 | |
| |
VALUE-BASED MANAGEMENT
Example: Quantifying sustainability impact
Challenge
Translation of stakeholder interests and trends into drivers of shareholder value - when possible quantified - is essential to identify actions companies can take. The most important sustainability themes and actions for a company are identified from different value creation perspectives, depending on the company’s most critical assets: financial capital and/or human capital and/or natural capital. The value levers depend on the chosen perspective (financial or human capital) and range from lowering the company’s cost of capital by attracting investors to its success in recruiting and retaining employees, as well as increasing eco-efficiency. The elegance of the shareholder value approach is that it makes the dispersed theme of sustainability transparent and actionable for people throughout the organisation, both in business units and corporate functions.
Quote client
“This was the first time that I have seen an attempt to quantify our sustainability initiatives in terms of Euros.”