Discussion Panel—Assessment of Externalities: Monetisation and Social LCA

This paper aims to explore the topic of monetisation of environmental and social aspects. The content is issued from a discussion panel held in Luxembourg during the LCM2017 conference. It first explores historical and methodological aspects. The recommendations are made for companies who intend to monetise their impacts. Three industrial companies presented their contribution on their day to day use of monetisation. The key conclusions are twofold. In one hand, many challenges remain. The implementation is still not always feasible for all issues and an iterative approach is highly recommended. New methods on social LCA show a growing interest on this topic from various parties. ISO standards work is progressing and will support companies and government in their use of monetisation. From the company point of view, monetisation is a bridge between environmental and social assessment, and economic evaluation, while it provides a common unified unit (money). By using a common unit for financial and non-financial aspects, monetization allows the direct comparison of different aspects and therewith a more informed materiality assessment. By looking at impacts, a new perspective on current and future business risks and opportunities is provided. A better understanding of interdependencies enables more informed decision making. The monetary language is a door opener to access new stakeholder groups such as finance and accounting to raise awareness for sustainability.