What is impact valuation?
The value of a company has traditionally been measured by share price and profit generated for its shareholders. Today, however, stakeholders demand increasingly more insight into a business’s societal and environmental contribution. Therefore, more companies are asking themselves: How can we solve societal development challenges and reduce the risks in our value chains?
Businesses and organizations rely on many resources including raw materials, industry knowledge, employees, investors and consumers. These can be categorized into different forms of ‘Capital’. These are: Natural Capital (environmental), Economic Capital (financial), Human Capital (knowledge and skills) or Social Capital (societal).
One way to asses the contribution of a company is to measure the value of these resources by quantifying the impact into financial (monetization) or physical terms. By assigning a value to an impact, it can be more easily compared to other indicators and communicated to management.
Ecomatters has up-to-date experience in impact valuation and we can:
- Execute Natural capital accounting and other monetization studies
- We have developed three manuals explaining specific aspects of monetization.
- Get you up to speed in implementing monetization in your organization
- Support you in communicating the outcomes clearly and simply
- Help you connect with external stakeholders through monetization of environmental impact
The creation of a solid business case is vital to the success of a new product or service. A business case can be based on traditional financial models and project evaluation, but value chain related approaches or the financial aspects regarding externalities can be used as well.
In Ecomatters’ projects, the sustainability of a product or service is usually not the goal in itself. Rather, environmental aspects are integrated within the viable business model. We have a solid background in finance and economics, especially regarding project evaluation and sustainable business cases. For examples, this approach can be applied using Eco Efficiency Analysis, where financial information is combined with environmental information in order to optimize reduced environmental impact in proportion to a product’s cost-effectiveness.
Ecomatters has a strong background in economic assessment and we can:
- Perform Eco Efficiency and lifecycle costing studies
- Perform the financial assessment to existing Environmental studies
- Highlight the value of your sustainable products and value chains