New Study Unveils the Social and Ecological Impact of AEX Companies
A groundbreaking study conducted by Rotterdam School of Management (RSM) at Erasmus University, Nyenrode Business University, and strategic agency ftrprf has revealed the financial, social, and ecological impact of the top 25 AEX-listed companies for the first time. The findings indicate that the 23 largest publicly listed firms in the Netherlands collectively impose greater costs on society than they generate in value, with a negative balance of 30 percent.
Key Findings: A Mixed Performance Across Companies
Despite the overall negative impact, two-thirds of the AEX-listed companies contribute positively to society. However, a few major corporations, including ArcelorMittal and Shell, have significantly contributed to the negative balance. Heineken and Unilever also rank low, while Philips leads the index with the highest positive impact.
This research, led by Professor Dirk Schoenmaker (RSM/Erasmus), Professor Willem Schramade (Nyenrode), and econometrician Wander Marijnissen (ftrprf), involved 400 master’s students analysing the companies using a new integrated value calculation method. The study assessed financial, social, and ecological value collectively, offering a more holistic evaluation of corporate impact.
A New Approach to Measuring Business Impact
The study introduces a novel metric—the Futureproofing Ratio—determining whether a company’s overall societal contribution surpasses its financial worth. The methodology relies on financial and sustainability reports, supplemented by additional data sources.
The results have been compiled into the newly launched AEX Futureproof Index Report, providing a standardised framework for assessing corporate sustainability.
Assessing the Real Costs and Benefits of Business Activities
One of the study’s groundbreaking aspects is its ability to translate corporate social and environmental impacts into quantifiable costs and benefits. Researchers assessed multiple impact areas to determine the overall social value of a company. This approach answers critical questions such as: What are the social costs of a glass of beer? What is the financial return of a corporate training programme?
By integrating financial, social, and ecological values, the study establishes a clearer link between social impact and corporate financial value. The Futureproofing Ratio enables businesses and investors to assess how well a company aligns with long-term sustainability.
Ranking AEX Companies: Leaders and Laggards
The researchers ranked 23 AEX-listed companies based on their Futureproofing Ratio (two companies from the AEX top 25 were excluded from the study). Philips tops the index with a ratio of 4.86, meaning its social value is nearly five times its financial value. ArcelorMittal, on the other hand, holds the lowest position with a negative social return of minus 12.01.
Shell and Heineken also rank among the lowest. Encouragingly, 15 of the 23 companies assessed achieved a Futureproofing Ratio above 1, including financial institutions and firms such as AkzoNobel and Unilever. However, while these companies demonstrated positive integral value, their social impact remained below their financial worth.
Implications for Businesses and Investors
Professor Schramade emphasised the importance of understanding the broader implications of business activities. While companies like Philips, Ahold, Randstad, and KPN rank highly due to their focus on health, food, and employment, the negative impact of industrial firms like ArcelorMittal was more severe than expected.
“The health impact of particulate matter and the ecological consequences of CO2 emissions are far more extreme than anticipated,” said Schramade. He also noted that even top-ranking companies have sustainability challenges, such as ASML’s water pollution concerns and Ahold Delhaize’s association with obesity-related issues.
Professor Schoenmaker highlighted Heineken’s surprisingly low position. “Heineken is widely admired, but our findings reveal a serious issue: the high social costs of alcohol. This study allows us to financially quantify such costs.”
A Call to Action for Policymakers
The study’s authors hope that the AEX Futureproof Index will influence business leaders, shareholders, and investors to integrate sustainability into decision-making.
Schramade stated, “If investors have thousands of companies to choose from, they should prioritise those that create the most societal value. We hope this study will encourage businesses to rethink their strategies, including in mergers and acquisitions.”
Schoenmaker added, “This research highlights not only where future opportunities lie but also which business models are becoming obsolete. Our findings should inform industrial policy and economic planning. We urge the Minister of Economic Affairs to utilise this information in shaping a future-proof economy. Companies like Philips represent growth potential, whereas traditional industries such as steel production are no longer sustainable.”
A Transformative Approach to Business Evaluation
By introducing an absolute and monetary valuation of corporate social impact, this research overcomes the limitations of conventional sustainability rankings, which often rely on relative comparisons. The ability to assign concrete financial values to social and environmental costs provides a more meaningful benchmark for investors and policymakers alike.
As the conversation around sustainable business practices evolves, the AEX Futureproof Index sets a new standard for measuring corporate responsibility, urging companies to move beyond financial profitability towards a truly sustainable and future-proof economy.
