The need for sustainability to be rewarded financially has never been clearer. Companies excelling in sustainability should be recognized with tangible rewards that reflect their performance. However, this requires a stable regulatory environment that encourages corporate sustainability investments, supports products by financial services, and fosters customer behavior that aligns with sustainability goals.
Our world is at a critical juncture, facing climate change, biodiversity loss, economic inequality, and geopolitical conflicts, all of which influence the economy and business resilience. The need for a just transition to a new economic system — the impact economy — is urgent. Businesses must integrate financial, social, human, and natural capital into one comprehensive system, where corporate outperformance in sustainability will be financially rewarded.
Impact accounting is a proven solution that allows businesses to report their positive and negative impacts in monetary terms. It's a method tested by companies like Kering and Holcim, now further developed by the Value Balancing Alliance (VBA) in collaboration with partners like the International Foundation for Valuing Impacts (IFVI). This approach offers companies a clear path to simplifying reporting requirements while meeting regulatory standards, reducing data preparation efforts, and providing actionable insights for decision-making.
The VBA, through its extensive testing and collaboration with industry leaders, is committed to advancing impact accounting as the leading methodology for corporate reporting.
We invite you to explore this comprehensive perspective on how improving corporate reporting can drive sustainability and business performance, with the full paper available for download below.