International Foundation For Valuing Impacts (IFVI)

Share your feedback on the newest #impactaccounting methodology exposure draft 👇 Today, IFVI and the Value Balancing Alliance release the exposure draft for the 🛒 Framework for Industry-Specific Product Impacts (Product Framework) for public comment. The impact of products on consumers has historically been a less developed area of sustainability reporting standards. Product impacts can range from the potential negative impacts of products like tobacco to positive impacts of life-saving drugs. Understanding product impacts is essential to a complete understanding of a company’s overall impact. The Product Framework Exposure Draft provides the building blocks for accounting for product impacts that primarily affect consumers, laying out concepts, definitions, and methodological considerations specific to product-related impacts and applicable across ALL industries. The impact accounting methodology, produced by IFVI and the VBA, is a globally applicable and comprehensive public good methodology that allows companies and investors to translate social and environmental impacts into the language of currency - making them comparable to financial performance. We invite YOU to join the conversation! We are seeking feedback from the public and welcome anyone interested in impact accounting to comment. Learn how to submit feedback here: https://lnkd.in/ecZUz6Rp 🚩 Deadline to submit comments: April 30 #impactvaluation #sustainability #sustainabilityreporting

🌍 Introducing the Industry-Specific Product Impact Framework! We’re excited to share our new Product Framework — a crucial step toward a standardized system for measuring in currency the unique positive and negative impacts goods and services have on society, filling gaps not yet fully covered by traditional sustainability reporting standards. 🎯 Why does this matter? Product impacts vary by industry and the nature of the product. For example, the potential negative impacts of products like tobacco to positive impacts of life-saving drugs. 🔑 Key Highlights: 📌 Scope of Product Impacts: The impacts of end-users using a good or service (e.g. the impact of driving a car, eating an apple, using a smartphone). 📌 The Value Chain Creates Impacts Too: While companies in the value chain (e.g. suppliers of raw materials) are not selling to end users, their impacts can be measured based on the proportion they contribute to the final product. 📌 Standardized, Evidence-Based Process: A three-step method that encourages thorough research and credible independent sources to reduce the risk of misrepresenting product impacts. In the framework, we also discuss the importance of establishing a default reference scenario to ensure comparability of impact information and understanding the distinction of product impacts from market prices to provide a complete picture. This exposure draft is open for public comment! Help shape this important tool for businesses worldwide. 📢 Join the Virtual Feedback Session 🗓 Date: April 8 ⏰ Time: 3 p.m. CET | 9 a.m. ET 💬 Share your input directly with the teams at IFVI and VBA: https://lnkd.in/e_s7GGUd 📩 Submit Your Feedback by April 30, 2025 ✔ Fill out the survey via https://lnkd.in/eihqc5aD or email research@ifvi.org with the methodology title in the subject line. Your input matters—thank you for sharing your thoughts! 💡 Value Balancing Alliance

We are all growing weary - but it is more important than ever to better understand the impact of corporate decisions on people + planet and to have that information be available in a consistent, accurate and comparable format. A thoughtful rollup on where Sustainability will be headed after pausing from Marc Siegel I am glad to see that adding #impactaccounting alongside financial accounting is gaining momentum. One piece of advice he offers - get ahead of regulations and “Ask what drives your valuation—and how well your reporting reflects that.” At Lunum we’ve been working building and expanding our impact accounting data platform for workforce investments and impacts since 2022. The data is guiding decision making by corporations and their value chains to identify and improve the ROI on workforce investments and impacts. Leaders in the ecosystem like International Foundation For Valuing Impacts (IFVI) have been integral to making this possible and continue to expand on the methodology and value factors.

At IFVI, we're proud to be partnering with #EcoMap, an innovative data platform developed in collaboration with Norwegian School of Economics (NHH) and MSCI Sustainability Institute that's transforming how we understand corporate environmental performance.  Let's explore the power behind EcoMap – its robust methodology and dashboard. EcoMap is the first comprehensive search engine of 20,000 companies, which allows anyone to understand the social costs of corporate greenhouse gas (GHG) emissions.  We're showing you the dashboard using Equinor as an example, with the following key metrics: 🪴Operational Environmental Cost: The financial impact of a company's day-to-day operations on the environment. 🪴 Total Environmental Cost: The overall cost to society from the company's environmental impact. 🪴 Adjusted EBITDA & EBIT: Financial performance with environmental costs taken into account. The "Environmental Cost Statement" breaks down where a company's emissions come from, considering impact from different parts of its business. The "Environmental Cost Bridge" visually shows how these different impacts add up to the total environmental cost. EcoMap also provides industry benchmarking, allowing you to compare a company’s environmental performance against its peers and the wider industry. Explore EcoMap and see how it can enhance your decision-making: www.ecomap.org To learn more about our methodologies to value impact, visit our website: www.ifvi.org  #EcoMap #Sustainability #EnvironmentalImpact #ESG #CorporateResponsibility #IFVI #ClimateData 

