How we measure value
Our approach to measuring value is captured in Total Contribution, an innovative way of calculating the value of our contribution beyond, and including, financial return.
Our 2022 vision is to be a progressive commercial business creating significant value beyond financial return and to make a positive impact through our Total Contribution to the UK. Total Contribution is the approach we use to measure and communicate our impact economically, environmentally and socially.
Why are we doing this?
For two reasons:
i) to be clear on whether we are making a positive impact year on year, and
ii) to influence our own decision-making. For example, where it is obvious that we have a significant negative impact we can explore actions we can take to reduce that impact. Conversely, evidence of our actions resulting in a positive impact justifies the investment and can provide the business case for more investment.
Total Contribution is a reflection of how we do business, highlighting where we add (and diminish) value.
What do we report?
We report on the impact of our activity, across our six resources and relationships (aka ‘capitals’), and in line with our principles of transparency.
Our activity is split in the following way:
- direct activity (carried out by ourselves),
- indirect activity (commissioned by us but carried out by our supply chain), and
- enabled activity (carried out by our customers on our land).
For detail on how our approach has evolved since the publication of our first report and methodology in 2013, visit Our Journey.
We intend to produce our second Total Contribution report later this year and publish our full methodology for full transparency and comment.
We fully acknowledge that this continues to be work in progress and are open to suggestions. Although our methodology has to be bespoke and material to our business we aspire to collaboration in order to develop something that can also be used by others to enable consistency and comparability.