The Impact-Weighted Accounts Model

The total impact of a company is calculated in three dimensions: environment, employment and product. Harvard has developed a framework that uses financial disclosures and public data to translate a company's impact into dollars. It's called Impact Weighed Accounts (more info here). It's still under development, but we thought it was better to get the ball rolling than wait until it's perfect. We’re learning to crawl before we walk. Here's how it works:

Environment

The environmental impact of a company’s operations focuses primarily on its impact on climate change. This analysis is derived from emissions produced directly and indirectly by the company.

Employment

The relationship between a company, its employees, and the broader labor market. This analysis focuses on fair wages, health and well-being, career advancement, opportunity, diversity, and location.

Product

The impact of a company’s product once it is in the hands of a consumer. This analysis focuses on customer reach and usage, environmental impact, and product end-of-life.

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