AkzoNobel 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.
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:
"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."
Pavan Sukhdev, CEO of GIST Advisory:
"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."
Following the success of the pilot, the company is now looking at scaling up the project.
AkzoNobel is a leading global paints and coatings company and a major producer of specialty chemicals. Calling on centuries of expertise, we supply industries and consumers worldwide with innovative products and sustainable technologies designed to meet the growing demands of our fast-changing planet. Headquartered in Amsterdam, the Netherlands, we have approximately 47,000 people in around 80 countries, while our portfolio includes well-known brands such as Dulux, Sikkens, International, Interpon and Eka. Consistently ranked as one of the leaders in the area of sustainability, we are committed to making life more liveable and our cities more human.
About True Price
True Price is a social enterprise that aims to contribute to a circular and inclusive economy that creates value for all people by providing the information needed in such an economy. True Price helps organizations - multinationals, SMEs, NGOs, governments - quantify, value and improve their economic, environmental and social impacts. True Price works directly with organizations by providing research services. In addition, True Price enables organizations to measure their impact through a multi-stakeholder platform that develops open source methods for impact measurement.