Impact Through Corporations

What is the Impact-Weighted Accounts Project?

This is a combination of impact information and profit information in the same set of accounts. This was necessary because we need to be able to use the same unit of measurement for profit and environmental impact, as well as social impact.

What is the GSG?

The Global Steering Group for Impact Investment (GSG). It is an entity which is advancing impact approaches, impact investment, and the delivery of impact by businesses across more than 33 countries.

What does the data tell us about companies damage/impact?

• 450 create more damage than profit
• 1000 25%+ damage relative to profit
• 2000 25%- damage relative to profit

What can we expect from governments/companies in the future when assessing positive/negative impacts?

• Government's are focusing on this new transparency to create a fairer tax system. For example a carbon tax, which would fall on those who create the greatest pollution. We can expect to see the same thing with regard to diversity - it could well be that we will have a diversity tax.
• When it comes to employment impact, we can expect that most companies will deliver net positive employment impact
• Industry-specific product impact. For example, whether you're trying to measure the impact of a car (in terms of pollution or providing mobility to users) or trying to measure the impact of food companies products (in terms of negative health effects). 

Why is company transparency needed?

There is a prudential reason why governments should want to do this - companies are going to emerge from the COVID crisis with very heavily indebted balance sheets, reduced budgets and magnified social issues as a result of increased unemployment. Governments actually need this impact transparency in order to achieve their business and investor goals.