Enabling the Renaissance: The Perfect Storm in True Cost Accounting
8
Enabling the Renaissance: The Perfect Storm in True Cost Accounting Bob Willard Author The New Sustainability Advantage
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Transcript of Enabling the Renaissance: The Perfect Storm in True Cost Accounting
Enabling the Renaissance: The Perfect Storm in True Cost Accounting
Bob Willard Author
The New Sustainability Advantage
[email protected] www.sustainabilityadvantage.com
ENABLING THE RENAISSANCE: THE PERFECT STORM IN TRUE COST ACCOUNTING
Intangibles
/ Reputation / Goodwill
Tangibles
/ Financials
THE “ICEBERG” OF COMPANY VALUE
2010
20% Tangibles
/ Financials
80%
Intangibles
/Reputation /Goodwill
!"#$%&'(&')$&*#+#,)$-.$/012#$
82%
18%
1995
68%
32%
1985
70%
30%
1975
Tangibles
/ Financials
Intangibles
/Reputation /Goodwill
Pollution
& Health Climate Change & Energy Crisis
Poverty &
Social Injustice Overharvesting &
Species Extinction
Food &
Water Crises
Regulators
Governments
Communities
Employees
(NGOs) (Scientists)
Customers
Competitors
Markets
Investors
THE “PERFECT STORM” OF RISKS
Customers Employees
CAPITALISM 2.0 Capitalism 1.0 Capitalism 2.0
Purpose of the Firm
Maximize shareholder value; ROI; Growth
Creating shared stakeholder value, including the Environment
Legitimate capitals Financial Financial, Natural, Human, Social
Bottom lines Profit -first Profit, People, Planet
Environmental and social impacts
Externalized Internalized
Accountability boundaries
The Firm The Firm’s value chain, over its products’ life cycles
Transparency As little as possible Naked
Business model Take-Make-Waste; Linear Borrow-Use-Return; Circular
Source of financial capital
Stock market; Big financial institutions; Absentee owners
Stock market; Smaller financial institutions; Customers; Employees; Local communities
Market focus Global Local
[email protected] www.sustainabilityadvantage.com
ENABLING THE RENAISSANCE: THE PERFECT STORM IN TRUE COST ACCOUNTING
