The monetization of impact; just another accounting fad or a real opportunity for change? (with Megan Roux)
Welcome to Money for Change, the podcast made by Triodos Bank! In this podcast, we will share insights and challenges related to our core question: how can we accelerate the change to a more balanced and just world?
Each episode, we will dive into a specific topic that is relevant for answering this question. Hans Stegeman, Triodos Bank’s Chief Economist, is a recurring guest in the show.
When assessing the societal value of a business, we should not only consider its net profit but also its so called ‘externalities’. In this sense, externalities can be explained as the unintended side-effects for people and planet created by business activities. However, it can be challenging to quantify these externalities. For example, how can you put a price tag on the eroding biodiversity of a region? One way of doing this is by ‘monetizing’ the environmental and social impact of activities. With monetization we can put a monetary term on the cost or the benefit that a certain activity has on our society. This can be done with negative externalities like air pollution, but also positive externalities like wellbeing and social connectedness can be monetized. In this podcast, we chat with Megan Roux, manager at the Impact Institute, about examples on how we’re currently putting economic values on externalities. Next to this, we also take a bit more critical perspective. While including externalities in our economic calculations is a step forward, it bears the risk of oversimplifying complex issues. For instance, can the negative environmental effects of the fossil fuel industry stay justified as long as they make high enough profit to offset the damage?
Just as any other week, Hans has brought some very interesting news as well. In the beginning of today’s episode, we’ll also discuss current developments regarding climate resolutions, put a bright perspective on the current state of Europe and talk about the public support for climate change policy.
If you have any comments or questions about this episode, feel free to contact us using the form on our webpage: https://www.triodos.com/en/podcasts/money-for-change
Enjoy listening and don’t forget to rate & follow us!
Host: Emma de Leeuw
Fixed guest: Hans Stegeman
Guest: Megan Roux