The document discusses the need for new metrics to measure companies' net impacts and value creation. It argues that current measures are outdated and better at measuring performance than impacts. A new quantification model is proposed to assess both the positive and negative economic, social and environmental impacts of companies. This would provide a more holistic view of companies' overall footprint and shape. It would focus only on the most significant impacts and those downstream from products and services. The goal is to incentivize businesses to build their models around solutions that deliver net positive impacts.

1. Sitra Aamuharppaus 12.6.2018
@annunieminen
Arvonluonnin uusi
aikakausi & yritysten
nettovaikutusten
mittaaminen

2. Miksi rakennamme
uudentyyppistä
kvantifikaatiomallia
yritysten
nettovaikutusten
mittaamiselle?

3. Tapamme
mitata yritysten
arvonluontia on
vanhentunut.

4. Olemme hyviä
mittaamaan
performanssia, mutta
emme vaikutuksia.
share
price
revenue
EBITDA
growth
rate

5. Seuraus? Olemme
hyviä hiomaan sitä,
miten teemme – mutta
emme määrittämään,
mitä pitäisi tehdä.

6. “We attract the best talent, we grow
faster than our peers.”

7. “We attract the best talent, we grow
faster than our peers.”
“We offer superior tools and toys for our
people.”

8. “We attract the best talent, we grow
faster than our peers.”
“We offer superior tools and toys for our
people.”
“We host a vegan barbeque every
Tuesday”.

9. “We attract the best talent, we grow
faster than our peers.”
“We offer superior tools and toys for our
people.”
“We host a vegan barbeque every
Tuesday”.
“Our product development culture is the
most agile in the industry.”

10. “We attract the best talent, we grow
faster than our peers.”
“We offer superior tools and toys for our
people.”
“We host a vegan barbeque every
Tuesday”.
“Our product development culture is the
most agile in the industry.”
“We have the highest customer
satisfaction ratings.”

11. “We attract the best talent, we grow
faster than our peers.”
“We offer superior tools and toys for our
people.”
“We host a vegan barbeque every
Tuesday”.
“Our product development culture is the
most agile in the industry.”
“We have the highest customer
satisfaction ratings.”
“We write the best code”.

12. Sehän on hienoa!
…mutta
tehdäksemme
mitä?

13. Miten
mittarimme
toimivat
tänään?

14. Example:Two Finnish companiesin 2018

15. Example:Two Finnish companiesin 2018
Revenue: MEUR 10
EBITDA: MEUR 1
People employed: 100
Taxes paid to government:
MEUR 0.3
Revenue: MEUR 10
EBITDA: MEUR 1
People employed: 100
Taxes paid to government:
MEUR 0.3

16. Example:Two Finnish companiesin 2018
Revenue: MEUR 10
EBITDA: MEUR 1
People employed: 100
Taxes paid to government:
MEUR 0.3
Product: Plastic fork
Revenue: MEUR 10
EBITDA: MEUR 1
People employed: 100
Taxes paid to government:
MEUR 0.3
Product: Re-education
services to unemployed
factory workers

17. Example:Two Finnish companiesin 2018
Revenue: MEUR 10
EBITDA: MEUR 1
People employed: 100
Taxes paid to government:
MEUR 0.3
Product: Plastic fork
Revenue: MEUR 10
EBITDA: MEUR 1
People employed: 100
Taxes paid to government:
MEUR 0.3
Product: Re-education
services to unemployed
factory workers
In our current measuring system, these two companies impact Finland
exactly the same way. Do they?

18. Mutta onhan
meillä erilaisia
vaikutus-
mittareita?

19. Let’s imagine two companies: A and B.

20. A
Carbon
footprint:
x tons/
year
B
Carbon
footprint:
2x tons /
year
Let’s imagine two companies: A and B.

21. A
Carbon
footprint:
x tons/
year
B
Carbon
footprint:
2x tons /
year
Without knowing what was gained,
this is hardly useful for decision-making.
Let’s imagine two companies: A and B.

