AkzoNobel has announced that it is exploring new ways of increasing business value by piloting a unique four dimensional approach.
The so-called 4D method looks at the whole value chain and is designed to measure both positive and negative environmental, human, social and financial impact. Already piloted at the company’s Pulp and Performance Chemicals business in Brazil, the innovative approach has been confirmed by project partner True Price as the first of its kind to be published.
Six sites in Brazil participated in the pilot, which took place during 2014. The findings – analysed in cooperation with sustainability research organization True Price and economist Pavan Sukhdev – are already being used to make relevant improvements.
According to AkzoNobel CEO Ton Büchner, “We wanted to push the boundaries of our impact assessment and develop a deeper understanding of our influence across the whole value chain. By attaching an economic value to the positive and negative aspects of each dimension, we can gain valuable insights into how we can drive longer term value not only for our shareholders, but also for the environment, people and society at large. In addition, the results will inform our strategic decision-making and provide further momentum for our ongoing efforts to do more with less.”
Adrian de Groot Ruiz, Executive Director at True Price added, “A 4D method such as this is the future of integrated thinking and reporting. Companies can use it internally to shape innovations and strategies that create shared value for shareholders and society.”
“I am delighted with AkzoNobel’s pilot study. It showcases the future of impact valuation and integrated reporting and is a first-of-its-kind integrated method in the four dimensions of capital – financial, natural, social and human," said Pavan Sukhdev, CEO of GIST Advisory.
Following the success of the pilot, the company is now looking at scaling up the project.
