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Direct Economic Value Generated (G4-EC1-a) Methodology

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In 2018, the GRI G4 Sustainability Reporting Guidelines were superseded by the GRI Sustainability Reporting Standards (GRI standards). This is the methodology for G4-EC1-a which has been superseded by GRI 201-1 - the current GRI 201-1 metric can be found here.

About

This metric is based on the Global Reporting Initiative (GRI) G4 Guidelines. It covers one of the reporting requirements of Indicator G4-EC1 – ‘Direct economic value generated and distributed’.

Information on the creation and distribution of economic value provides a basic indication of how the organization has created wealth for stakeholders. Several components of the economic value generated and distributed (EVG&D) also provide an economic profile of the organization, which may be useful for normalizing other performance figures. If presented in country-level detail, EVG&D can provide a useful picture of the direct monetary value added to local economies.

Methodology

  • Find or calculate the direct economic value (or revenue) that the company generates - G4-EC1-a1:

    Revenue includes the following:

  • Net sales equal gross sales from products and services minus returns, discounts, and allowances
  • Revenue from financial investments includes cash received as interest on financial loans, as dividends from shareholdings, as royalties, and as direct income generated from assets (such as property rental)
  • Revenues from sale of assets include physical assets (such as property, infrastructure, and equipment) and intangibles (such as intellectual property rights, designs, and brand names)

For WikiRate Researchers:

  • Monetary conversions - monetary values must be converted to US Dollars. If the value is reported in a currency other than US dollars, please consult this page to find the conversion rate to use according to the company's reporting year. Once you have found the correct conversion rate, multiply that number by your answer to get the USD rate. Include this calculation in your comments.
  • Please see this page for additional guidelines on how to research values for GRI-based metrics.