Company impact profile
The Corporate Impact Analysis tool generates an impact profiles of the company. The profile provide an overview of significant impact areas based on the company’s typology, the sectors it supports and the countries it is operating in. Impact profiles do not reflect the company’s impact performance.
Holistic Impact Analysis
Holistic impact analysis is the process of identifying the impact areas that can be positively and/ or negatively associated with an entity and/ or activity, and of assessing the entity’s and/ or the activity’s impact performance vis a vis its most significant impact areas.
It distinguishes itself by the systematic consideration of positive and negative impacts across the three pillars of sustainable development. It is undertaken with a view to anticipating and managing unintended consequences, and to leveraging the interconnectedness of impact areas in order to develop innovative business solutions with better cost to impact ratios.
An impact is the effect or influence of one person, thing or action on another (New Oxford Dictionary).
Impact Areas & Topics
Impact Areas are the “themes” of the impacts. The Impact Areas used in this tool are derived from the PI Impact Radar (PII, 2018)., a compilation that covers the three pillars of sustainable development (economic, environmental, social). Most Impact Areas can be broken down into one or more Impact Topics, which are ‘sub-themes’ of the Impact Areas. Thus, ‘access to food’, ‘food quality’ and ‘food security’ are all Impact Topics within the broader Impact Area of ‘food’.
Figure 1: Impact Radar
Source: Impact Radar, PII, 2018
Impact needs, are the environmental, social and economic needs of the countries in which the company operates. Understanding these is an integral part of impact identification and assessment.
Impact management covers all actions taken to drive positive impact and reduce negative impacts:
identifying significant impacts, measuring them, setting appropriate targets, taking action to reach those targets, monitoring their attainment, constantly improving processes and outcomes/ performance, communicating both on process and performance. Effective impact management is a function of the quality of the governance, resources and processes established by the bank to reduce its negative impacts and increase its positive impacts.
Impact performance actual delivery of positive impacts and management of negative impacts. It can be quantitatively and/or qualitatively measured per impact area through indicators and metrics. It is judged relative to specific targets and benchmarks (e.g. as set by policy goals and targets or in industry standards).
The company or bank’s impact performance, among other things, is considered during Impact Assessment using PII’s Impact Analysis Tools in order to establish its PI status and possibilities.
Significant Impact Area
A significant impact area for an organisation is one where there is a strong relationship between the impact area and the organisation’s current and/ or future business. This is a function of an organisation’s business activities, the sectors it supports and the countries in which it and its clients operate.
Where there is a high level of need vis a vis an impact area in the country/ries of operation of the organisation, and where the core business activities of the organisation and/ or the main sectors it supports are key to this impact area (e.g. the energy sector and climate change, or agriculture and food security), this impact area will be among the most significant impact areas of the bank.
By understanding their most significant impact areas, organisations can take action and set targets where they can deliver the most impact.