ESG Impact

Your stakeholders are increasingly taking into consideration in their decisions your environmental, social and governance (ESG) performance. Consumers are choosing brands for their ethical behaviour and their record on climate change. Investors are favoring businesses with robust ESG frameworks. In addition, governments are implementing regulations requiring organisations to increase transparency in areas such as diversity, equal pay, carbon emissions and modern slavery. 

That makes your ESG efforts crucial to long-term value creation and growth.

The True Value methodology developed by KPMG provides a stable framework for understanding the impact a company has on society and the economy, and how it can create greater economic and social value.

Our expert team supports clients in the following areas to understand their ESG impact:

Through impact reports, an organisation communicates its measured and estimated social and environmental impacts in a transparent way. When using green financial instruments, it is typical to develop this type of impact report, for example when issuing green bonds or granting green loans, to demonstrate the impact of the financial institution's use of green instruments.

An environmental impact assessment (EIA) is a preliminary or retrospective complex analysis of the environmental impact of a company or project, including exposure to unexpected events (such as accidents or disasters). The impact assessment aims to avoid and manage negative environmental impacts and to integrate environmental considerations into decision-making in an objective way, based on comprehensive analysis.

In accordance with the objectives of the engagement and the nature of the client’s activities, the analysis may cover the following areas among others:

• Impact on the local environment focusing on the areas of water consumption, pollution and biodiversity 
• Circular economy approach analyzing the input and output resources, products and services

A social impact assessment is a preliminary or retrospective complex analysis of the impact of a company, programme, project, or sector on society, based on quantitative and qualitative (e.g., survey interviews, focus groups) research and analysis methods.

In accordance with the objectives of the engagement and the nature of the client’s activities, the analysis may cover the following areas among others:

Some key indicators of quality of life (e.g., employment status and intensity, income status, health);

• Evolution of access to social goods and public services (e.g., road infrastructure, education);
• The situation of disadvantaged social groups, equal opportunities.

An economic impact assessment is a preliminary or retrospective analysis of the economic impacts of a company, programme, project or sector on the national and/or regional/local economy, based on complex, primarily quantitative research and analysis methods. The results of the analysis can be used for stakeholder communication, demonstration of the (indirect) economic weight of the company to corporate decision-makers or legislators and regulators and supplementation for the sustainability reports providing stakeholders with additional insight into the value created by the client:

In accordance with the objectives of the engagement and the nature of the client’s activities, the analysis may cover the following areas among others:

• Key economic performance indicators (e.g. gross value added, number of jobs, tax payments, exports);
• Indirect economic impacts (supplier value chain, local companies, economic multipliers at regional and/or national level);
• Direct and indirect employment effects;