Key findings
The report shows that the 20 companies analysed generate substantial positive value for society, but also significant unpriced costs. Their total annual positive contributions amount to approximately €427 billion. These benefits include customer value, employee well-being and financial returns to investors.
At the same time:
- Climate-related costs alone absorb 60% of companies’ reported profits
- When social and environmental costs are fully accounted for, combined profits of €209 billion turn into a net societal loss of €19 billion
- For every euro of revenue generated, companies create €0.16 in social and environmental costs that are not reflected in profits
These findings underline a deeper structural problem: Europe’s current economic model still depends heavily on business models that shift costs to society, while disadvantaging companies that invest in future-proof alternatives. The report makes a broader case for redefining competitiveness itself. Long-term competitiveness will come from building markets in which the most impactful businesses are also the most competitive.
About the True Profits Assessment
The True Profits Assessment was developed by the Impact Economy Foundation in collaboration with Singapore Management University and Impact Institute. It analyses the 20 largest European companies by market capitalisation and calculates each company’s True Profit: financial earnings adjusted for quantified social and environmental costs and benefits.
The methodology builds on the Impact Weighted Accounts Framework (IWAF) and covers impacts including climate, air quality, biodiversity, material use, employee well-being and consumer value.
