Short presentation about the Measuring Impact Framework of the World Business Council for Sustainable Development (WBCSD), which was developed in collaboration with over 20 WBCSD member companies, reviewed by 15 external experts, and co-branded by the International Finance Corporation (IFC). It is designed to help companies understand their contribution to society and use this understanding to inform their operational and long-term investment decisions, and have better-informed conversations with stakeholders.

1. An Introduction to the WBCSD Measuring Impact Framework
September 2013

2.  The business case for measuring socio-economic
impact
 WBCSD Measuring Impact Framework
– Approach
– Methodology
 Case studies
 Key lessons & conclusions
Presentation overview

3. Why do companies measure their
socio-economic impact?

4. The Framework aims to help companies
measure and assess their societal contribution
and use this understanding to inform operational
and future investment decisions
It is also designed to:
 underpin the business license to operate;
 improve the quality of stakeholder
engagement;
 help manage risks more effectively
 enhance the business contribution to society
 improve efficiencies
 understand the role of business vis a vis
governments
Measuring Impact Framework

5.  Built by business for business
(working group of 20+ companies)
 Co-branded with the International
Finance Corporation (IFC)
 Starts from what business does –
business
 Moves beyond traditional reporting
 Encourages stakeholder engagement
 Flexible
 Complements existing tools
 Externally reviewed (WRI, GRI, Harvard, IFC, Oxfam, etc.)
Key features of the Framework

6. 3 components of the Framework
Online
applicationThe business case
Methodology

7. Methodology
Stakeholder
engagement
Step 1 - Set
boundaries
Step 2 – Measure direct
and indirect impacts
Step 3 – Assess
contribution to
development
Step 4 – Prioritize
management
response
Measuring Impact Framework
Decision by individual
companies

8. Merging two perspectives
Development/
societal perspective
Economic Growth
Poverty Alleviation
Education
Social Stability
Public Health
Human Rights
Governance
Capacity Building
Enterprise Development
Environmental Sustainability
Broader development
contribution
Business
perspective
Infrastructure
Products and Services
Jobs
Skills and Training
Procurement
Taxes
Corporate Governance
Environmental Management
Business
activity
Direct
impacts
Indirect
impacts

9. Business activities (STEP 1)
• Corporate Governance
• Environmental Management
Governance &
Sustainability
• Infrastructure
• Products & ServicesAssets
• Jobs
• Skills & TrainingPeople
• Taxes
• Procurement
Financial
Flows

10. Mapping the impacts (STEP 2)
Direct
Direct
Indirect
Indirect
Indirect
Activity
Activity
Indirect
Direct
Indirect
CONTEXTUAL UNDERSTANDING

11. Decision making framework:
response to impacts (STEP 3 & 4)
MITIGATE
PARTNER
SCALE UP
LEVERAGE
DIRECT
INDIRECT
NEGATIVE POSITIVE
Optional: Stakeholder
Engagement

12. Case studies on application of the
WBCSD framework
 Eskom – Measuring its footprint in South
Africa
 Nestlé – Developing & piloting inclusive
business models
 Saipem – Measuring social value creation at
fabrication yard in Indonesia
 Newmont Ahafo Gold – Business linkages
with local communities
 Ecosecurities – Project development tool for
CDM & voluntary carbon markets

13.  Success of the methodology:
– Positive user response
– Evidence of use for business decision-making processes
– Results chain & indirect impacts
– Stakeholder engagement
 Challenges:
– Analyzing complex development issues
– Location/context specific (no aggregation)
– Examining negative impacts
– Rapidly emerging impact measurement ‘landscape’
Lessons & conclusions

14. www.wbcsd.org/impact.aspx
Kitrhona Cerri
measuringimpact@wbcsd.org
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