The Environmental Profit & Loss (EP&L) account developed by the luxury group Kering is an open-source business management tool that supports companies in making an in-depth analysis of their environmental impacts. The EP&L aims to translate these impacts into a business-recognized measure – monetary value – so allowing for comparison across multiple businesses and business units. The tool is designed to help develop strategies, targets, and initiatives to mitigate against environmental costs. The EP&L methodology covers all tiers in the supply chain, from own operations and retail stores, through assembly and manufacturing, to processing and production of raw materials. Information is collated onsite and from suppliers, and each tier is assessed across six impact areas: greenhouse gas (GHG) emissions, water use, generation of waste, water pollution, air pollution and land use. If primary data is not available, secondary data is used and adapted to the specific context. Following the analysis, environmental impacts are assigned economic values that can be translated and understood in terms of Kering’s financial activities. The evaluation methodologies were developed in collaboration with PwC UK.(1)
ENVIRONMENTAL PROFIT & LOSS (EP&L)
