Building Block #14 – Tool

The accompanying TOOL for Building Block#14 highlights vitally important issues for organizations to consider in the Diversity, Equity, and Inclusion goal-setting process. 

The TOOL is a report, Towards Common Metrics and Consistent Reporting of Sustainable Value Creation, which was launched in January 2020 at the Annual Meeting of the World Economic Forum. The report, which was developed by the International Business Council (IBC), a group of 120 CEOs of the world’s largest companies, presents a set of metrics designed to measure “non-financial” environmental, social and governance (ESG) aspects of business performance and risk in creating long-term value. 

These non-financial factors play a vitally important role in “stakeholder capitalism.” Stakeholder capitalism is a system in which corporations do not focus solely on serving the interests of shareholders. Rather they focus on serving the interests of the full range of stakeholders, including customers, suppliers, employees, shareholders, and local communities. 

According to the World Economic Forum, the metrics presented in the report are centered on four pillars:

People

  • Reflects a company’s equity and its treatment of employees. Metrics include diversity reporting, wage gaps, and health and safety.
    Note: The People section described above is the relevant section for DEI goal-setting. This section can be found on pages 31-35 of the report.

Planet

  • Reflects a company’s dependencies and impacts on the natural environment. Metrics in this pillar include greenhouse gas emissions, land protection, and water use.

Prosperity

  • Reflects how a company affects the financial well-being of its community. Metrics include employment and wealth generation, taxes paid and research and development expenses.

Principles of Governance

  • Reflects a company’s purpose, strategy, and accountability. This pillar includes criteria measuring risk and ethical behavior.

To utilize the tool, click here to download the PDF.