Executive Report: Valuing Business Sustainability

Measure the value of sustainable business activities with tools and metrics.
NBS November 6, 2017
Executive Report
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Systematic Review
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Slides (PDF)
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NBS reviewed 30 years of reputable research and 159 studies to answer the question, "Does CSR create value for a firm?"

Metrics for Valuing Business Sustainability: An Introductory Guide synthesizes this research and outlines the mechanisims linking CSR activities to financial performance. It contains a framework to help you measure the business case for sustainability in your organization and suggests specific tools to guide your analysis. 

Valuing CSR allows it to compete for capital.

Describing CSR activities in terms of their impact on the bottom line enables financial decision-makers to compare CSR investments to other organizational priorities. Once CSR investments are translated into a common language, they can compete for capital alongside other firm activities.

This report equips financial decision-makers with the evidence from contemporary research. It will:

How do I measure CSR? Choose your metrics.

The report identifies three categories of metrics to guide your firm through the measurement process.
The easiest to measure, these are the end-state metrics with which the market evaluates performance, such as stock price or return on capital.
Operational Metric
Operational metrics capture the direct bottom-line impacts of CSR activities, and represent specific changes in costs or revenues associated with an activity.
Operational Metric
The hardest CSR impacts to capture are those metrics that reflect a firm’s improved position strategically, i.e. a firm’s ability to create value and manage risk, or intangibles such as customer loyalty and employee satisfaction.

This framework is designed to help financial executives and sustainability managers translate their CSR activities into dollars. By no means exhaustive, the framework presents examples of financial, operational, and strategic metrics and the relative strengths and weaknesses of each.

Who Should Read the Report

Watch the Webinar on How CSR Pays

 

Additional Resources

Executive Report

“It’s not what you know but who you know.” This guide shows how businesses can make social capital part of their decision-making and reporting.

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Reports and Articles

Maps help us make sense of our complex world. LCAs can do the same for your business.

Céline Zollinger
Reports and Articles

Opportunities for managers to make the case for sustainability to senior management are rare. Prepare for those rare opportunities with this forum report.

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