• Frankfurt, 15 July 2021

Joint Statement on Advancements in Value Accounting Network

The purpose of the Value Accounting Network is to advance the role of value accounting in decision-making, governance, and disclosure. To achieve this the members of the Value Accounting Network, collaborate and build consistency in what value accounting is, and how it is applied.

A shared ambition for value accounting 

We are united in our shared ambition that the value provided by and experienced by people and nature must be included in all decision-making.
We recognize that one reason the global community is failing to address the collective
challenges of climate change, inequity, and the loss of nature is that decisions are based
on incomplete information that is not sufficiently accounting for the value provided by
nature, people, society, and the economy.
We are working together through the Value Accounting Network to advance the use of
value accounting in decision-making.

Value accounting is defined by the Network as:

The collection, calibration, and use of information about the relative value that an
organization creates, preserves, or erodes for its stakeholders, using common units.
This information is used when making decisions for a variety of purposes.

The term value accounting encompasses impact measurement and valuation, capitals
assessments and accounting, valuation, context driven information and other approaches
that you may have heard of such as true price or true cost accounting.

The system of value accounting initiatives

Internationally accepted frameworks such as the Natural, and Social and Human Capital
Protocols, Social Value International’s framework, and the System of Economic
Environmental Accounting (SEEA) represent the synthesis of previous efforts to
standardize approaches.

As momentum grows towards greater use of value accounting in decision-making, there
are several new and evolving initiatives which are developing necessary methodologies
and guidance to fulfil different needs and objectives.

The leaders of these initiatives regularly engage with one another through various
networks and through bi-lateral agreements. They also collaborate through the Capitals
Coalition which was established by the community as a forum to challenge assumptions,
share learnings and best practice, and travel towards greater understanding and

It can though be overwhelming to be confronted with so many different approaches. It is
not always easy to understand how they relate to each other, and which route is best
suited for your needs.

The Value Accounting Network aims to help to address this challenge and will meet at
regular intervals to develop a program of work that will:

  • Clearly display how the various initiatives relate to and complement one another.
  • Progressively build consistency in how value is reflected and support the role of
    audit and assurance, in holding decision makers to account.
  • Support and communicate individual advances made by parts of this community
    towards greater application.
  • Continue to explore developments in value-based initiatives, build on each other’s
    work and harmonize terminology, measurements and boundaries, classifications,
    parameters, techniques, and value coefficients.


As a starting point we commissioned independent research from Sustain Value on the
points of commonality between the initiatives. These show that all members of the
network are similarly motivated and share a common understanding of the imperative to
integrate information across economic, environmental and social dimensions. This
commonality will also form the basis for future work together.

  1. We firmly believe it is vital for businesses, finance, and governments to base
    decisions on value accounting.
  2. We aim to modernize accounting to transform governance practices, decision
    making, and reporting.
  3. We believe that we need generally accepted principles to account for value.
  4. We believe that integrated thinking, and a holistic systems-based approach is
  5. We embrace and support the concept of ‘capital’ reflecting stocks that can change
    over time and that underpin increasing or decreasing flows of benefits to people,
    communities, the environment, and the economy.
  6. We recognize the importance of accounting for holistic value creation, the value of
    impacts and dependencies on different capitals.
  7. We recognize that the value to society (inside-out) and value to the entity
    (outside-in) are both essential to assess and report value.
  8. We believe that the trade-offs between capitals and between stakeholders must
    be specified and addressed in decision making.
  9. We recognize the importance of existing efforts, and we are building on the
    standards, frameworks and definitions that have already been agreed.

Help create a new normal

If you are reading this, then it is likely that you are already thinking about how value
accounting may be able to help you achieve your aims. Whether you work in business,
finance, or government you will already be making decisions that could be improved with
the contextual information and data that value accounting can provide. The role of
standard setting, accountancy, academia, science, and civil society to inform and
influence the use of value accounting is also essential.

