The financial considerations

Financial levers remain central:

revenue growth, cost reduction, cost of capital, asset values, and tax exposure

Intangibles amplify outcomes: e.g., −

Innovation and IP enable pricing premium
Human capital boosts productivity and talent retention, lowering costs

Integrating financial and intangible drivers demonstrates measurable returns and strategic advantage

Spotlight on the P&L

P&L line item	Positive Impact	Negative Impact
Revenue	Price premium and volume growth	Failure to achieve price and volume improvement
Cost of goods sold	Lower energy and water costs, waste reduction	Higher sustainable input costs

Gross Profit
Wages	Higher retention and lower recruitment costs	Fair wage commitments
Marketing	N/A	Increased spend on brand building
Legal costs	Lower risk of environmental litigation	Higher legal and reputational costs, lower risk of environmental claims defense
Other Opex	Lower insurance premiums (and freight costs)	Certifications and ESG data assurance costs

Operating Profit
Interest income	Additional returns (e.g., credits, offsets, certificates)	N/A
Interest expense	Greenium/lower cost of capital	Potential penalties if KPIs missed

Earnings before tax
Tax expense	Additional government incentives	Fewer tax offsets
Net Profit	Higher P/E multiple	No sector valuation premium

Spotlight on the P&L