WBCSD Measuring Impact Framework
14
An Introduction to the WBCSD Measuring Impact Framework September 2013
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Short presentation about the Measuring Impact Framework of the World Business Council for Sustainable Development (WBCSD), which was developed in collaboration with over 20 WBCSD member companies, reviewed by 15 external experts, and co-branded by the International Finance Corporation (IFC). It is designed to help companies understand their contribution to society and use this understanding to inform their operational and long-term investment decisions, and have better-informed conversations with stakeholders.
Transcript of WBCSD Measuring Impact Framework
An Introduction to the WBCSD Measuring Impact Framework
September 2013
The business case for measuring socio-economic impact
WBCSD Measuring Impact Framework
– Approach
– Methodology
Case studies
Key lessons & conclusions
Presentation overview
Why do companies measure their socio-economic impact?
The Framework aims to help companies measure and assess their societal contribution and use this understanding to inform operational and future investment decisions
It is also designed to: underpin the business license to operate; improve the quality of stakeholder
engagement; help manage risks more effectively enhance the business contribution to society improve efficiencies understand the role of business vis a vis
governments
Measuring Impact Framework
Built by business for business (working group of 20+ companies)
Co-branded with the International Finance Corporation (IFC)
Starts from what business does – business
Moves beyond traditional reporting
Encourages stakeholder engagement
Flexible
Complements existing tools
Externally reviewed (WRI, GRI, Harvard, IFC, Oxfam, etc.)
Key features of the Framework
3 components of the Framework
Online applicationThe business case
Methodology
Methodology
Stakeholder engagement
Step 1 - Set boundaries
Step 2 – Measure direct and indirect impacts
Step 3 – Assess contribution to development
Step 4 – Prioritize management
response
Measuring Impact Framework
Decision by individual companies
Merging two perspectives
Development/societal perspective
Economic Growth
Poverty Alleviation
Education
Social Stability
Public Health
Human Rights
Governance
Capacity Building
Enterprise Development
Environmental Sustainability
Broader development contribution
Bu
sin
ess
per
spec
tive
Infrastructure
Products and Services
Jobs
Skills and Training
Procurement
Taxes
Corporate Governance
Environmental Management
Business activity
Direct impacts
Indirect impacts
Business activities (STEP 1)
• Corporate Governance• Environmental Management
Governance & Sustainability
• Infrastructure• Products & ServicesAssets
• Jobs• Skills & TrainingPeople
• Taxes• Procurement
Financial Flows
Mapping the impacts (STEP 2)
Direct
Direct
Indirect
Indirect
Indirect
Activity
Activity
Indirect
DirectIndirect
CONTEXTUAL UNDERSTANDING
Decision making framework: response to impacts (STEP 3 & 4)
MITIGATE
PARTNER
SCALE UP
LEVERAGE
DIRECT
INDIRECT
NEGATIVE POSITIVE
Optional: StakeholderEngagement
Case studies on application of the WBCSD framework
Eskom – Measuring its footprint in South Africa
Nestlé – Developing & piloting inclusive business models
Saipem – Measuring social value creation at fabrication yard in Indonesia
Newmont Ahafo Gold – Business linkages with local communities
Ecosecurities – Project development tool for CDM & voluntary carbon markets
Success of the methodology:
– Positive user response
– Evidence of use for business decision-making processes
– Results chain & indirect impacts
– Stakeholder engagement
Challenges:
– Analyzing complex development issues
– Location/context specific (no aggregation)
– Examining negative impacts
– Rapidly emerging impact measurement ‘landscape’
Lessons & conclusions
