Risk assessment and opportunity identification
A basis for policy decisions
New Country and Sector Benchmarks Offer Guidance for Effective Policy and Business Strategies
WifOR Institute and the Value Balancing Alliance have published benchmarks that identify the most significant social and environmental impacts across global industries. These insights enable policymakers to enhance regulatory frameworks and help businesses integrate sustainability into their strategic decision-making.
The reports cover:
- Country Benchmarks, based on the NACE classification, for 18 industries across 20 national economies.
- Sector Benchmarks, classified according to SICS®, spanning 11 sectors worldwide.
Enabling Effective Policy and Business Decisions
The benchmark reports transform official data into actionable insights, enabling businesses to assess their competitive position beyond financial performance – beyond financial metrics alone. Key benefits include:
- Uncovering opportunities – where sustainability drives long-term competitive advantage
- Benchmarking sustainability performance – against industry-specific standards
- Communicating strengths with credibility – to investors, stakeholders, and the public
- Identifying and managing risks – including supply chain challenges and regulatory exposure
However, the data highlights systemic challenge – such as carbon-intensive raw materials or sector-wide supply chain issues – that require collective action and political solutions. The benchmarks help pinpoint where such interventions can have the greatest impact.
Prof. Dennis A. Ostwald, CEO of WifOR Institute, emphasizes the significance of the benchmarks:
Prof. Dennis A. Ostwald
CEO of WifOR Institute
Targeted sustainability measures require a clear understanding of where action is most needed. By providing comparable impact metrics, these benchmarks allow governments to strengthen policy frameworks and businesses to integrate sustainability into strategic decision-making.
Christian Heller, CEO of the Value Balancing Alliance, highlights:
Christian Heller
CEO Value Balancing Alliance
These benchmarks are groundbreaking in driving sustainable value creation and transforming business models, industries, and economies. For the first time, companies and their stakeholders can easily assess if they are outperforming their sector and identify the material impacts within an industry.
Example: How the Benchmarks Work in Practice
The benchmarks are expressed as Impact Intensities, representing the average social and environmental footprint of industries in different countries relative to their revenue. Using WifOR Institute’s Value Factors, these impacts are translated into actionable insights.
Example: Consumer Goods Sector in Australia
- The majority of these emissions occur within the supply chain, not in direct operations
- That means: For every €1,000 in revenue, the sector generates an average environmental cost of €49 due to GHG emissions
- The Impact Intensity for greenhouse gas (GHG) emissions is -€0.049 per €1 in revenue
For businesses, performing below the sector average presents a clear opportunity to communicate sustainability leadership. Those above the benchmark gain valuable direction for targeted improvements.
Policymakers, in turn, can take focused action – for instance, by applying sustainability criteria in public procurement, enhancing supply chain transparency, or collaborating with supplier countries to support lower-emission production practices.
A Framework for Sustainable Economic Growth
With these new benchmarks, WifOR and the VBA provide a robust tool for embedding sustainability into strategic decision-making:
• Governments can enhance framework conditions that help businesses foster sustainable development, while reducing negative impacts.
• Businesses can integrate sustainability into decision-making, improving risk management, and identifying emerging opportunities.
• Investors and stakeholders gain greater transparency, leading to more informed decision-making and stronger accountability.
