The SGS Impact Valuation Framework is built around the six "capitals" recognized by the Integrated Reporting Framework as essential for business success: financial, manufactured, intellectual, human, social and natural. Our Framework includes 32 indicators across these capitals, specifically designed to evaluate our impacts. We use internationally recognized databases, globally accepted impact measurement approaches and academic research to build our calculation methodology.
The Capitals and Indicators
Using our Impact Valuation Framework, we calculate our positive and negative impacts in monetary terms (CHF). We calculate the traditional indicators of socioeconomic contributions, such as the taxes we pay, and add our positive impacts, such as the impact of our investment in community programs, employee training and well-being initiatives. Then we detract our negative impacts, such as the negative impacts of the waste we generate or the electricity we consume, to determine a total figure of the value to society that we have created in a given year.
Direct Operations and Supply Chain
Applying our Impact Valuation Framework, in 2019, our total value to society from our direct operations and supply chain was +CHF 6,579 million. The value of our positive benefit to society was +CHF 7,380 million. This was primarily created through profit generation, paying taxes and wages, investing in training and data security. We also generated CHF 801 million of negative societal impacts, primarily driven by the environmental footprint of our supply chain.
Value is created through not only our direct operations and supply chain, but also through our services. Our diverse service portfolio and geographic spread make it extremely complex to evaluate the impact of our services at a global level. We are currently developing a methodology for carrying out this analysis. Once finalized and implemented, we expect to see a significant increase in our value to society. Although we are unable to conduct an impact valuation across our entire service portfolio yet, we have piloted the impact of relevant individual services.