Business knows that what gets measured - gets done. As more and more companies embed sustainable development into their core business strategy, it is becoming increasingly important that we be able to measure progress towards building a more sustainable and inclusive world. Only by measuring and assessing the impact of our actions can we understand what works and what doesn't work and begin to change the way we do business to enhance our positive impact.
In recent years, the WBCSD and others have helped arm companies with the tools they need to start quantifying their contribution to sustainable development. Tools such as the GHG Protocol, Global Water Tool and Ecosystems Services Review have proven useful for understanding a range of environmental impacts.
Our most recent contribution to the toolbox broadens the scope of measurement to include economic and social impacts. The Measuring Impact Framework, launched by the WBCSD Development Focus Area, aims to help companies understand their contribution to society in the areas where they operate. They can then use this understanding to inform their operational and investment decisions and have better-informed conversations with stakeholders.
The Framework consists of 3 components:
1) The business case for measuring impacts, entitled “Beyond the bottom line,” highlighting the experience of several WBCSD member companies;
2) A four-step methodology to identify, measure, assess, and manage impacts; and
3) An Excel-based user guide that helps companies carry out the assessment.
The Framework reflects the collaborative work of over 25 member companies spanning 2 years and can be adapted to any company in any industry operating anywhere in the world. It aims to move beyond traditional reporting by not only helping companies measure their direct impacts and incorporate indirect impacts into their measures of success. It then encourages companies to put these impacts in the development context and ask: what does this mean for the socio-economic development and environmental sustainability of the communities around our business operations?
As highlighted in the Statement of Intent for Doing Business with the World, signed by the leaders of 12 WBCSD member companies, business is committed to moving beyond corporate philanthropy to search for responsible, sustainable and inclusive business models that are good for business and good for development. Key to this commitment is the need to measure the impact of these models and use the lessons learned to modify the models and further optimize the business contribution to society as a whole. We are now working with companies and organizations to implement the Framework and look forward to sharing the lessons learned in the months to come!
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