At Argos, we work collaboratively to deliver solutions to global challenges and strive to create value for our stakeholders. As part of our strategic management and to monitor our progress towards our purpose “to build dreams that foster development and change lives,” we measure our environmental, social and economic impacts on society.
We recognize that we depend on the transformation of natural resources and that environmental responsibility is key for our business continuity. Applying impact valuation allows us to unify and understand our natural capital impacts and dependencies, and connects our environmental responsibility between local and global contexts.
Using KPMG’s True Value methodology, we developed our Value Added Statement. This tool allows us to assess and manage our operation’s main externalities and provides insights on how we deliver value to society. It helps us achieve three objectives:
1. Inform and improve our business decision-making;
2. Manage our risks more accurately;
3. Enhance transparency with our stakeholders.
In 2016, we calculated a net value added to society of USD $ 929.3 million, 3.43 times its retained benefit and 10% increase from 2015. Operational environmental effects accounted for a net cost to society of USD $287.5 million in 2016, 2% lower than in 2015. This relates to significant annual decreases in societal costs from GHG emissions, water consumption and impacts on biodiversity.
We found that impacts derived from GHG emissions represent the highest societal cost, accounting for 78% in 2015. By using alternative materials and fuels as a strategy for climate change mitigation, we could prevent up to 11% of societal costs related to GHG emissions in 2015 and 2016.
The overall decrease in societal costs is a result of implementing strategies and policies, such as our Environmental Policy, our BEST strategy (Building Efficiency and Sustainability for Tomorrow) and our climate change strategy. These guidelines focus on developing cleaner, more efficient processes without affecting our production capacity in the long-term.
Argos Integrated Report 2016: http://reporteintegrado.argos.co/our-purpose/value-added-statement/?lang=en
VAS Report 2015-2016: http://reporteintegrado.argos.co/pdf/vas.pdf
Cristina Arias (firstname.lastname@example.org) Sustainability Director