The Positive Impact measurement trend in the private sector - and the SDGs

Transcription

1 The Positive Impact measurement trend in the private sector - and the SDGs April 15 th 2015 Samuel Vionnet Sustainability Expert sv@valuingnature.ch +41 (0)

2 Despite these development, sustainability is not yet mainstream in the private sector listed companies* companies worldwide UNGC GRI CDP How bad? Uptake of reporbng and other sustainability related inibabves worldwide DJSI B Corp Positive impact trend + Net Positive * Source: World Bank, 2014 (excluding purely financial companies) 5 2

3 Who? Companies having net positive commitments (a selection) 3

4 Redefining value Value + I + Net (positive) IMPACT I Full value chain I + + Social Environment Economic 4

5 How do we measure impact? - The protocol momentum Release date: mid July Social Capital Protocol (WBCSD and other partners) 5

6 How do we measure impact? We must define impact pathways or a theory of change. The value we create is measured at the outcome level only. Input Activity Output Outcome Impact Forests ecosystems Investments Water filters Clean and safe water access Other water sources Storage conditions Decreased children deaths Health benefit 6

7 How do we measure impact? We must define impact pathways or a theory of change. The value we create is measured at the outcome level only. Input Activity Output Outcome Impact Forests ecosystems Investments Water filters Clean and safe water access Other water sources Storage conditions Issue 2: Measuring something else than an outcome Decreased children deaths Health benefit Issue 1: Double counting 7

8 How do we measure impact? About the SDGs See article for full results: 8

9 How do we measure impact? About the SDGs Natural Capital targets contribute to >50% of all SDGs targets (= co-co-benefits") See article for full results: 9

10 How do we measure impact? About the SDGs There are 152 direct negative feedback loops See article for full results: 10

11 Water Filters Societal Impact (Tanzania) Project level Costs Benefits All values in USD PPP (2014), for one carbon credit. 11

12 Nestle Corporate Natural Capital Accounting Company wide level Total societal cost of the loss of natural capital along the value chain of Nestlé Supply chain Direct operations Use of products In billions CHF Dominated by water, land use and climate change Dominated by climate change, non-renewable resources use and water Source: Nestlé - Measuring Value: Towards new metrics and methods (public report, 2015) 12

13 Nestle Corporate Natural Capital Accounting Company wide level Social/Human Capital Accounting Trends Energy efficiency (direct) Water efficiency (direct) Eco-design (packaging) Health & Safety + nutrition, rural development, etc. In CHF Societal Profits Losses Natural Capital Accounting Societal value created by Nestlé s sustainability initiatives worldwide Source: Nestlé - Measuring Value: Towards new metrics and methods (public report, 2015) 13

14 Triple bottom line accounting Company wide level Source: public report available 14

15 Thank you! Questions? Samuel Vionnet Sustainability expert and founder +41 (0)

16 Societal Return on investment Supply chain level If one USD was invested in a specific rural community (developing country in South America), providing a specific good to a company, what would be the societal return on investment? School infrastructure Estimated societal benefit / USD invested Electrification project = Farmer s premium Environmental externalities Supply chain efficiency project WASH project Malnutrition project Occupational safety Source: confidential study 16

17 Where are we now? Trends - Sustainability and the private sector Sustainability is still not mainstream in the private sector despite the usual suspects listed companies* companies worldwide CDP DJSI GRI B Corp Uptake of reporting and other sustainability related initiatives worldwide * source: World Bank, 2014 (excluding purely financial companies) 17

18 Where are we now? Trends - Sustainability and the private sector The increasing uptake of those initiatives over a short period of time is significant! Note the new trends around positive impact. GRI Positive impact trend CDP DJSI B Corp Net Positive 10% 4% 19% <4% <2% How much positive? 1990 How bad? How much less bad? 18