imported>Doug Williamson |
imported>Doug Williamson |
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| ''Sustainability - impact reporting''. | | 1. ''Index numbers''. |
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| Impact intensity of profits measures the relationship between a company's profits and its most important positive - or negative - effect on ESG issues.
| | In the context of index numbers, rebasing can refer to either: |
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| The relevant detailed measure of ESG effect will differ, according to the business.
| | - changing the weights in an index, such as an inflation index, |
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| | - changing the reference period of an index number series. |
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| :<span style="color:#4B0082">'''''Impact intensity of profits must becoming guiding framework'''''</span>
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| :"For the power company Enel, the primary issue is the environmental impact of its operational footprint, which means the company should make investment decisions that optimize profit per tons of CO2 emitted.
| | The weights and the reference period may be changed at the same time. |
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| :For Nestlé, the primary concerns are the nutritional value of its products and the ESG effects of sourcing from smallholders.
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| :The company might optimize profit generated per micrograms of nutritional value in its products and the cost of raw materials relative to farmer income and environmental impact in its sourcing...
| | 2. ''Tax.'' |
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| | In relation to tax, rebasing means re-stating the base value of an asset for tax calculation purposes. |
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| :The mathematical relationship between changes in environmental or social factors and the resulting changes in profit must become the guiding framework for decision-making at all levels within the company.
| | The re-statement would usually be upward, thereby reducing any potentially taxable gain calculated on any surplus over the base value. |
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| :The results are likely to lead to significantly different choices that not only improve ESG performance but also help reposition the company in ways that improve financial performance."
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| :''Harvard Business Review - The Essential Link Between ESG Targets & Financial Performance - Mark R Kramer & Marc W Pfitzer - September 2022.''
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| == See also == | | == See also == |
| * [[Business impact analysis]] | | * [[Assets]] |
| * [[Capital intensity]] | | * [[Base value]] |
| * [[Carbon intensity]] | | * [[Capital gain]] |
| * [[Environmental impact]] | | * [[Capital Gains Tax]] |
| * [[Environmental Impact Assessment]] (EIA)
| | * [[Corporation Tax]] |
| * [[EP&L intensity]]
| | * [[Index]] |
| * [[ESG]]
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| * [[Impact]]
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| * [[Impact accounting]] | |
| * [[Impact investing]] | |
| * [[Impact reporting]]
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| * [[Impact Taskforce]]
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| * [[Impact-weighted accounts]]
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| * [[Sustainability]]
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| * [[Total Societal Impact]]
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| * [[Value Reporting Foundation]] (VRF)
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| ==External link==
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| *[https://hbr.org/2022/09/the-essential-link-between-esg-targets-financial-performance#:~:text=The%20%E2%80%9Cimpact%20intensity%20of%20profits,negative%20effect%20on%20ESG%20issues. Harvard Business Review - The Essential Link Between ESG Targets & Financial Performance - Mark R Kramer & Marc W Pfitzer - September 2022]
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| [[Category:Accounting,_tax_and_regulation]] | | [[Category:Accounting,_tax_and_regulation]] |
| [[Category:The_business_context]]
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| [[Category:Corporate_finance]]
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| [[Category:Investment]]
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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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1. Index numbers.
In the context of index numbers, rebasing can refer to either:
- changing the weights in an index, such as an inflation index,
- changing the reference period of an index number series.
The weights and the reference period may be changed at the same time.
2. Tax.
In relation to tax, rebasing means re-stating the base value of an asset for tax calculation purposes.
The re-statement would usually be upward, thereby reducing any potentially taxable gain calculated on any surplus over the base value.
See also
