As the level of integrated reporting improves, so does the reliability and coverage of non-financial data. At the same time companies are discovering how this data can be used in a more versatile way. To give some direction, there are three different approaches that can be singled out:
Novozymes' Acre Study is an excellent example of how leveraging non-financial data works: using biosolutions on the same piece of land could dramatically increase the productivity of the land, resulting in more feed/food and energy and less CO2. The study combines detailed life cycle assessments (LCAs) from the scientific literature as well as LCA studies that have not been published but have undergone critical review in accordance with the ISO standards for LCA.
Based upon a one-acre corn field, which, using conventional farming methods, produces 153 bushels of corn to enable the production of 900 chickens, the impact would be the following:
Based upon their LCA data, Novozymes’ researchers continued to calculate the potential of biosolutions for US agriculture. By adding biosolutions to farmed corn fields in the US, the study shows that in addition to the 9 billion chickens already produced in the US, the same land could also produce 10 billion US gallons of bioethanol, save 120 million pounds of pure phosphorous and avoid over 87 million metric tons of CO2 equivalents.
To increase the value capture from LCAs, together with PRé Sustainability, Finch & Beak has developed the “Opportunity Checker”. Combining two well-established and proven ways of determining material impact of sustainability issues, a materiality assessment and a LCA hotspot analysis, opportunities for value capture are uncovered.
By combining both in a smart way, an organization can pinpoint what’s most relevant and where the biggest difference can be made. By scoring issues and impacts on both scales a matrix is created illustrating the biggest opportunities for innovation.
Are you interested in capturing more value from your non financial data. Feel free to contact Finch & Beak for more information on the Opportunity Checker and our no cure-no pay solutions. Reach out to Jan van der Kaaij, Managing Partner, at email@example.com or call +31 6 28 02 18 80.
This article is largely based on The Acre Study that was conducted by Novozymes. The full case can be found in the attached download. Novozymes aims to improve how food and beverages are produced and bring better products to consumers. Other sectors within the food and beverages industry that Novozymes focuses on include beer, wine and dairy.