People : Planet : Profit

The Value of B|23

The Value of B|23

Business performance is no longer measured on short-term financial returns to shareholders. Beyond the traditional financial metrics, stakeholders such as customers, workforce, society, governments, and investors all demand greater organisational transparency.

Sustainability is becoming the lens through which an organisation is now judged and presents an opportunity to build resilience for the long term. It is important to demonstrate the value of activities such as B|23. At this time however the methodology for calculating the value is still in it its formulative stage. The methodology used to make this calculation is based on the current industry best practise. To this end we have attempted to factually demonstrate the value that this programme has created.

Valuing an ESG strategy encompasses:

  • Stakeholder Capitalism
  • Risk Management
  • Reputation Loss
  • Access to Finance
  • Contract Loss
  • Business Responsibility

Valuations - Alternative Methodologies

Approach 1: McKinsey Model of ESG Value Creation (2019)

Estimated annual valuation of c.£2.8million when collectively applied to the current B23 cohort. Enterprise value enhancement research by Deloitte shows that a higher ESG score can increase enterprise value by 1.8 times.

Therefore, estimated annual valuation of c.£3.9million when collectively applied to the current B23 cohort.