With the increasing importance of sustainability, businesses need to make complex decisions. How to juggle the interests of multiple stakeholders? How to compare natural, social and financial impact? How to meet the new rules on Integrated Reporting? True Pric introduced: Integrated Profit and Loss (IP&L). The IP&L provides a robust and simple solution for companies. This new framework enables companies to make and communicate decisions in this new age of sustainability. This spring several multinationals and a financial institution will publish their first IP&L analyses.
Today businesses can only be competitive if they create value to society. The concept of steering on profit has shifted to the idea of steering on impact. However, these impacts concern multiple stakeholders and occur in different dimensions. This results in three important complications for companies: value is created for different stakeholders, impact on society comes in many forms and each of the impacts is expressed in a different language.
The IP&L is a proven and robust tool to give address to these complications. The framework helps to measure, value, manage and communicate impacts. It does not only give insight in the negative impacts associated with production, but also shows the positive external impacts, leading to a complete picture of how a company contributes to societal value creation. Achmea, AkzoNobel and BAM are good examples of companies that already used impact measurement and valuation to consider profit and loss on multiple dimensions. Altogether, IP&L is a clear guideline for executives and managers of today to make impact decisions. For more information, click here for the new brief report (pdf) on Integrated Profit and Loss.