The EU is providing the Value Balancing Alliance with financial support to develop a first set of generally accepted accounting principles and guidelines regarding environmental impacts for business
Over the next three years, the Value Balancing Alliance in partnership with Capitals Coalition (https://capitalscoalition.org), will develop a standard for measuring and valuing environmental impacts of companies in monetary terms.
The EU Commission is keen to support the development of such harmonized methods, in order to reduce costs, broaden the practice across the economy and ultimately enable significantly more sustainable decisions. This project contributes to the objectives of the action plan to finance sustainable growth within the EU and various follow-up actions set out in the Green Deal such as standardizing natural capital accounting practices, reviewing the non-financial reporting directive or implementing the taxonomy for sustainable activities.
Essentially, the project partners are developing a standardized method for companies, that helps decision makers create long-term value for their companies, while simultaneously taking into account the total impact of their business operations on the environment and society as a whole.
By uniting financial and ecological perspectives, this accounting standard will enable the consistent measurement of sustainable value creation in companies, and thus allow for comparability.
The method is intended to become a global industry standard in the medium-term, also aiming to increase transparency regarding the value creation of companies, based on consistent definitions.
The project partners will cooperate with relevant stakeholders from research, politics, civil society and business. Their results will be made accessible to the public.
For further information, please contact:
Sarah Mirjam Fischer
Phone: +49 69 153 2936-21
Mobile: +49 151 46690223
Value Balancing Alliance (registered association): Founded 2019, with the vision of developing a new and global accounting standard which can integrate positive and negative impacts of business operations into corporate reporting.
The alliance is a business-led initiative, currently run by BASF SE, Deutsche Bank AG, LafargeHolcim Ltd, Novartis International AG, Robert Bosch GmbH, SAP SE and SK Holdings, Mitsubishi Chemical Holdings and Porsche AG. Furthermore, the alliance is supported by the four largest professional services networks: Deloitte, EY, KPMG, PwC, as well as the OECD.