Every manager knows that nonfinancial performance contributes to the financial bottom line and vice versa, but how can you prove it? One of the most significant differences between leading sustainability companies and those lingering in the status quo is how they address the “intangible” benefits of a sustainability strategy. Currently, financial reports do not accurately convey the real value of a corporation’s commitment to behave more responsibly. Conversely, corporate social responsibility reports and other non-financial reporting often ignore business value all together. This results in valuable assets being left off balance sheets and imminent risks ignored. The integrated bottom line is the most effective and practical business tool able to provide directors and managers with a comprehensive view of business activities and in the end shareholder value.
NCS Integrated Bottom Line Services
Natural Capitalism Solutions pioneered the Integrated Bottom Line, which blends traditionally separate financial, environmental, and social assets and liabilities into a unified measure of financial success. NCS works with clients to monetize sustainability performance indicators and provide clearer, more consistent, and comparable reporting. Monetized performance indicators can include the positive dollar value associated with decreasing GHG emissions or enhancing brand reputation. The end result is a more accurate representation of corporate value, giving managers a measurable way to evaluate sustainability investments based on the value added to the company.
Our services include:
Sustainability Program Analysis: Attempting to address every sustainability opportunity or risk can be daunting and ineffective. Prioritizing opportunities that deliver the greatest value to business and stakeholders helps ensure long-term profitability. Building from Natural Capitalism Solutions’ extensive experience and the internationally recognized indicators from Global Reporting Initiative (GRI), NCS will help your company evaluate which sustainability risks and opportunities should be monetized, ensuring the project aligns with corporate priorities.
Monetize indicators: Once indicators have been established, NCS will work with your company to collect the necessary data and develop the relevant processes to efficiently and accurately monetize sustainability performance.
Financial Reporting: While there are multiple efforts under way to create a single reporting structure or “one report,” these efforts do not address the need to create a unified measure of success. Natural Capitalism Solutions will create an integrated financial report valuing your company’s sustainability performance, to ensure the financial value of environmental and social programs are taken into account in a systematic manner. The financial report can be paired with existing company frameworks, like profit and loss statements, or can be presented alongside traditional financial data. These reports will help to align the value of sustainability with business priorities and provide information to management to run the business more effectively on a day-to-day basis.
Integrated Governance and Communication
In order to make the clear link between sustainability performance and financial value to stakeholders, it is important to create alignment with CSR strategies, financial reporting, and overall communication efforts. Natural Capitalism Solutions works with your company to align and integrate sustainability performance into governance and reporting systems including quarterly statements, CSR reports, and outreach efforts. This process takes sustainability from the periphery to the forefront of your organization, ensuring sustainability-related assets and liabilities are properly accounted for and communicated.
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