How we helped Schiphol Group map its societal impact using IP&L
In association with Schiphol Group we made an estimate of the impact of the activities at the Schiphol location. This visualised the added value of Schiphol’s activities. Furthermore, we have analysed two of their material topics: the extent to which holidays contribute to travellers’ well-being and the impact of CO2 emissions at the Schiphol location. These in-depth analyses showed Schiphol a new perspective on their impact.
Occasion of the study
Schiphol has a socio-economic function and creates value for its stakeholders, not only financial value but also value in terms of natural and social capital, for example. Schiphol Group started in 2014 to visualize their added value based on the capitals identified by the International Integrated Reporting Council (IIRC). Subsequently, in 2015 the company took the first steps to monetise value. This method was used to make such values tangible.
Description and key results
In 2015, Schiphol teamed up with True Price to explore their impact on the various forms of capital. This study consisted of two main parts. First, an analysis based on the Integrated Profit and Loss was conducted. This estimated the positive and negative impacts on the six capitals identified by the IIRC.
Second, this study included two main in-depth analyses: the extent the which holiday contributes to travellers’ well-being and the impact of CO2 emissions at the Schiphol location. Results of the first analysis show the plausibility that 10% of the current number of holiday-makers would not go on holiday by plane if Schiphol did not exist. This means that the airport is an important link in the travel chain. For each holiday by air that would be not possible without Schiphol, approximately half the impact can be attributed to Schiphol and the other half to hotels, restaurants and other players in this chain. In addition, the study showed that when visiting friends/family during a trip, the net value of a holiday is higher. The second, CO2, analysis shows the impact of the flights themselves. By removing air traffic from the analysis, it is possible to identify which portion of the emissions is to be attributed to Schiphol’s own business activities.
Advantages and next steps
Schiphol has now developed their own method to examine whether the monetisation of non-financial values creates added value when making investment decisions. The company has a better understanding of the impact of their activities and also indicated to further develop this understanding in 2016 (Schiphol, 2015).
Curious to read more about Integrated Profit & Loss? Read it in our recent report or get in touch.
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