An M&E framework should outline the scope and objectives of social investments and investment strategies, while defining the data and information needs matched to the methods and sources of information. It should outline the roles and responsibilities of stakeholders in contributing to building the impact evaluation findings, while putting in place a strategy for using the results. Finally, it should enable a good understanding of the capacities and conditions needed to ensure socially responsible investing.
A good M&E framework depends on rigour of all components with regards to sample selection, research tools, reliability of indicators, quality of data collection, depth of analysis, as well as reporting and utilisation. It ensures enhanced social performance, reducing social and environmental risks and conflicts and builds trust through better communication.