How We Manage Economic Performance
Our economic performance is managed as part of our business strategy. For a comprehensive discussion, see our Annual Report. Our Green Book measures our environmental and social profit and loss by applying financial values to a range of indicators on people, environment and community and progress on these is reported to senior management every six months.
The content of this webpage has been verified and assured.
Many stakeholders rely on our economic performance, both inside and outside the company. Strong economic performance means:
- Value is delivered to our shareholders
- Value is delivered through our services to society
- Employees are offered competitive salaries and benefits
- Obligations to suppliers and creditors are met
- Customer orders are fulfilled
- Governments gain tax revenues
- Local communities receive investment
We do not receive any significant financial assistance from governments. We do benefit from incentives in the form of grants from certain government schemes, for example, energy saving incentives, but these are of low value. However, this information is based on our global information gathering system. We will improve this system during the next two years and gear it towards more local information capturing. We expect improved reporting on this aspect.
Please see our Performance section for data on economic value generated and distributed this year.
With more than 80,000 employees, and a supply chain of over 50,000 suppliers in our trend countries alone, our indirect economic impacts are extensive but difficult to quantify. Some examples include:
- Efficiency: we work with organizations and governments to increase efficiency and productivity, and improve social and environmental conditions, often in less economically developed regions. For example, we are working with the Ministry of Health in Africa and in Latin America to employ the same radiographic technologies used for container scanning to x-ray patients in remote locations who would otherwise struggle to travel into cities for diagnostic services
- Securing investment: various services we provide help to give investors the confidence they need to fund projects. We help manage project risks by providing independent advice on issues such as technical due diligence, project monitoring and installation inspections. We are expert advisors to the Water Benefit Partners program, a public-private partnership involved in developing the Water Benefit Standard providing donors and investors with assurance on projects tackling water scarcity
- Enhancing skills and knowledge: the SGS Academy is a global network delivering training courses to SGS employees and customers in multiple languages, with 35 centers globally. SGS provides tailored training programs in professional and industry-specific skills, certification standards and legal compliance, many of which are accredited or certified. (See our 2014 Sustainability Review for case studies on the SGS Academy in Jakarta and Mumbai.)
Many of our services have indirect economic impacts – for more information on our services see Sustainability Services.
Going beyond net value added
Going beyond Gross Value Added [GVA]: Gross Value Added is employed by organizations to communicate their economic contribution to the country’s they operate in. However, GVA communicates a narrow view of contribution. Organizations do more good (and bad) than job creation, paying taxes and generating profits. Net Value Added ‘Plus’ [NVA+] provides a better reflection of economic contribution by capturing the full range of positive and negative impacts on the natural environment, employees, stakeholder networks and wider society.