Press Release – NEW YORK, July 12, 2018 – Today, The Conference Board released a study with examples of how businesses put a monetary value on their environmental, economic, and social impacts. This emerging practice, total impact valuation, reveals to what extent their actions have a positive or negative influence beyond traditional financial accounting – a useful metric for any business looking to provide more societal value.
The study, Total Impact Valuation: Overview of Current Practices, looks at the approaches companies use to evaluate their total impact; the primary characteristics of these approaches, such as the types of indicators measured; and, the key similarities and differences between these approaches.
“Companies now face unprecedented pressure to disclose data about their environmental and social impacts, making total impact valuation a valuable tool in today’s sustainability landscape,” said Thomas Singer, author of the report and Principal Researcher in the Sustainability Center at The Conference Board. “But for the practice to gain more appeal across the globe, the business community must help to improve its key drawbacks – namely, the limited comparability of results given the absence of a standard methodology.”
Insights from the analysis include but are not limited to the following:
Water use and greenhouse gas emissions are the two most commonly monetized indicators.
Total impact valuation is still in its embryonic stage.
Extending total impact valuation to the value chain can yield insights, but only a handful of companies do this.
Total impact valuation lacks a standard methodology, limiting the ability to draw useful conclusions.
About The Conference Board
The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: To provide the world’s leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States.
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