True Price launches new products

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True Price introduces a range of new tools tailored for businesses & financials and NGO’s & Institutions. We leverage on our world leading expertise in impact measurement and valuation to help professionals manage impacts. Our products build onto the familiar concepts that we developed like True Pricing and the Integrated Profit and Loss.

Please explore how we help businesses & financial institutions and NGO’s & Institutions.

ABN AMRO’s Main Contribution to Society Consists of Creating Financial and Social Capital

2016-03-16 ABN AMRO

One way that ABN AMRO understands the scope and complexity of its impact on society is by analysing the Integrated Profit & Loss (IP&L) account.

The IP&L attributes a financial value to non-financial effects, such as carbon emissions, a sense of community and well-being. The IP&L recognises the six capitals as defined by the International Integrated Reporting Council (IIRC).

This is in line with ABN AMRO’s current reporting approach. Together with True Price, a social enterprise that helps companies quantify and improve their societal impact, ABN AMRO started three IP&L pilot projects in 2015. True Price supported ABN AMRO in their first attempt to measure the impact of our mortgage services, our investments in the cocoa chain and the bank as a whole. The pilot projects produced a first indication of key value drivers, risks, opportunities and actions that could improve our impact on society.

A visual showing the IP&L of the Mortgages portfolio of ABN Amro in 2014 is provided below.

2016-03-16 15_30_50-PowerPoint Presentation - True_Price_-_ABN_AMRO_Integrated_Profit_and_Loss.pdf

For more information on our cooperation and to download the report: Introducing the Integrated Profit & Loss Account to ABN AMRO

Food Tank Report: The Real Cost of Food

2016-02-18 Food Tank twitter

Check out the report published by Food Tank on the subject of True Cost Accounting, The Real Cost of Food: Examining the Social Environmental, and Health Impacts of Producing Food. Food Tank’s report includes the case we did for Tony’s Chocolonely in 2013.
Danielle Nierenberg, the President of Food Tank, indicates that this report hopes to give an overview of the current work being done on True Cost Accounting and help point a way forward for future work on this issue. Moreover, Food Tank sees this publication as a call to action, the time is now to instill better accounting measures in food and agricultural production.

Download the report here (to download the report, you have to enter your contact details on the website of Food Tank).

New brief report: Integrated Profit & Loss

IPandL Integrated Profit and Loss_True Price

With the increasing importance of sustainability, businesses need to make complex decisions. How to juggle the interests of multiple stakeholders? How to compare natural, social and financial impact? How to meet the new rules on Integrated Reporting? We introduce to you: Integrated Profit and Loss (IP&L). The IP&L provides a robust and simple solution for companies. This new framework enables companies to make and communicate decisions in this new age of sustainability. This spring several multinationals and a financial institution will publish their first IP&L analyses.

Today businesses can only be competitive if they create value to society. The concept of steering on profit has shifted to the idea of steering on impact. However, these impacts concern multiple stakeholders and occur in different dimensions. This results in three important complications for companies: value is created for different stakeholders, impact on society comes in many forms and each of the impacts is expressed in a different language.

A visual showing the IP&L of the Mortgages portfolio of ABN Amro in 2014 is provided below.

2016-03-16 15_30_50-PowerPoint Presentation - True_Price_-_ABN_AMRO_Integrated_Profit_and_Loss.pdf

The IP&L is a proven and robust tool to give address to these complications. The framework helps to measure, value, manage and communicate impacts. It does not only give insight in the negative impacts associated with production, but also shows the positive external impacts, leading to a complete picture of how a company contributes to societal value creation. Achmea, AkzoNobel and BAM are good examples of companies that already used impact measurement and valuation to consider profit and loss on multiple dimensions. Altogether, IP&L is a clear guideline for executives and managers of today to make impact decisions.

For more information, click here for our new brief report on Integrated Profit and Loss.

The report Introducing the Integrated Profit & Loss to ABN Amro can be found here.

True Price & Tony’s Chocolonely Raise the Bar

At the annual Tony’s Fair, Tony’s Chocolonely published their Jaarfairslag 2014 (annual report, in Dutch), in which they announced that they intend to reduce the negative impact of their bar to zero by 2019. Tony’s has set this ambition on the basis of research of True Price.

Since 2012, Tony’s Chocolonely has been buying their cocoa beans directly from farmer cooperatives in Ivory Coast and Ghana: ‘from bean to bar’.  Besides sourcing Fairtrade and organic cocoa from Ghana, the farmers are even paid an additional premium. Tony’s Chocolonely was looking for a way to know, show, and improve the environmental and social costs of the cocoa. What is the impact of the premium? Which additional steps can they take to improve living conditions and environmental impacts? And how does Tony’s perform compared to non-sustainable alternatives?

“Tony’s Chocolonely is always looking for innovative ways to raise awareness and find solutions. In this context, our collaboration with True PriceTM is an interesting opportunity. This project allows us to quantify our progress, focus our attention, and refine our strategy.” – Arjen Boekhold, Chain Director

True Price’s role
True Price conducted a True Price scan to determine the footprint and monetize social & environmental costs like CO2 emissions, forced labour and income distribution throughout Tony’s supply chain. Our experts executed a similar exercise for non-sustainable cocoa to create a sector benchmark.

First outcomes
The True Price™ scan for Tony’s Chocolonely made negative externalities more visible and provided valuable insights into the opportunities for process improvement within Tony’s supply chain:

Tony’s is on the right track:
– Tony´s footprint was 40% lower than that of the average non-sustainable chocolate bar in 2013.
– Sustainable certifications are not substantial enough and much more investment is needed.
– The premium of at least 25% given to the farmers results in a higher net income & more training for local farmers.

Identified opportunities to improve:
Underpayment, land use, child & forced labour identifies, health care and knowledge-building of farmers are areas where Tony’s makes & can make a difference.
– Around 70% of environmental costs are at farm level. Land use, productivity, cacao prices, offer a room for improvement.

A peek into the future:
If all measures succeed, the future is bright: Tony’s aims to eliminate all environmental and social costs in their supply chain by 2019.