Measuring Stakeholder Capitalism
October 18th 2020 - Edition #57
The World Economic Forum released two weeks ago a report (“Measuring Stakeholder Capitalism: Toward Common Metrics and Consistent Reporting of Sustainable Value Creation”) proposing a set of ESG metrics that companies can report on, regardless of their industry or region. Organized around the pillars of principles of governance, planet, people and prosperity, the identified metrics and disclosures align existing standards, enabling companies to collectively report non-financial disclosures. These metrics (so called stakeholder capitalism metrics and disclosures) were developed in collaboration with Deloitte, EY, KPMG and PwC, and are now up for discussion on an open consultation process with corporates, investors, standard-setters, NGOs and international organizations.
The document was announced at the fourth annual Sustainable Development Impact Summit and delivers on a commitment from the World Economic Forum Annual Meeting 2020 in January. Since then, 120 members of the Forum’s International Business Council have shown strong support for ESG metrics, with some companies expected to begin incorporating them into their reporting immediately.
“This is a unique moment in history to walk the talk and to make stakeholder capitalism measurable,” says Klaus Schwab, Founder and Executive Chairman, World Economic Forum. “Having companies accepting, not only to measure but also to report on, their environmental and social responsibility will represent a sea change in economic history.”
I am in no doubt that this is a key “missing link” – standardisation of ESG metrics that do matter – in the understanding of which companies do act as Responsible Business. As it is the notion of Impact Accounting which will be the subject of these messages next week.
Have a great and impactful week!
Nuno Moreira da Cruz
Center for Responsible Business & Leadership
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"Have a Great and Impactful Week!" is the weekly newsletter from CATÓLICA-LISBON's Center for Responsible Business & Leadership. You can subscribe to "Have a Great and Impactful Week!" here.
"Have a Great and Impactful Week!" is sent out every Sunday at 5PM, bringing new insights on the world of corporate responsibility, sustainability and responsible leadership. It is often signed by the Center's Executive Director, Nuno Moreira da Cruz. Please find all the previous issues of "Have a Great and Impactful Week!" here.