The Value Balancing Alliance is an alliance of international companies. The Alliance has published a whitepaper on the financial relevance of externalities. Externalities are uncompensated social and environmental costs or benefits, including climate and nature costs and benefits. This whitepaper provides evidence that exposures to environmental and social externalities are being reflected in prices. It concludes that incorporating externalities gives boards and investment committees decision-useful inputs for capital budgeting and performance measurement.
About the Publisher
Value Balancing Alliance is an alliance of international companies coming together with a common goal: to create a way of measuring and comparing the value of contributions made by businesses to society, the economy, and the environment – a metric not previously reflected in a company's balance sheet. The Alliance translates environmental and social impacts into comparable financial data. Members test the methodology to ensure feasibility, robustness, and relevance.
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