ESG as opportunity:
Triple Bottom Line connects financial performance with other corporate achievements.
Many companies are under pressure to deliver strong financial results. They suffer from ongoing cost-cutting programs, insufficient growth, cumbersome planning processes and often weak ESG ratings.
We see ESG as an opportunity and driver for the company, because with ESG, investments in the future can be shown as performance, not as a cost factor, as is the case with financial reporting.
Obermatt Triple Bottom Line
According to the classic Triple Bottom Line approach, sustainability is composed of three dimensions: economy, ecology and social. A company acts sustainably when it pursues economic (Profit), environmental (Planet) and social (People) goals equally. With the Triple Bottom Line approach, your financial and ESG performance can be presented together:
In this representation, financial performance and ESG performance are combined into an overall performance, which in the example lies slightly above the target of 100%.
All three representations use the same financial and ESG performance data. The different presentations serve different communication needs. This allows you to maintain control over your performance story and communicate your own ESG rating.
ESG as opportunity
ESG is an opportunity from the company's perspective, as investments in the future can be better justified. Looking at the company's past profit, this does not work, because investments in future-oriented areas such as marketing, executives, and research and development (R&D) reduce profit. Profit increases when less is done for the future.
ESG corrects this misinterpretation of financial accounting.
Investments in employees, customers and products as well as higher environmental efficiency can be reported as achievements, thus expanding the company's performance record, displayed as a green bar and labeled with the well-known abbreviations.
How to properly present overall ESG performance?
Most reports only contain a listing of selected ESG metrics and activities. What is actually needed is an ESG performance assessment that quantifies the green bar.
What you receive
With the Obermatt Triple Bottom Line (People, Planet, Profit), you receive a comprehensive analysis of your performance, for illustration and as a basis for reflection for investors and rating agencies, presenting you in the best possible light.
The Triple Bottom Line includes the identification and definition of relevant ESG and financial metrics, target-setting for individual metrics, calibrating scales, determining weighting and documentation of all parameters in the Triple Bottom Line definitions. This also positions you optimally to incorporate these performance indicators into compensation in just a few steps.
The gold standard of performance measurement
For over 20 years, we have been optimizing all aspects of performance measurement. We look beyond just share price returns and can consolidate and index any quantitative as well as qualitative metrics. With Obermatt, numerous listed and large family-owned companies receive precise analyses to better manage their company and grant appropriate compensation. Our pragmatic approach saves you time and money.
Ready for better performance measurement?
Let us shape your performance story together.
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