True Profits change the logic of business and the economy.
In three fundamental ways
Mindset
True Profits create a paradigm shift in the way we perceive profit and value in business and the economy.
Decision-making
True Profits translate hidden impacts in the language of currency, enabling social and environmental considerations at the core of business.
Incentives
True Profits form the basis for market incentives, ensuring that the most impactful organisations are also the most profitable.
From reporting to rewards
A fiscal system that rewards impact
A fiscal system that rewards impact would integrate externalities into taxation. Building on CSRD transparency, this could include:
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True Profit Tax – adjusting corporate tax rates based on a company’s net positive or negative impact.
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Impact Border Tariffs – expanding CBAM-style mechanisms beyond carbon, covering biodiversity loss, materials use, and pollution.
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Impact Levies – pricing resource extraction, pollution, and ecosystem degradation to encourage innovation and reduce harm.
A financial system that rewards impact
Existing innovations, such as sustainability-linked loans, green mortgages, and sustainability-linked bonds, show what is possible. But scaling them requires aligned incentives from regulators and central banks, including:
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Impact-adjusted interest rates, such as green TLTROs, where banks receive lower rates from the ECB when they increase EU Taxonomy-aligned lending.
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A shared EU language for social impact, enabling social KPIs (fair wages, equality, community impact) to be priced alongside environmental ones.
An accounting system that recognises impact
We need accounting that reflects all forms of capital (natural, social, and human). This means:
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Activating impact (nature, climate, social value) on the balance sheet, as intangible assets that strengthen long-term value creation.
Europe has made major strides in transparency through CSRD and SFDR. But reporting alone cannot change markets. To make impact truly profitable, we must move from reporting to rewards: embedding impact directly into the fiscal, financial, and accounting systems that shape market behaviour.
The True Profit Alliance is a global collaboration of frontrunning enterprises.
Our ambition is to establish a robust business case for transformation together with experts, frontrunner businesses, and policymakers to help shape the fiscal, financial, and accounting rules. Through collaboration, shared insights and joint advocacy, we develop effective market incentives, innovative fiscal frameworks, and sustainable finance stimuli that reward positive impact.
Grounded in the Impact-Weighted Accounts Framework
True Profits are grounded in the Impact-Weighted Accounts Framework, a standardized, science-based approaching for quantifying and valuing impact.
The Impact-Weighted Accounts Framework (IWAF) makes impact information fit for decision-making, easy to understand, and actionable.
IWAF is a standardised, science-based approach for quantifying and valuing impact, trusted and adopted by over 50+ organisations.
Those who lead on True Profits today, define the market of tomorrow.
