Measuring Eco and Social Impacts to Redefine Business Value: PwC & Puma

Sustainability mega-trends such as resource constraints, population growth and demographic changes are beginning to have significant financial impacts in the ‘here and now’, causing many prominent business leaders to rethink the impact on their businesses. Compound growth in consumption in the face of finite resources suggests competition for access, price increases of resources, and regulatory pressure. The companies who have measured their reliance on natural resources, such as clean air, water, and forestry, will be well positioned to proactively manage their resource usage as it becomes more of an issue and impact on the bottom line.

The question is, why would a company be transparent about their environmental impact?  Metrics exist to measure the dollar value of corporate environmental impact - but logic would seem to dictate that in lieu of regulation, companies would not voluntarily go through the valuation process and especially not want any negative impact to be publicized. Yet some companies are doing both -- and for economically rational reasons.

The valuation process gives management insights as to where they may have the largest impact and potentially highest risk or opportunity. Beyond more efficient use of resources, other solutions may evolve such as mitigation technology and substitutes for existing resources. First-adopters have the opportunity to differentiate their firms and capture market share. Leaders may use this information to minimize the environmental and business risks involved in specific operations and to protect near term profits and long term continuity. 

PUMA’s Environmental Profit and Loss Account (E P&L) is a long-term, three-stage process to consider PUMA’s and its supply chain’s environmental, social and economic impacts, ultimately leading to the development of an all encompassing Environmental, Social and Economic Profit and Loss Account.

More information on Puma's Environmental KPI Methodology can be found at: 

http://www.ukmediacentre.pwc.com/imagelibrary/downloadMedia.ashx?MediaDetailsID=1925

For More Information on Puma's Greenhouse Gas Emissions Valuation Method can be found at: 

http://www.ukmediacentre.pwc.com/imagelibrary/downloadMedia.ashx?MediaDetailsID=1927

Lauren specializes in the integration of sustainability issues into investment decisions. As a Director in the Sustainable Business Solutions practice at PwC she leads work on sustainability strategy for corporations and financial institutions. She has 14 years of experience working with corporations to enhance revenue and mitigate risk. As a management consultant she has worked to monetize environmental assets for corporations and financial institutions. As an investment banker she has structured financial products to hedge portfolio and transaction-specific risk. Lauren has a Masters in Environmental Engineering, an MBA in Finance and a BA in Public Policy. She has travelled… [Read more about Lauren Koopman]