the “positive impact” measurement trend in the private
TRANSCRIPT
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The“PositiveImpact”measurementtrend
intheprivatesector
- andtheSDGs
April15th 2015
SamuelVionnet
[email protected]+41(0)763729027
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* Source: World Bank, 2014 (excluding purely financial companies)
44’000listedcompanies*
120’000’000companiesworldwide
CDP
DJSI
GRI
BCorp
UptakeofreporBngandothersustainabilityrelatediniBaBvesworldwide
Despite these development, sustainability is not yet mainstream in the private sector
UNGC
NetPositive
Positiveimpacttrend
+
Howbad?
3
Who?
Companieshavingnetpositivecommitments(aselection)
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Redefiningvalue
Value
Fullvaluechain
I
I
I
+ +
+ +
Net(positive)IMPACT
Social Environment Economic
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Howdowemeasure“impact”?
- Theprotocolmomentum
http://www.naturalcapitalcoalition.org/
+SocialCapitalProtocol(WBCSDandotherpartners)
Release date:midJuly2016
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Howdowemeasure“impact”?
• Wemustdefine impactpathwaysoratheoryofchange.• Thevaluewecreate ismeasured attheoutcomelevelonly.
Forestsecosystems Water filters Cleanandsafe
wateraccess
Decreasedchildrendeaths
Otherwatersources
Storageconditions
Activity Output OutcomeInput
Investments
Impact
Healthbenefit
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Howdowemeasure“impact”?
• Wemustdefine impactpathwaysoratheoryofchange.• Thevaluewecreate ismeasured attheoutcomelevelonly.
Forestsecosystems Water filters Cleanandsafe
wateraccess
Decreasedchildrendeaths
Otherwatersources
Storageconditions
Activity Output OutcomeInput
Investments
Impact
Healthbenefit
Issue1:Doublecounting
Issue2:Measuringsomething
elsethananoutcome
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Howdowemeasure“impact”?
AbouttheSDGs
Seearticle forfullresults:http://www.goldstandard.org/blog-item/achieving-net-positive-impact-using-sdgs
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Howdowemeasure“impact”?
AbouttheSDGs
Seearticle forfullresults:http://www.goldstandard.org/blog-item/achieving-net-positive-impact-using-sdgs
NaturalCapital
targetscontributeto
>50%
ofallSDGstargets
(=“co-co-benefits")
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Howdowemeasure“impact”?
AbouttheSDGs
Seearticle forfullresults:http://www.goldstandard.org/blog-item/achieving-net-positive-impact-using-sdgs
Thereare
152directnegative
feedbackloops
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WaterFiltersSocietalImpact(Tanzania)
Projectlevel
AllvaluesinUSDPPP(2014),foronecarboncredit.
Costs Benefits
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Nestle CorporateNaturalCapitalAccounting
Company wide level
Source:Nestlé- Measuring Value:Towards newmetrics andmethods (publicreport,2015)
Supplychain Directoperations Useofproducts
Totalsocietal costofthelossofnaturalcapitalalongthevaluechainofNestlé
InbillionsCHF
Dominatedbywater, landuse andclimatechange
Dominatedbyclimatechange,non-renewableresourcesuse
andwater
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Nestle CorporateNaturalCapitalAccounting
Company wide level
SocietalProfitsLosses
Energyefficiency
(direct)Trends
2012 - 2013
Health&
Safety
Waterefficiency(d
irect)
Natural Capital Accounting
Social/Human Capital Accounting
Eco-desig
n(packaging)
+nutrition,ruraldevelopment,etc.
In CHF
Source:Nestlé- Measuring Value:Towards newmetrics andmethods (publicreport,2015)
Societal valuecreated byNestlé’s sustainability initiatives worldwide
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Triplebottomlineaccounting
Companywidelevel
Source:publicreportavailable
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SocietalReturnoninvestment
Supplychainlevel
Source:confidential study
IfoneUSDwasinvestedinaspecificruralcommunity(developingcountryinSouthAmerica),providingaspecificgoodtoacompany,whatwouldbethesocietalreturnoninvestment?
Schoolinfrastructure
Farmer’spremium
Electrification project
Supplychainefficiencyproject
Malnutritionproject
WASHproject
Environmentalexternalities
Occupational safety
=
Estimatedsocietalbenefit/USDinvested
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Where arewe now?
Trends- Sustainability andtheprivate sector
*source:WorldBank,2014(excluding purely financial companies)
Sustainability isstillnotmainstream intheprivatesectordespite theusualsuspects.
44’000listed
companies*
120’000’000
companies
worldwide
CDP
DJSI
GRI
BCorp
Uptake ofreporting andother sustainability
related initiativesworldwide
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Where arewe now?
Trends- Sustainability andtheprivate sector
1990
2000
2010
2003
1999
1997
2006
CDP
DJSI
GRI
BCorp
10% 4% 19% <4%
NetPositive
<2%
Howmuchpositive?
Positiveimpacttrend
Howbad?Howmuch“lessbad”?
The increasinguptakeofthose initiatives overashortperiodoftimeissignificant!Notethenewtrendsaroundpositive impact.