Verifik8 impact measurement system
Figure 1: Environmental, Social, and Governance are non-financial factors used by investors to evaluate an company ability to reach sustainability beyond economic gain
The UN Climate Change Conference COP26 taking place in Glasgow gathers governments, industries, and NGOs to translate environmental objectives into concrete actions. But how can we coordinate and evaluate the efforts of key players when they come in all shapes and sizes? The goal of ESG reporting is precisely to set a framework to measure and compare environmental, social, and governance performances. Each organization can implement its impact measurement system to set sustainability targets and track its progress using reliable data. This year, VerifiK8 designed its impact reporting system and is glad to introduce it in this article.
What is an impact measurement system?
An impact measurement system is a set of metrics that evaluates the qualitative and quantitative impact of an organization on its ecosystem including employees, clients, environment, and community in general. It usually encompasses the three main impact areas of ESG (environmental, social and governance) but should be adapted to the specificities of each organization. As an example, the environmental impact of a reforestation NGO will be focused on the quantification of the positive outcomes generated by the organization (number of trees planted, surface of land restored…) whereas the environmental impact of car manufacturer will include an evaluation of the GHG emission of its supply chain, and the mitigation activities implemented (energy savings, increased emission performance of vehicles produced…). Given the diverse declinations of the “impact” notion across the various business sectors and the need to standardize its evaluation, several international frameworks like SDGs, B corp, IRIS+ have been developed. In the end, the common denominator of any impact measurement system is to demonstrate impact effectively by:
Providing a clear impact thesis
Evaluating the impact with quantitative and qualitative metrics
Ensuring a reliable data collection and monitoring
VerifiK8 impact measurement
Sustainability has been at the heart of our mission since the very beginning of VerifiK8. The choice of designing an ESG measurement system comes from the ambition to bring our social and environmental impact to the next level: by quantifying and measuring it, we can monitor our progress, undertake targeted actions, and communicate our results efficiently with internal and external stakeholders. VerifiK8 reporting system articulates our ESG impact around 7 goals (see Figure 2 below).
Figure 2: Each goal encompasses a set of quantitative and qualitative metrics aligned with the international standards IRIS+ and SDGs (see our article VerifiK8's commitment to the UN Sustainable Development Goals).
With more than 70% of female employees and 3 nationalities represented, VerifiK8 is proud of being a women-led company, with a multicultural team and a growing community of partners. The existence of a quality management system, our work of transparency in the food supply chain, and data collection make VerifiK8 a model in terms of reliability and ethics.
A proven social impact
Over the years, our company demonstrated a capacity to tackle social challenges at the farm level. VerifiK8 can rely on its strong data system that gives a 360 view of social risks on the farms (child labor, fair remuneration, discrimination…). The COVID crisis undeniably limited our impact in 2020/2021 as we were not able to conduct field trips and meet farmers in regions outside Thailand. Despite the pandemic limitations, the number of social field trips conducted grew from 1 in 2018 to 4 in 2020 and 7 in 2021 (so far).
A rise in power on environmental topics
Primarily focused on working conditions at the farm level in the food supply chain, VerifiK8 extended its area of expertise in the past years. The Impact Project was the first to include environmental aspects, and the Climate Change Project followed suit in 2021, giving a whole new dimension to our sustainability commitment. Indeed, we developed internal tools to measure GHG emissions in food supply chains and we are developing partnerships to implement environmentally-friendlier practices in the sugarcane cultivation industry.
VerifiK8 impact measurement system reflects our genuine commitment to sustainability, but also denotes our will to maximize our impact through results monitoring and international frameworks alignment. Being a social enterprise, we are proud to witness and share how VerifiK8’s growth goes hand in hand with positive social and environmental impacts.
World Economic Forum, As the world gathers for COP26, here’s how leaders can dispel ESG confusion
Investopedia, Environmental, Social, and Governance (ESG) Criteria