imported>Doug Williamson |
imported>Doug Williamson |
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| ''Sustainability - metrics.'' | | 1. ''Economics - money supply - central banks.'' |
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| (EP&L).
| | The part of the money supply that is central bank liabilities. |
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| A financial measure of corporate environmental performance.
| | It includes physical money (banknotes and coins), demand deposits at the central bank and any domestic central bank digital currency. |
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| An EP&L is a form of natural capital accounting.
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| | 2. ''Funding - public sector.'' |
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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.
| | Funding for projects or activities sourced from the public sector. |
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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.
| | Contrasted with ''private money.'' |
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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 == | | == See also == |
| * [[Association of Corporate Treasurers]] | | * [[Broad money]] |
| * [[Benchmarking]] | | * [[Central bank]] |
| * [[Biodiversity]] | | * [[Central bank digital currency]] (CBDC) |
| * [[Carbon]] | | * [[Coin]] |
| * [[Emissions]] | | * [[Digital public money]] |
| * [[Environmental concerns]] | | * [[Funding]] |
| * [[Environmental KPI]] | | * [[M0]] |
| * [[Environmental Objective]] | | * [[M1]] |
| * [[EP&L intensity]] | | * [[Money]] |
| * [[Financial reporting]] | | * [[Money supply]] |
| * [[Natural capital]] | | * [[Private money]] |
| * [[Open source]] | | * [[Public ]] |
| * [[Performance]] | | * [[Public private partnership]] |
| * [[Profit and Loss account]] | | * [[Public sector]] |
| * [[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]] | | [[Category:Accounting,_tax_and_regulation]] |
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| [[Category:Investment]] | | [[Category:Investment]] |
| [[Category:Long_term_funding]] | | [[Category:Long_term_funding]] |
| [[Category:Compliance_and_audit]] | | [[Category:Trade_finance]] |
| [[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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