Investor demand for information is driving new accounting models.
Accounting pioneers, like GIST, are enabling stock markets to take account of the impacts companies have on society and the environment by incorporating these factors into financial statements.
And this trend is here to stay. Pavan points out that “as the idea of measuring and managing impacts moves from the boutique world of impact investing to the mainstream world of investment impact; as Asset Managers and Asset Owners seek to know and manage portfolio externalities and impacts, we enter the brave new world of impact valuation, using natural sciences and economics to measure, monitor and manage what truly matters: the impacts of companies and portfolios on society.”
GIST helps investors and ESG professionals quantify positive and negative impacts on their portfolios and we have recently launched a tool for investors that calculates monetary values for companies’ non-financial externalities. Get in touch to learn more.