What is an impact assessment?
Businesses today face growing pressure to be transparent in their reporting - not only on their progress against ESG targets but also on the wider impact they are having on the planet, profits and people.
Your choices and measurements reveal your company’s value to stakeholders. The gained insight also points to the future direction of the company, influencing how decisions are made for companies and society.
Think of your triple bottom line as a profit and loss (P&L) account - the environmental P&L, the economic P&L and the social P&L.
What is an impact assessment?
What is an impact assessment and why is it important?
The importance of an impact assessment
Organisations traditionally focus on financial performance. A complete picture, however, includes the social, economic and environmental impacts. Activities have intended and unintended consequences that can be positive as well as negative. It is not about a single KPI: impact measurement is a toolbox of methodologies, approaches and processes that we use to help companies understand their value chain, their operating context and risks - as well as facilitate better decision making. Impact assessments help companies to understand these wider impacts. Impact assessments can help companies not only measure their impact historically but also improve on it going forward.
Benefits of impact assessments
- Strategic decision making: by understanding your impact, you can make informed choices that benefit your business and society.
- Improved stakeholder relationships: transparency builds trust with investors, regulators and customers.
- Compliance with regulations and understanding the consequences of regulatory changes.
- Resource efficiency: identifying areas for improvement can lead to more efficient use of resources and reduced costs.
- Innovation, since an impact assessment provides insights into the footprint of products and services. It also provides inputs into new products based on the environment, economic and societal value.
Impact assessment blog series
An impact assessment is an important strategic tool that helps organisations navigate complex terrains.
Impact assessment video series
Contact us
Lullu Krugel
Director | Africa and Southern Africa Sustainability Platform Leader, PwC South Africa
Tel: +27 (0) 82 708 2330
