Business has the potential to be an immense force for good.
Driving solutions to the world’s most urgent challenges, from climate change to social inequality.
Yet today, we face a Profit Paradox:
Companies can achieve financial success, while externalizing costs onto people and the planet.
%
of the profits of listed companies would disappear if their environmental and social costs were accounted for.
Why now?
We can!
The increased availability of impact data thanks to initiatives like the CSRD, combined with declining costs of gathering and analysing such data (AI, blockchain) give organisations the opportunity to manage their impacts more effectively in an almost real-time fashion.
We must!
A growing number of companies are transitioning towards more sustainable business models and impact-driven enterprises grow steeply in size. These organisations are, however, faced with traditional economic incentives and metrics which do not favour transitions. As a result, the range of sustainability actions that companies can take are restricted by the rules of cost-competitiveness. Transparency on True Profits and market incentives for impact, craft a business case for transition.
We benefit!
As externalities become increasingly financially material, and risks (physical, financial, legal, reputational) grow, it becomes urgent and beneficial for both society and businesses to create a new competitive playing field where businesses are not in competition for the lowest price, but the highest True Profit. This is, for example, demonstrated by the growing adoption of internal carbon pricing. True Profits offer a proactive way to manage these risks by internalising environmental and social costs, before regulation or crisis forces them to.
As externalities become increasingly financially material, and risks (physical, financial, legal, reputational) grow, it becomes urgent and beneficial for both society and businesses to create a new competitive playing field where businesses are not in competition for the lowest price, but the highest True Profit.
The opportunity of our age
In today’s changing economic and regulatory landscape, businesses face growing pressure to align financial success with social and environmental responsibility. While European markets battle with rapidly changing global economic and trade relations, True Profits provides a forward-thinking opportunity that helps businesses combine impact and competitiveness.