain: AI has emerged as a disruptive driver of development. It is already shaping the very processes through which impact is generated, measured, and managed.
However, the rapid tech rush of the last two years has created a fragmented landscape. Dozens of new platforms have emerged, offering highly vertical and only partially interoperable solutions. As a result, users are often forced to juggle different tools, conflicting methodologies, and fragmented reporting logics.
Acknowledging these rapid changes, the ADALTIM project was born. For Human Foundation, entering this project was a natural step: we found a perfect alignment with our core values and a shared vision on how technology should serve society. Through ADALTIM, our goal is to harness the power of AI to equip impact doers with the technology they need to radically improve their decision-making and impact management.
To build a tool that truly works, we engaged directly with investors and impact ventures to understand their real-world needs, expectations, and daily bottlenecks. Thanks to their feedback, we are developing a digital platform focused on two core pillars:
- Continuous Monitoring: Tracking impact performance seamlessly at the investee level.
- Impact Rating: Providing robust ratings at the investee level to help investors efficiently identify new impact investment opportunities.
Our core commitment is clear: keeping human thinking at the center of the impact management process. We are embedding fundamental values and principles directly into the platform’s methodology—specifically the materiality of changes for stakeholders and additionality.
To achieve this, the platform dedicates immense attention to data quality and verification sources. It guides users through developing clear Theories of Change, selecting adequate metrics from both standardized frameworks (like IRIS+ and the SDGs) and personalized indicator pools, aggregating results into reliable indexes, and optimizing data collection.
The greatest risk for any AI-driven technology is falling for the myth of the “silver bullet.” The ADALTIM project will succeed because our platform does not aim to replace human judgment. Instead, it is designed to empower it—eliminating the daily friction of data integration, simplifying compliance with legal requirements, taking the pain out of managing complex, large-scale datasets and above all allowing more time and focus on the active management.
The true value of the ADALTIM project goes far beyond the digital platform and its related services; it lies in the thriving ecosystem it brings to life. By guiding diverse actors toward a shared, outcome-driven language focused on stakeholders, we are ensuring that even the smallest organizations are actively included in both the development and the subsequent roll-out phases. We strongly believe that cross-sector partnerships are essential to facilitate knowledge-sharing, pool resources, and develop best practices for AI-driven impact management. Ultimately, ADALTIM is not just a technological tool—it is a collaborative space designed to help the entire impact community tackle the complexities of impact management in a gradual, strategic, and truly inclusive way.