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Total Impact Valuation: Overview of Current Practices (Expanded Report)
June 2018 | Publication
Total impact valuation—the practice of quantifying and monetizing a company’s economic, social, and environmental impacts—has almost as many methodologies as it has companies engaging in the practice. BASF, Samsung, AkzoNobel, and the 11 other companies in our sample thathave published the methodologies and results of their quantitative environmental and social impact analyses are trailblazers in a complex, emerging field that could play an important role in the future of company reporting. But in the absence of a standard methodology, the differences in valuation approaches make it unfeasible to compare company practices oreven to draw useful conclusions about an individual company’s results. Without a common language, total impact valuation risks remaining at best an immensely challenging, scattered practice, and at worst a self-serving, misleading instrument.
This report includes:
- Appendix A: Companies in our sample;
- Appendix B: Economic, social, and environmental indicators used in total impact valuation methodologies;
- Appendix C: Examples of valuation approaches by indicator.