A New Vision of Value
This report – the follow-up to the 2012 report Expect the Unexpected – explores the increasing connections between corporate and societal value creation.
Externalities have been largely excluded from the measurement of corporate value because, historically, they have had little or no impact on cash flows or risk profiles. However, economic, social and environmental megaforces are transforming the operating landscape for business. As a result new regulations, growing stakeholder influence and changing market dynamics are driving the internalisation of business externalities at an increasing rate. Externalities are now part of every company’s value creation story.