A New Vision of Value

A New Vision of Value

KPMG International's report explores the growing connection between corporate and societal value creation.

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A company’s externalities (external megaforces) have, historically, had little or no impact on its cash flows or risk profile. For this reason, externalities have been largely excluded from the measurement of corporate value.

But as economic, social and environmental megaforces transform the operating landscape for business, the disconnect between corporate and societal value creation is disappearing. New regulations, growing stakeholder influence and changing market dynamics are driving the internalisation of business externalities at an increasing rate. Externalities are now part of every company’s value creation story.

Business leaders and their investors need to be aware of these new dynamics in order to unlock value creation opportunities and manage risks. They need to identify and quantify externalities, recognise what is driving internalisation and understand the implications for corporate value. They will then be in a stronger position to develop response strategies that protect and create value, both for shareholders and for society.

A New Vision of Value is the follow-up to KPMG International’s 2012 report Expect the Unexpected: Building business value in a changing world.

Readers of A New Vision of Value will learn:

  • how companies can protect and create both corporate and societal value in the age of internalisation using the KPMG True Value methodology
  • how new regulations, growing stakeholder influence and changing market dynamics are driving the internalisation of business externalities at an increasing rate
  • what is needed from investors, business leaders and policy makers in order to achieve closer alignment between the creation of corporate and societal value.

Read more about KPMG True Value services

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Climate Change & Sustainability Services

KPMG works with clients to help identify and understand the sustainability risks and opportunities for businesses.

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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