WifOR Institute’s Post

🌍 How can we empower companies to measure their true societal impact just as they measure profits? Every organization has an impact – yet most externalities are not reflected in financial statements. In a recent interview with Daniel Baumann from dfv Mediengruppe (Deutscher Fachverlag GmbH), I discussed how Impact Accounting can help companies to assess and improve their value to society.     Key takeaways:  - Currently, sustainability reporting includes physical data, such as “0.15 micrograms of fine dust per cubic meter.” However, these metrics can be difficult to interpret and compare with other indicators, like “liters of water consumption.”  - Impact Accounting converts physical data into one standardized monetary unit (euros), which reflects the costs and benefits of sustainability indicators to society. Thereby, like in financial accounting, different indicators become comparable to provide business leaders with an actionable data basis for decision-making.  - At WifOR Institute, our goal is that Impact Accounting is as firmly embedded in companies as financial accounting. This would motivate companies to move beyond profit optimization and focus on achieving the greatest overall impact.    ✏️ Read the article (in German, €) here: https://lnkd.in/d6PtdRkM     At WifOR Institute, we’ve partnered with GIST Impact and jointly released our value factors – supported by the Capitals Coalition, the Value Balancing Alliance, and the International Foundation For Valuing Impacts (IFVI) Impacts.     🔗 Learn more about our framework here: https://lnkd.in/dbDyAqgC    #Impact  #ImpactValuation  #ImpactAccounting  GREEN.WORKS - Wissenshub grüne Transformation