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| ''Sustainability - metrics.'' | | The Treasurer's Wiki is powered by MediaWiki, the same basic platform as powers Wikipedia. |
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| (EP&L).
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| A financial measure of corporate performance in relation to the environment.
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| An EP&L is a form of natural capital accounting.
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| It takes explicit account, in monetary terms, of the effects of an organisation's activities on carbon emissions, water use, water pollution, land use, air pollution and waste.
| | *[http://en.wikipedia.org/wiki/Wikipedia:Tutorial/Editing] |
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| By doing so, an EP&L identifies and incorporates the financially quantified effects of actions that have time-lagged impacts - often negative - such as pollution. This type of item is not normally recognised so quickly in traditional financial reporting.
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| The EP&L is measured across an organisation's entire supply chain, as well as the internal operations of the organisation itself.
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| :<span style="color:#4B0082">'''''Footprint in supply chain'''''</span>
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| :"Leading sports brand Puma [identified in 2001 that] 94% of their environmental footprint orignated within their supply chain. [This] sparked a reduction in waste and negative externalities as they created systems to achieve new targets."
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| :''Sustainable and Social, Amy Nguyen, September 2020''
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| An EP&L can be a powerful tool to enhance the credibility and effectiveness of an organisation's corporate communications and actions on sustainability.
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| :<span style="color:#4B0082">'''''Positive presentation'''''</span>
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| :"Kering, the luxury fashion group, is a pioneer of the environmental profit and loss, and uses it as a tool across its brands to evaluate in monetary terms its environmental footprint.
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| :The group also analyses different irrigation systems to support sustainable cotton cultivation while securing quality on supply.
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| :What these examples show is that natural capital provides a framework enabling companies to communicate credibly and fulfil their corporate responsibility.
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| :As with Kering, it is possible to establish a baseline and use it in a reporting context to measure progress against environmental goals.
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| :Companies that identify and manage their natural capital and environmental impacts plus related risks can present themselves positively to both the investment community and other stakeholders."
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| :''The Treasurer magazine, Issue 1, February 2021, p41 - Naresh Aggarwal, associate director policy & technical, ACT''
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| Kering - the owner of Gucci and Saint Laurent - has made its EP&L methodology open source.
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| Kering identifies seven stages in its EP&L methodology:
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| #Decide what to measure
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| #Map the supply chain
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| #Identify priority data
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| #Collect primary data
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| #Collect secondary data
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| #Determine the monetary value of the data
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| #Calculate and analyse the results
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| :<span style="color:#4B0082">'''''What we have learned'''''</span>
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| :"Implementing measurement systems and presenting the results are the most important features of the EP&L.
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| :Identifying opportunities is only the start of what the EP&L can do for a company. The findings of the EP&L can subsequently help to boost a company’s performance, too."
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| :''Kering Sustainability - EP&L methodology - accessed February 2021''
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| == See also ==
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| * [[Association of Corporate Treasurers]]
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| * [[Benchmarking]]
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| * [[Biodiversity]]
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| * [[Carbon]]
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| * [[Emissions]] | |
| * [[Environmental concerns]]
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| * [[Environmental KPI]]
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| * [[Environmental Objective]]
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| * [[EP&L intensity]]
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| * [[Financial reporting]]
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| * [[Natural capital]]
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| * [[Open source]]
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| * [[Performance]]
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| * [[Profit and Loss account]]
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| * [[Recognition]]
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| * [[Supply chain]]
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| * [[Sustainability]]
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| * [[Triple bottom line]]
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| * [[Trucost]]
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| == External link ==
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| [https://www.kering.com/en/sustainability/environmental-profit-loss/ Kering's Environmental profit and loss tool]
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| [[Category:Accounting,_tax_and_regulation]]
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| [[Category:The_business_context]]
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| [[Category:Corporate_finance]]
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| [[Category:Investment]]
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| [[Category:Long_term_funding]]
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| [[Category:Compliance_and_audit]]
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| [[Category:Ethics]]
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| [[Category:Identify_and_assess_risks]]
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| [[Category:Manage_risks]]
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| [[Category:Risk_frameworks]]
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| [[Category:Risk_reporting]]
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| [[Category:Financial_products_and_markets]]
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