The SKAN Factor is a proprietary metric for determining the future value of a company's sustainability initiatives. Formulated by a team of sustainability strategists from The SKAN Project, the rating system analyzes risks and opportunities from a sustainability platform, including an assessment of established or proposed environmental, social and cultural programs.
For instance, extensive consideration is given (but not limited) to:
Facilities
Energy efficiencies, renewable energy, indoor and outdoor air and environmental quality, local regs that may affect operations and future improvements, water and waste management, LEED and super-efficient building and interior design, etc.;
Operations, Processes and Administrative
Supply chain initiatives, recapture and re-purposing systems, stakeholder engagement, internal alignment, transportation, etc.;
Social and Cultural
Labor, community integration, social programs for employees, customers, outside stakeholders, NGO engagement, health and safety, etc.;
Fiscal
Has the company optimized its sustainability initiatives (environment, social and cultural components) towards the increase in value and profitability;
Marketing
Has the company genuinely marketed its initiatives...or is it simply Greenwashing, what is the impact on brand equity and consumer loyalty;
Innovation
Has the company explored and employed innovative design strategies in product design and production and operations;
The "SKAN Factor" is a valuable tool in assessing a company's value to investors, VC firms, lenders and consumers who seek more clarity of choice in their purchasing decision. As the "green dust" settles, with corporations and consumers alike growing weary of the green frenzy (known as Green Fatigue), demand has grown for clarity, education and conscious assessment as the tools for measuring a company's commitment to sustainability and the value that may result from that commitment.
Companies that are rated by The SKAN Factor are continually monitored for changes in sustainability initiatives as well potential environmental and social risks that may affect a company's financial condition. The SKAN Factor is a concise and convenient method of analyzing a company's value in terms of sustainability as an overlay to the assessment of stock, sales, earnings, industry and other market trends.
APPLICATIONS
Posted Ratings
We will randomly rate companies and post the results here. Our selection is based upon nothing more than curiosity and the belief that the assessments will be of interest to the visitors of our site.
Self-Assessment
We offer an objective, internal assessment for companies that choose to test their own sustainability initiatives, identify opportunities to become more sustainable or identify risks of not being sustainable. Higher ratings will add value to a company's messaging through internal alignment, marketing and PR. These ratings may be commissioned as private or public. Private ratings remain locked in the vault. Public ratings are posted to our site 12 months following the rating.
M&A
The most accurate valuation of a company will necessarily include an assessment of the risks and opportunities stemming from how it conducts itself environmentally and socially. Companies that only focus on the bottom line have already experienced rude awakenings. Returns on investments in sustainable practices are now a reality and must be measured against not only the product or service provided, but how that product or service is manufactured or undertaken. To fully understand the value of a company that will be the target of a merger or acquisition, the value of its sustainability, or lack thereof, must be analyzed -- for the risks of not doing so can be significant.
Private Equity Start-Ups
Starting a new company without assessing the exposure from lack of environmental or social preparedness can doom a company from the start. Worse yet, environmental and social initiatives that are put in place only in an attempt to mask the true impact a company has in its operations (a form of Greenwashing) will certainly lead to disastrous results. Assessing these risks and opportunities from the outset, well before securing land, facilities or suppliers, will result not only in a higher probability of success but will also increase the marketability for capital and reduce costs.
SSRI
Socially Responsible Investing has seen billions of dollars invested over the past 5-10 years. Fund managers establish a set of socially responsible guidelines, such as no firearms, no tobacco, no alcohol, no war weapons, etc. However, Socially Responsible investing can no longer be managed on the end product. Rather, how that product is made is of equal or more importance in the present landscape, which demands attention to processes and operations like nothing else in business history. The SKAN Factor provides managers with a new and potentially more important level of assessment, adding new value to their funds and building portfolios around the most responsible -- and financially successful companies on Earth.
Sample Company Summaries and Ratings
Sara Lee Co, as of June 27, 2008
Lifeway Foods, Inc., as of July 10, 2008
Steelcase, Inc., as of July 24, 2008
Rush University Medical Center, September 8, 2008
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