Framework for Industry-Specific Product Impacts
The first installment in our Industry-Specific Methodologies is now available for public comment
Framework for Industry-Specific Product Impacts Public Comment
Introduction
Product impacts can range from the potential negative impacts of products like tobacco to positive impacts of life-saving drugs. While frequently significant in magnitude and essential to a complete understanding of a company’s overall impact, they tend to be a less developed area of sustainability reporting standards. Given the unique nature of product impacts and potential variability across industries, for consistent and comparable application it is necessary to have a common framework to underpin industry-specific methodologies.
The Framework for Industry-Specific Product Impacts (Product Framework) is being released for public comment to address this need. It is the first Industry-Specific Methodology produced by IFVI in partnership with the Value Balancing Alliance (VBA) and focuses on measuring and valuing impacts that result from the use of products. The Product Framework is a critical piece of methodological infrastructure that enables impact accounting to provide a comprehensive assessment of the societal value created and/or eroded by a company.
The Product Framework builds on General Methodology 1: Conceptual Framework for Impact Accounting and General Methodology 2: Impact Measurement and Valuation Techniques by laying out concepts, definitions, and methodological considerations specific to product-related impacts and applicable across all industries. The Product Framework will inform future development of Industry-Specific Methodologies while also providing guidance to companies and investors on how to develop impact pathways for products in the absence of official Industry-Specific Methodologies.
Register for the Public Comment Webinar
On March 18 at 2 p.m. CET / 9 a.m. ET, IFVI and VBA will host a webinar to introduce the exposure draft for the Framework for Industry-Specific Product Impacts (Product Framework).
Highlights
- Develops concepts and definitions that are used to define outcomes and describe impacts connected to products, including terms such as end-user, final product, intermediate product, and use phase. This includes reaffirming impacts as a change in well-being, and may be actual or potential, intended or unintended, and positive or negative.
- Applies each step of the three-step process for measuring and valuing impacts based on the logic of impact pathways developed in the General Methodology to product impacts. Product impacts are generally understood as occurring during the use phase of final products, with entities that do not sell final products tracing their impact through the inputs they sell in the value chain contributing to a final impact.
- Answers key questions related to the scope of product impacts, addressing what is and is not a product impact. The statement establishes that all products, including both goods and services, are in scope, that all aspects of product use are in scope, and that absolute impact is measured by default.
- Emphasizes an evidence-based approach to reduce the risk of misrepresenting product impacts, and in particular avoid the overstatement of product impact claims. An evidence-based approach requires evidence to corroborate both the significance of an impact and the causal relationship with an entity’s activities and products.
How to submit comments
You can submit feedback via the Product Framework Survey or e-mail at research@ifvi.org with the title of the methodology in the subject line.
Influences
The development of this methodology builds on frameworks and protocols published by leading organizations in the impact management ecosystem, research and standards of international organizations, and sustainability-related disclosures required by governing jurisdictions and international standard setters, including:
- Capitals Coalition
- European Sustainability Reporting Standards
- Greenhouse Gas Protocol
- Impact Economy Foundation
- Impact Management Platform
- Impact-Weighted Accounts Project at Harvard Business School
- ISO Standards
- OECD Framework for Measuring Well-being
- Social Value International
- Value Balancing Alliance
Development process
The development of Framework for Industry-Specific Product Impacts is governed by the Valuation Technical & Practitioner Committee (VTPC) and follows the Due Process Protocol.
- Development of the Product Framework was approved by the VTPC as part of its 2024 work plan.
- Preliminary research and development began in June 2024. VTPC discussion meetings were held in June, September, and October 2024.
- The VTPC approved the exposure draft of the Product Framework in November 2024.
- Public comment period was launched on February 25, 2025.
Register for the Virtual Feedback Session
Prefer to share your feedback on the Product Framework in person? On April 8 at 3 p.m. CET / 9 a.m. ET , IFVI and VBA will host a virtual feedback session to allow attendees to share their feedback on the Product Framework.
