We are currently preparing the public consultation of this work scheduled to start in April 2022. We are looking forward to all your input on how to improve the Framework then.

Why Impact-Weighted Accounts?

In our current system, financial value is created too often at the expense of society and the environment. We cannot afford to do so. Organizations are moving toward creating sustainable value. Organizations that are falling behind risk losing their license to operate in the (near) future.

Managing sustainable value creation is impossible without measuring it first. However, that is challenging: 

  • How to reliably measure and compare (non-financial) value? 
  • How to engage stakeholders and ensure organisations act? 

Sustainable value can be measured through impacts. Impacts show how activities affect societal welfare and the natural environment. Impacts can reflect different types of value (financial, manufactured, intellectual, human, social, and relationship) and include effects on different stakeholders.

Impact-Weighted Accounts – or IWAs – are a way for organisations quantify their impacts. The uptake of compiling and publishing IWAs is a key step in the transformation of our economy into an impact economy: a sustainable economy that creates value for everyone.

What are Impact-Weighted Accounts?

Impact-Weighted Accounts (or IWAs) supplement traditional financial accounts. They add information on impacts through quantitative and valued accounts. This shows the value creation or reduction to all stakeholders of an organisation: employees, customers, the environment and the broader society. IWAs have a broad view on value. It includes Financial, Manufactured, Intellectual, Natural, Social and Human Capital.  

IWAs have two key accounts: 

  • The Integrated Profit & Loss (IP&L) extends the “normal” P&L. It shows all impacts on stakeholders in one year. 
  • The Integrated Balance Sheet (IBaS) extends the “normal” balance sheet. It shows impact assets and liabilities. 

IWAs help companies steer on purposeful and intentional impact that benefit society, while ensuring their own licence to operate.

Why a framework for Impact-Weighted Accounts?

The Impact-Weighted Accounts Framework aims to fill the gap of a missing international standard that ensures complete and consistent IWAs. IWAF builds on concepts from other (non-)financial reporting standards and identified five common topics of (non-financial) impact assessment.

The IWAF answers these common challenges with ten principles to ensure that IWAs inform impact decisions. IWAF’s topics and principles are shown in the figure. 

Reading Guide IWAF

Reading Guide

The Impact Economy Foundation is proud to present the Impact-Weighted Accounts Framework, supported by the Summary of IWAF, the Introduction to IWAF, and the Conceptual Framework.

We are currently preparing the public consultation of this work starting in April 2022

In this consultation, you can give your feedback on the documents. This last round of feedback is used to create the official version of IWAF at the end of the year. This official version will be used to inform future policy developments and can be used by companies to create impact weighted accounts statement for the year report of 2022 and later.



IWAF is written on behalf of the Impact-Economy Foundation by a.o.experts from Harvard Business School, Singapore Management University, Rotterdam School of Management and Impact Institute.