If you would like to find out how the initiatives referenced here may be able to help you
or would like to know more about the Value Accounting Network, then please contact

A short introduction to each of the initiatives involved in the network and their guidance and methodologies (alphabetical order)

InitiativeShort introductionGuidance and
Economics of Mutuality FoundationThe Economics of Mutuality (EoM) is a management innovation based on 15 years of in-depth academic research and business practice.
Developed within Mars Inc since 2007 and Oxford Said Business School (which has been a core partner since 2014) EoM is a step-by-step methodology that helps companies to put their purpose into practice — and to thrive by meeting the social & environmental needs in their ecosystems. EoM promotes Mutuality as a powerful principle for organising business among stakeholders within an ecosystem through non-financial capital metrics and new modes of profit construction. Since 2020, EoM operates as an independent public interest foundation in Geneva.
Measuring Purpose an
Integrated Framework
GISTGIST is a leading impact valuation company that brings together sustainability expertise with technology and big data to help investors and companies measure, value, and benchmark business impacts across all four capitals: Natural, Human, Social and Financial. GIST’s data and software solutions provide analytics and insights that make it easy for investors and companies to measure performance across all value dimensions, manage material risks, and make informed decisions.I360xl;  SME360x
IDEEA GroupThe Institute for Development of Environmental-Economic Accounting – IDEEA Group – is a global consultancy specializing in natural capital
accounting across the public and private sectors. Led by principals that pioneered the United Nations’ System of Environmental Economic Accounting IDEEA Group are now recognised as leading authorities on the development and practical application of natural capital accounting
principles to decision making. IDEEA Group support their clients with concepts, systems and practices for including natural capital in decision making.
Impact InstituteThe Impact Institute empowers organizations and individuals to realise the Impact Economy and as such has launched the Impact Economy Foundation
which aims to create a global community of impact professionals in order to accelerate the transition to the impact economy: an economy in which work,
entrepreneurship, innovation, and technology engender a better world.
Reconstructing the economy for the 21st centur. Also from the Impact Institute:
Framework for Impact
Integrated Profit and Loss
Assessment Methodology (IAM)
Impact Institutes Global
Impact Database
Banking for impact
Impact Weighted Accounts at Harvard Business SchoolThe mission of the Impact-Weighted Accounts Project is to drive the creation of financial accounts that reflect a company’s financial, social, and environmental performance. Their ambition is to create accounting statements that transparently capture external impacts in a way that drives investor and managerial decision making.A framework for Product Impact Weighted Accounts
Rethinking CapitalCreating a just and equitable society through a new economic theory and capitalising and accounting for intangible assets. Research and test
the robustness of a new set of Normative Accounting principles and associated methodology in dialogue with practitioners and technical experts. These builds on existing accounting and reporting standards. Methodology available through
Methodology Impact Statement General Paper v 0.1
Social Value InternationalA global membership body with a mission to
change the way the world accounts for value.
Developing national networks of practitioners from
public, private & civil society to share best practice
and collaborate on setting standards and assurance
for social value accounting
S&P Global Sustainable 1Our comprehensive coverage across global markets
combined with in-depth ESG intelligence provides
financial institutions, corporations, and
governments an unmatched level of clarity and
Scores ; Assessments ; Evaluations ; Performance ; Insights
Value Balancing AllianceThe Value Balancing Alliance e.V. is a non-profit
organization with the ambition to change the way
how company performance is measured and
valued. The alliance’s objective is to create a global
standard for disclosing positive and negative
impacts of corporate activity and to provide
guidance on how these impacts can be integrated
into accounting system for business steering.
The Value Balancing Alliance is part of a
consortium with the Capitals Coalition and WBCSD,
leading the EU LIFE project Transparent, which
aims to develop standardized natural capital
accounting and valuation methodologies for
business, in line with the ambition of the European
Green Deal. A sister project, Align, will bring
together existing work on corporate biodiversity
measurement to develop a standardized approach
to biodiversity measurement and valuation. Both
Transparent and Align will be integrated to provide
a holistic framework for businesses globally
Methodology Impact Statement General Paper v 0.1

The network is curated by the Capitals Coalition in partnership with the Impact Management Project, with additional independent technical support provided by Sustain Value.

Curated by:

Capitals Coalition The Capitals Coalition is a global collaboration of the leading c.400 organizations who are redefining value to transform decision-making. Working through collaboration, Coalition organizations have been responsible for developing generally accepted frameworks (Natural Capital Protocol, Social & Human Capital Protocol) and supporting guidance and tools and for leading projects towards greater use of valuation in decision-making.

In partnership with: 

Impact Management Project A forum for building global consensus on measuring, managing and reporting impacts on sustainability. It is relevant for enterprises and investors who want to manage environmental, social and governance (ESG) risks, as well as those who also want to contribute positively to global goals.

Technical support fromL

Sustain Value Sustain Value is a consultancy that helps businesses and financial institutions value natural, social and human capital impacts and dependencies for decision-making, reporting and informing investments.
Recognized as technical leaders in impact valuation, we have been leading authors on many guides including the Natural Capital Protocol and Principles for Integrated Capitals Assessments. Amongst other things, we provide clients with cost-effective bespoke impact valuation tool.