Embankment Project for Inclusive Capitalism
The Embankment Project for Inclusive Capitalism (the “Embankment Project”) represents an important opportunity to transform the way businesses measure and report on the value they create for stakeholders. After three years of meeting at the Conferences on Inclusive Capitalism in London and NYC, it has become clear that there will not be progress toward Inclusive Capitalism unless there is real change in the workings of the capital markets. A new reporting mechanism is required for corporations to better measure and communicate the value they create for shareholders through their strategic attention to the broad base of their stakeholders: customers, employees, communities, government, and the environment.
In furthering their commitment towards Inclusive Capitalism, EY has developed a proof-of-concept framework that will be tested and further developed by some of the world’s largest asset owners, asset managers, and asset creators (corporations). The proposed framework would become a tool for asset owners and asset managers but also other stakeholders to understand, measure and compare the investments made by asset creators in their purpose, brand, intellectual property, products, employees, environment and communities.
Engagement of all parties across the investment value chain is essential to test and assess this new framework that enables companies to deliver trusted information to material stakeholders to improve the allocation of capital for the long term. We are bringing together over 20 global companies to embark on an 18-month journey to jointly develop, test and validate the EY developed long term value framework. With the representation of more than $20 trillion of assets under management, coupled with EY’s commitment to allocate leading professionals who are dedicated to pioneering a change to the way corporate value is measured and reported, we believe that together we can act as the catalyst for meaningful change.
The collaborative project will also be supported by input from an Advisory Board of leading academics, regulators, international standard setters and other strategic advisors. If proven to be valuable by the participants in the Embankment Project, the model would be open sourced to achieve wide-spread adoption of the inclusive practices that can strengthen trust in business and create long term value for shareholders, and it would be a vital step toward renewing the social contract of business with society.
Inclusive Capitalism can help organizations to restore trust in today’s society and build a sustainable future.
Read the blog post by Lady Lynn Forester de Rothschild, Founder and CEO of the Coalition for Inclusive Capitalism and Mark Weinberger, Global Chairman and CEO of EY.