22. Mutta
meillähän on jo
CSR, eiköstä?

23. 5 reasons why the current impact
discourse is not enough to fix this
The current CR discourse is… (example) …which leads to:
…stuck at minimizing downsides “We no longer use suppliers on this
black list in our production”
We are not utilizing “maximizing the
upsides”, i.e. the biggest promise of
entrepreneurship

24. The current CR discourse is… (example) …which leads to:
…stuck at minimizing downsides “We no longer use suppliers on this
black list in our production”
We are not utilizing “maximizing the
upsides”, i.e. the biggest promise of
entrepreneurship
…confusing big and small things
in a colourful mess
“We are now using recycled office
paper”
Big things get overshadowed by masses
of information of secondary impacts
5 reasons why the current impact
discourse is not enough to fix this

25. The current CR discourse is… (example) …which leads to:
…stuck at minimizing downsides “We no longer use suppliers on this
black list in our production”
We are not utilizing “maximizing the
upsides”, i.e. the biggest promise of
entrepreneurship
…confusing big and small things
in a colourful mess
“We are now using recycled office
paper”
Big things get overshadowed by masses
of information of secondary impacts
…focused on internal and
upstream impacts
“We installed water-saving toilets
into our offices”
Not understanding impact of actual
product or service
5 reasons why the current impact
discourse is not enough to fix this

26. The current CR discourse is… (example) …which leads to:
…stuck at minimizing downsides “We no longer use suppliers on this
black list in our production”
We are not utilizing “maximizing the
upsides”, i.e. the biggest promise of
entrepreneurship
…confusing big and small things
in a colourful mess
“We are now using recycled office
paper”
Big things get overshadowed by masses
of information of secondary impacts
…focused on internal and
upstream impacts
“We installed water-saving toilets
into our offices”
Not understanding impact of actual
product or service
…hidden in big sustainability
reports and other data readable
only to few experts in the field
“We produced this 400-page
sustainability report”
This information is not driving decision-
making
5 reasons why the current impact
discourse is not enough to fix this

27. The current CR discourse is… (example) …which leads to:
…stuck at minimizing downsides “We no longer use suppliers on this
black list in our production”
We are not utilizing “maximizing the
upsides”, i.e. the biggest promise of
entrepreneurship
…confusing big and small things
in a colourful mess
“We are now using recycled office
paper”
Big things get overshadowed by masses
of information of secondary impacts
…focused on internal and
upstream impacts
“We installed water-saving toilets
into our offices”
Not understanding impact of actual
product or service
…hidden in big sustainability
reports and other data readable
only to few experts in the field
“We produced this 400-page
sustainability report”
This information is not driving decision-
making
…marginalized far from the core
of business
“Mary is our Head of Corporate
Sustainability, she handles these
kinds of impact things”
Majority of “Corporate sustainability” is
often risk management and marketing –
quite far from actually maximizing
positive impact
5 reasons why the current impact
discourse is not enough to fix this

28. Se ongelmasta!
Mitä teemme
asialle?

29. A new type of quantification model to
bring out the shape of a company
ABC
EconomyNegative impacts Positive impacts

30. ABC
EconomyNegative impacts Positive impacts
pluses
AND
minuses
A new type of quantification model to
bring out the shape of a company

31. ABC
EconomyNegative impacts Positive impacts
pluses
AND
minuses
BIG stuff
only
A new type of quantification model to
bring out the shape of a company

32. ABC
EconomyNegative impacts Positive impacts
pluses
AND
minuses
BIG stuff
only
focus on
downstream
A new type of quantification model to
bring out the shape of a company

33. Input 1:
Taxonomy of
all products
and services
Input 2:
Structure of
main
impacts of
companies
Input 3:
Database of
80 million
scientific
articles
M
a
g
i
c
A
I
Input Output
“Automated
summary of
impact of all
products
and
services”
Basic logic of our quantification model

34. How can a machinebe taught to understand
causalitiesin natural language?
impactTerm: cancer
productTerm: tobacco
abstract: this study
investigates …
Encoder /
feature
extractor
Neural
network
Prediction
pi = 0.95
pd = 0.03
pn = 0.02
po = 0.01
0.14
0.02
0.78
.
.
.
0.82
Input vector
Feedforward neural
network with a single
hidden layer100-500
dimensions
correctLabel: I
Training sample
Variety of word-
vector based
encoders
Classifier (“AI”)
7000+ of manually labeled
samples, with 1000 of them
´cross-checked.

35. Exampleoutput: net impact of a (Finnish)fund
Possibility to play around
to optimize in real time
(add/remove)
Understanding de facto impacts of investments
(not just “meta-compliance”)
“Which companies
cause the most
GHG emissions in
this fund?”

36. Bisneksen
säännöt ovat
muuttumassa.

37. “Old business” “New business”
The whole business is built
around a product with a net
positive impact.

38. “Old business” “New business”
First you make money, then
you use some of it for “doing
good”.
The whole business is built
around a product with a net
positive impact.

39. “Old business” “New business”
First you make money, then
you use some of it for “doing
good”.
The whole business is built
around a product with a net
positive impact.

40. “Old business” “New business”
First you make money, then
you use some of it for “doing
good”.
The whole business is built
around a product with a net
positive impact.
The more a company makes money,
the more it continues to solve the problem it is
dedicated to.

41. Kiitos!
www.uprightproject.com