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Valuing non-financial performance project - Phase 2

The core non-financial performance areas and the contributing ESG factors are often part of companies’ internal strategic story. But why do they rarely feature in the dialogue between companies and investors? How can companies effectively measure and manage performance in these areas?



The European Laboratory on ‘Valuing non-financial performance’ developed a framework for dialogue between companies and investors. This was based on extensive research and consultation with business, investors and other key stakeholder groups.


The principles behind the framework recognise that there are a small number of core areas of non-financial performance that drive financial performance and are common across companies by size, sector and market. Performance in these core areas is determined to some greater or lesser extent by a wide range of environmental, social and governance factors which are more company or sector specific.


More background information on 'Valuing non-financial performance'.


Phase 2 of the Laboratory focuses on working with individual companies to:

  1. identify the materiality of non-financial performance areas in their business; 
  2. assess how non-financial performance is measured and managed using existing company management approaches;
  3. establish the extent to which companies use common management tools and models – or company specific variations of them - and how these could be adapted to enable more effective measurement and management of non-financial performance;
  4. build a process for corporate responsibility managers to engage with colleagues across their business to develop joint approaches to improve measurement and management of non-financial performance;
  5. propose a short list of KPIs that fit with the Laboratory framework in order to promote common measures of the non financial performance.


The Laboratory team brings together a group of leading companies to:

  1. Agree the scope of the project
  2. Confirm the objectives
  3. Identify required partners
  4. Determine a timeframe
  5. Confirm resource requirements

The Laboratory team and identified partners works with individual companies to:

  1. Agree a timetable for in-company assessment;
  2. Plan development of an improvement process;
  3. Support delivery of the assessment and improvement activity;
  4. Share experience and learning with other participant companies.

The Laboratory team and companies works with partners to:

  1. Review common management tools and approaches;
  2. Adapt or develop new tools where appropriate; 
  3. Promote the project and its outcomes.

Please download the presentation.

Possible outcomes

  • Common core KPIs
  • Development of management tools and approaches
  • Best practice
  • Company case studies 
  • How to guide
  • Policy recommendations




Strategic Management,
ESG Aspects


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