Saudi Basic Industries Corp. (SABIC) has joined the Value Balancing Alliance, a global organization that’s developing a methodology to measure the impact of environmental social and governance (ESG) programs, the company said on March 21.
SABIC’s participation in the program will help the company integrate ESG considerations across its business and drive sustainability through collaboration, the company said.
As a core member, the highest membership level, SABIC gains full access to the alliance’s methodology work and voting rights in the organization’s steering committee.
The Value Balancing Alliance methodology builds on existing and tested ESG frameworks, peer-reviewed scientific studies, and established impact and valuation measurements. The alliance’s approach focuses on calculating the monetary value of social and environmental impacts, helping to translate these into the language of businesses, investors and policymakers.
A standardized sustainability management accounting process will help SABIC integrate ESG into decision making at every level of the company, according to a prepared statement from Bob Maughon, executive vice president technology and innovation and chief technology and sustainability officer at SABIC. The company will advocate for excellence in corporate reporting as a representative of the emerging Middle East market, which the company says will broadening the diversity of viewpoints shaping the global methodology.
The alliance includes more than 25 international companies across multiple industries and sectors as members. The companies will pilot the methodology in day-to-day applications to test its feasibility, scalability, comparability and connectivity to existing systems.
