Impact Institute released the Framework for Impact Statements (FIS) as a response to the international trend towards measuring impact and impact reporting. The FIS draws on the experience of the Impact Institute and its partners, including ABN AMRO, AkzoNobel, Alliander and DSM.
ABN AMRO is the first bank in the world to publish its Impact Statement based on the new framework. The framework sets the scene for ABN AMRO to report on the created long-term value and positive impact for all its key stakeholders: clients, employees, investors and society at large.
Below is an excerpt from ABN AMRO’s 2018 Impact Report:
“We acknowledge that creating value involves more than financial value. We create value by paying interest and dividends to our investors. We also create value by supporting our clients with excellent service and financing their needs and dreams; and by supporting our employees in enjoying and finding purpose in their work.
We want to contribute to healthier, wealthier and happier people. For example, with our digital offering and financial coaches, we aim to improve our positive social and economic impact. We also want to contribute to a healthier planet for generations to come by financing circular businesses and projects. Finally, we are aware that issues exist in value chains where we have a shared responsibility. We are committed to minimising our negative impacts – for example, by limiting carbon emissions and aiming for zero human rights violations in our value chain.
One challenge we face is having the right information to manage our long-term value creation. This starts with data about our impacts: What is our carbon footprint? What skills and capabilities did our employees gain? In addition, we need to know the value of our impacts on stakeholders. This enables us to make trade-offs, increase our total value creation and find the right balance between the needs of our various stakeholders. It also helps us to identify issues in our own organisation and value chains, so we can work with our stakeholders to tackle these.
The Integrated Profit & Loss is a tool that helps us with this challenge by quantifying and monetising our impact. After carrying out various pilot projects, this year, we have applied it for the first time to the bank as a whole. The Integrated Profit & Loss methodology enables us to make impact statements. Just like financial statements provide the information needed to manage and communicate our financial performance, impact statements provide the information we need to manage our social, environmental and economic impact.
We recognise this is an innovative approach and that such impact statements will need to evolve. At the same time, innovation requires bold action and we are proud to be the first bank to publish Impact Statements with an Integrated Profit & Loss.”