Enabling clients to devise improved methods, tools and frameworks to better track and measure performance.
In business, it is often said that you can't manage what you don't measure. This is just as true when it comes to how your business affects society. Companies are under increasing pressure to show they make a positive contribution to society as well as generating profits for shareholders. Focusing on the financials alone is no longer enough.
In many sectors and markets today, an organization's positive impact on society can make the difference between winning and losing. Therefore, measuring and managing those impacts is simply good business. In recent years, methodologies to measure an organization's impacts – both positive and negative – have become much more sophisticated.
A growing trend is to express all economic, social and environmental impacts in a common financial metric; doing this can inspire productive conversations in the boardroom and management meetings. It can also help change thinking and stimulate action within organizations. A common metric allows you to compare the impact of your organization across topics (social, environmental, governance) and identify what’s most important. Furthermore, it allows you to take societal impact into account when evaluating investment decisions: not only looking at financial return, but simultaneously considering how the investment affects our communities and ecosystems.
The KPMG True Value methodology has been at the forefront of this movement since its launch in 2014. Since then, dozens of organizations around the world have used KPMG True Value to measure their impacts on society and apply that learning to their business. The methodology improves the decision-making process, looking further than merely the financial return-on-investment. It enhances reporting of the company’s contribution to society including the strengthening of relationships with stakeholders, and it helps measure the impact of the company’s products, services and projects on people and the environment.
How we can help
Our analysts carry out a detailed assessment of your organization's most significant economic, social and environmental impacts, both positive and negative.
The assessment is totally scalable: it can be applied to a single product or service, to a company's global operations or to the entire value chain including suppliers and the downstream use of the company's products.
Once your company's material impacts are identified, we calculate the financial value for each materiality. We select the most appropriate valuation factors from a comprehensive KPMG database, which is sourced from academic research around the world and continuously expanded and updated.
Generic KPMG True Value Bridge