Our six-step SDG impact measurement method provides structural insight into our contribution to the SDGs. Below we describe the Responsible Business Simulator, the assumptions we make and the indicators we use. We also provide a visual representation to explain how threshold values and appreciation work.
The approach underlying our SDG impact measurement is the Responsible Business Simulator (RBS). This approach and its accompanying tool, developed by PwC in cooperation with Nyenrode Business University, supports strategic decision-making by quantifying financial and non-financial information. This allows us to make informed decisions based on figures instead of gut feelings.
The RBS enables us to convert the results of indicators with different units (€, %, numbers) into one unit of measurement. This is how we arrive at impact scores for each SDG. Read more about the Responsible Business Simulator.
Impact measurement provides insight into performance but has inherent uncertainties. For our SDG impact measurement, for example, we make assumptions about threshold values and also when we convert indicators to a single unit. Data availability is not always optimal either.
For each indicator, we select a threshold value to determine whether there is a positive, neutral or negative impact on the SDGs. Threshold values can be based, for example, on a sector average or a Dutch average. In cases where reference data are not available, we select threshold values based on the targets we have set for ourselves.
To convert indicators into a single unit of measurement, we apply an appreciation function. Each indicator is assigned a value between -100 and 100. For this we make assumptions, such as the form of the appreciation function (linear, parabolic, etc.) and the minimum and maximum value that an indicator can assume.
Impact measurement relies on the availability of data. In certain cases, there are limitations. For example, information on gender and cultural background is recorded on a voluntary basis. We cannot, therefore, guarantee that we are fully measuring the impact in these areas.
Greenhouse gas emissions from non-recyclable waste, in tCO2e/FTE. Visual representation produced by the Responsible Business Simulator.
How do we apply thresholds and appreciation in our SDG impact measurement? This example, with visual representation, deals with greenhouse gas emissions from non-recyclable waste. We measure this in tCO2e/FTE – that is the number of tonnes of greenhouse gas emissions per employee.
In the visual representation, the appreciation is on the vertical axis and tCO2e/FTE on the horizontal axis. The threshold is set at zero, shown as a green dotted line. As we strive for zero emissions, impact is negative if emissions are higher than zero, and there cannot be a positive impact, as negative emissions are not possible in this case. This results in what we call ‘the lower the better’: lower emissions lead to higher appreciation, represented by the red line.
We set the minimum value of greenhouse gas emissions at zero tCO2e/FTE and the maximum value at 2.56 tCO2e/FTE. We base this maximum value on the Dutch average emissions in reference year 2019.
For each SDG in our impact measurement, we determine a number of indicators. The current indicators and their definitions are included in the following overview.
4.1 |
Training equality |
4.2 |
Training hours |
4.3 |
Evaluation score training |
4.4 |
Education through PwC Academy |
4.5 |
Evaluation score PwC Academy training |
4.6 |
Academic education |
4.7 |
Engagements contributing to Education |
5.1 |
Gender pay gap
|
5.2 |
People Engagement Index (PEI) |
5.3 |
Gender diversity
|
5.4 |
Gender diversity in leadership
|
5.5 |
Gender diversity in (job) engagement teams |
7.1 |
Energy efficiency |
7.2 |
Renewable energy use |
7.3 |
Renewable electricity generation |
7.4 |
Renewable electricity use |
8.1 |
Financial results |
8.2 |
Well-being
* favourable score is 4 or 5 |
8.3 |
Digitisation and innovation
|
8.4 |
People involved in CS projects
|
10.1 |
GPS scores I&D
* favourable score is 4 or 5 |
10.2 |
Cultural diversity
|
10.3 |
Cultural pay gap
|
12.1 |
Environmental impact of waste *GHG emissions are not the only environmental impact from waste, but are used as an estimate. Other environmental impact includes land use, water and air pollution and contamination of soil. |
12.2 |
Environmental impact of purchased goods |
13.1 |
GHG emissions
|
13.2 |
Carbon offsetting and removals
|
13.3 |
Environmental spend |
13.4 |
Taking action on environmental impact |
16.1 |
Integrity
|
16.2 |
GPS score Leadership effectiveness (transparency) * favourable score is 4 or 5 |
16.3 |
Reputation |
16.4 |
Stakeholder dialogue on purpose |
17.1 |
Number of social enterprises supported |
17.2 |
Sponsorships by PwC
|
17.3 |
Investing in financial, volunteering and pro bono services |
17.4 |
Thought leadership and partnership to help solving important problems |