Analysis drives Performance

ESG as an opportunity:
Tripple Bottom Line combines financial performance with other management success

Many companies are under pressure to deliver strong financial performance. They suffer from ongoing cost-cutting programs, too little growth, cumbersome planning processes and often weak ESG ratings.

We see ESG as an opportunity and a driver for the company because ESG allows investments in the future to be shown as an achievement rather than a cost, as is typically the case with financial reporting.

Obermatt Triple Bottom Line

According to the classic Triple Bottom Line approach, sustainability is composed of the three dimensions of people, planet and profit. A company acts sustainably if it pursues all three goals with equal priority. With the Triple Bottom Line, your financial performance can be mapped alongside your ESG performance:

In this illustration, the financial performance and the ESG performance are converted into an overall performance, which in the example is slightly above the target of 100%.

Here is an alternative representation that shows the contribution of each element to the overall performance. We call this the Triple Bottom Line.

With the Triple Bottom Line, targets can be weighted differently. Here, profit was weighted at 2/3, ESG at 1/3, with governance weighted at only half the level of social and environmental goals.

All three representations use the same financial and ESG performance data but meet different communication needs. This gives you more control over your performance story, as well as your own ESG rating Integrate the observations with the graphics so that the statements can be understood more quickly.) The overall performance has decreased compared to the unweighted variant (smaller orange overall bar). Reason: Financial performance was below target. In this example, the overall performance fell from 114% to 104% due to the higher weighting of financial performance. The overall performance reacts only very weakly to changes in the weighting provided that the goals have been set sensibly and that the goal achievement is in the desired target field of 80% to 120%. In the example, the weighting of the financial performance was increased by 266.6% from ¼ (25) to ⅔ (66.6%) and the overall result fell by only 8.7% from 114 to 104 .

ESG as an opportunity

ESG is an opportunity for companies because investments in the future can be put in context and better justified. Simply looking at the company's past profits will not achieve this, because investing in future-oriented areas such as marketing, employees and research and development (R&D) comes at the cost of short term profit. Profit is higher when investments are lower.

ESG corrects this misinterpretation of financial accounting.

Investments in employees, customers and products, as well as greater environmental efficiency, can be reported as services and thus expand the company's performance record, shown as a green bar and labeled with the familiar abbreviations.

Obermatt presentation of total performance with traditional financial and ESG metrics

How do you effectively show overall ESG performance?

In most reports, you only find a list of selected ESG key figures and activities. What is needed is an ESG performance assessment that quantifies the green bar.

What you get

With the Obermatt Triple Bottom Line, you receive a complete analysis of your performance, which shows investors and rating agencies your overall performance. This holistic view puts you in the best possible light.

The Triple Bottom Line includes the identification and definition of the relevant ESG and financial performance indicators, the target setting of the individual indicators, the calibration of the scales, the determination of the weighting as well as a documentation of all parameters in the Triple Bottom Line definitions. At the same time, this puts you in an optimal position to incorporate these performance indicators into your compensation in just a few steps.

Analysis drives Performance

ESG as an opportunity:
Tripple Bottom Line combines financial performance with other management success

Obermatt Triple Bottom Line

ESG as an opportunity

How do you effectively show overall ESG performance?

What you get

The masters of measurement

info@obermatt.swiss

+41 44 388 92 25

Analysis drives Performance

ESG as an opportunity: Tripple Bottom Line combines financial performance with other management success

Obermatt Triple Bottom Line

ESG as an opportunity

How do you effectively show overall ESG performance?

What you get

The masters of measurement

info@obermatt.swiss

+41 44 388 92 25

ESG as an opportunity:
Tripple Bottom Line combines financial performance with other management success