WISIT, the WifOR Institute Sustainability Impact Tool, has been extended to include International Foundation For Valuing Impacts (IFVI)’s value factors. This further enhances transparency in impact accounting for companies, investors, and decision-makers. IFVI's more than 100,000 value factors cover over 430 different types of environmental and social impacts, tailored for the unique contexts of over 268 countries and regions.  In WISIT, we provide access to multiple sets of monetization coefficients – including our own Value Factors 2.0. Although these coefficients currently follow different methodological approaches and are not yet fully harmonized, transparency represents an essential first step toward establishing a common standard in impact accounting. 🚀 Learn more about WISIT here: https://lnkd.in/eqXjqYyk This extension builds upon the ongoing collaboration between WifOR Institute and IFVI. Last year, Dr. Richard Scholz, Head of Impact Analysis at WifOR Institute, joined IFVI’s Valuation Technical & Practitioner Committee (VTPC). This committee steers, validates, and approves methodologies developed through the partnership between IFVI and the Value Balancing Alliance (VBA).     WifOR also contributed to IFVI and VBA’s "Vision for the Impact Accounting Methodology," which defines key areas for future methodology development in impact accounting and aligns with leading sustainability reporting frameworks. Access the report here:  https://lnkd.in/eTGpAtPu     How could value factors influence sustainability reporting in your organization? Share your thoughts below👇   #Impact   #ImpactAccounting #ImpactMeasurement  

The journey to impact accounting started with a bold question: What if financial reports reflected not just profits, but also a company’s social and environmental impact? 🌿 At IFVI's predecessor Harvard Business School's Impact-Weighted Accounts Project (IWA), researchers analyzed over 6,000 companies, translating their environmental and employment impacts into monetary terms. By 2021, it had achieved proof of concept, demonstrating both feasibility and value through: 🌿 20+ research papers  🌿 Two dozen pilot studies  🌿 Four datasets showcasing monetized impact figures across industries One powerful example is NG Nordic, a portfolio company of our partner Summa Equity. In 2023, NG Group demonstrated a net positive climate impact valued at €141 million by avoiding 1.5 million tons of CO2 emissions. Additionally, their employment impact, measured by the number of people employed (2,277), contributed to a social impact value of €71.7 million! 📖 Read more about how this research is shaping the future of impact measurement: https://lnkd.in/dur9gjVG #ImpactAccounting #SustainableFinance #ESG #InvestingForImpact #IFVI

Big announcement during the week of World Water Day! We’re excited to share that RG Sciences (RGS) and IFVI have deepened our partnership to make high-quality Water Impact data more accessible than ever! Starting today, you can access Water Impact data for 10,000+ publicly listed companies on RGS' RIFT platform - completely FREE. This data, calculated using IFVI’s value factors and impact accounting methodology, helps investors, researchers, and corporate leaders better understand water-related risks and sustainability performance at scale. Water is a critical but often overlooked impact pillar. Operational water consumption plays a key role in shaping corporate sustainability strategies, risk exposure, and long-term resilience. By integrating IFVI’s methodology, RGS is making it easier than ever for stakeholders to quantify and compare water impacts across industries and geographies. And that’s not all! In addition to water impact, RGS is also providing GHG emissions data calculated using IFVI’s methodology and value factor for the same set of companies, again, for free!   🔗 Explore the FREE datasets for 10,000+ companies on RGS' RIFT platform:  https://lnkd.in/edHiMe76 📖 Learn more about IFVI’s value factors and methodology: https://lnkd.in/etJQQNjz This partnership represents a major step toward democratizing impact data and empowering decision-makers with transparent, standardized, and actionable insights. Are you conducting research? Evaluating portfolio risk exposure? Benchmarking your company? Now, you can access impact data at scale - without barriers! And this is just the beginning! Let’s connect and explore how impact data can support your work. 🚀 #WorldWaterDay #ImpactAccounting #Partnership #DataForGood

✒️Check out the meeting minutes from the February 2025 meeting of IFVI’s Valuation Technical & Practitioner Committee (VTPC): https://lnkd.in/eqP9ZADk The VTPC was established to direct, validate, and approve the #impactaccounting research and methodology produced by IFVI in partnership with the Value Balancing Alliance. #impactaccounting #sustainability #impactvaluation

KDDI Corporation, a leader in 5G, AI, and data-driven services, knew its IoT technology was shaping industries but how could they prove its real-world impact? With 41.97 million IoT connections spanning automotive, security, and energy, they turned to impact accounting to quantify their contribution to society. The company saw a 502.3 billion yen impact, equivalent to 1.6x their EBITDA - making the invisible, visible. 💬 "Non-financial value is indispensable in representing a company’s true worth." – Nanae Saishoji, CFO, KDDI At IFVI, we’re proud to support leaders like KDDI in redefining how we measure business success. ➡️ Swipe to see how they did it. #ValuingImpact #ImpactAccounting #ESG #Sustainability #IFVI #IoT #CorporateValue #FinanceForGood #KDDI

Don't miss the upcoming IFVI-Value Balancing Alliance webinar on the exposure draft for the Framework for Industry-Specific Product Impacts (Product Framework). 📅 Date: March 18 ⏰ Time: 2pm CET / 9am ET 👉 Register here: https://lnkd.in/e4gsnCH7 This webinar will allow attendees to: 📌 Learn more about IFVI & VBA’s #impactaccounting methodology and the key components of our newest exposure draft 📌Ask questions 📌Receive guidance on how to provide feedback on the exposure draft Join the movement to shape a just and #sustainable global economy based on the full contribution of business to people and the planet. #IFVI #ValueBalancingAlliance #impactaccounting #impactvaluation #sustainability