The Impact Economy Foundation (IEF) introduces the Impact-Weighted Accounts Framework (IWAF) as a transformative tool for organisations already on the path to CSRD compliance. This paper explores the parallels between the Corporate Sustainability Reporting Directive (CSRD) and the Impact-Weighted Accounts Framework (IWAF) while highlighting how IWAF surpasses transparency to instigate transformation. It delves into five key differentiated features that distinguish IWAF, illustrating its role as a transformative tool for impact management. Through a meticulous analysis of these features, the paper elucidates how IWAF is not a disruptive framework in the face of current regulations but rather an empowering complement.
Transition From Impact Reporting to Impact Management with IWAF
While CSRD ensures transparency in impact disclosure, it lacks clear directives for impact management and decision-making. IWAF addresses this by guiding organizations to strategically manage and leverage impact data, enhancing decision-making beyond reporting.
IWAF’s Features Complementing CSRD for Impact Management
- IWAF’s monetary valuation, yield impacts comparable, hence facilitating informed decision-making and helping companies prioritise activities for enhanced stakeholder welfare.
- IWAF improves materiality assessments by using a rights-based approach and quantitative valuations for standardized impact integration.
- IWAF’s monetary valuation simplifies stakeholder collaboration and integrates impact into financial systems for integrated value creation.
- IWAF expands impact analysis to encompass the entire value chain, offering a more comprehensive understanding of value creation and enhance accountability.
- IWAF’s IP&L provides a holistic view of organizational value creation across six capitals, improving executive summaries and performance progress tracking.
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Download the short guide providing the highlights of the paper for a clearer understanding of how IWAF operationalizes transparency mandated by CSRD.
