IMPACT MEASUREMENT AND REPORTING
Measuring impact helps Financial Institutions better understand the actual and potential financial, social, and environmental impact they have on their stakeholders and the drivers of such impact. For example, climate or biodiversity footprints, portfolio impact assessments, Human Rights violations in the value chain, financial inclusion, as well as the value created with financial products such as mortgages and sustainability-linked bonds. It allows them to credibly report on the value they create and satisfy sustainability reporting requirements (ESRS, CSRD, SFDR, TNFD, TCFD, etc.).
IMPACT MANAGEMENT AND STRATEGY
The financial sector is crucial to help accelerate societal transitions such as the energy, food, or materials transition. Understanding the impact and the underlying drivers helps to broaden the interpretation of ‘value’ beyond simple financial value. It enriches investment and lending decisions and enables institutions to anticipate emerging risks, thereby helping them thrive – and even survive – in a world tested by environmental and social shifts. Impact valuation allows for the creation and execution of a comprehensive strategy where trade-offs can be compared and managed in terms of risk, return, and impact. For example, using impact information to develop product portfolios that stimulate business with lower external costs and incorporating True Value in investment policies and processes.