What is overall performance ?
The overall performance of a company is calculated based on its financial performance and extra-financial performance.
- Financial performance is the ability of a company to create value, assessed notably through its income statement.
- Extra-financial performance corresponds to the impacts—positive and negative—that the company's activity can have in areas such as :
- Environmental: Does the activity contribute to preserving resources? Does it generate a carbon footprint?
- Societal : will this activity, for example, contribute to supporting local employment?
Why did Crédit Mutuel Arkéa decide to measure it ?
Because overall performance allows for the analysis of positive and negative impacts generated by a company, both directly and in its relationships with stakeholders.
However, there is an urgent need—societal and environmental—to drastically reduce negative impacts and equally increase positive impacts. Therefore, being able to select the right impacts to consider, measure, and quantify allows for precise identification of where and how to take action!
In return, financial performance is also improved, ensuring the sustainability of the activities of all economic actors.
Crédit Mutuel Arkéa has developed a unique methodology to convert extra-financial impacts into euros and thus calculate its overall performance.
Crédit Mutuel Arkéa has thus paved the way.
"Beyond managing the group's overall performance, we share our methodology with companies to encourage them to measure their environmental and social impacts."
Jean-Marie Alfonsi,
Director of Finance and Overall Performance at Crédit Mutuel Arkéa
Concretely, how does it work?
Crédit Mutuel Arkéa's methodology consists of three phases :
- Estimate the impact of its activity, especially on its stakeholders*: the number of supported jobs, access to property, greenhouse gas emissions...
- Convert this impact into euros: net salaries, purchasing power gain, or the carbon value...
- Determine its share of responsibility for this impact, based on its financing level, expressed by a proportion.
*Crédit Mutuel Arkéa takes into account 4 stakeholders: members, customers, suppliers, and employees.
This results in the following model :
| Calculation Steps | Step Description | Example | Calculation Formula |
|---|---|---|---|
| Impact Valuation | Quantified expression of the impact | Amount of GHG emissions | Indicator value Unit (varies by indicators) |
| Impact Monetization | Conversion to € of the impact | Tutelary value of GHG emissions | Multiplied by Monetization index € per unit |
| Determination of CM Arkéa Impact | CM Arkéa's share in the value of the company | Equal to 10% (for a loan of 100 k€ to a client with liabilities of 1 m€) | Multiplied by CM Arkéa's share % |
| Result | Equals Monetary value of the impact | ||
And what's the purpose?
Being able to calculate and quantify in euros not only its financial performance but also its extra-financial performance is a major advancement that allows :
- to help the group's teams improve their decision-making : better select and direct financing, improve relations with suppliers and purchasing policies, better define HR actions...
- to guide the group and all its stakeholders towards change and improvement : what are the specific points for improvement and what concrete actions to implement to achieve them ?
- to evaluate long-term progress at all levels and establish a precise improvement trajectory.
This ambitious methodology has already been tested and applied within the scope of the Arkéa Banque Entreprises et Institutionnels subsidiary. The goal is to deploy it across the entire group's activities.
This methodology concretely illustrates the commitment expressed by Crédit Mutuel Arkéa in its Purpose and its strategic plan 'Transitions 2024' to generate financial and extra-financial performance for all its stakeholders, who, in return, will create even more financial and extra-financial value for the group. Like Crédit Mutuel Arkéa's commitment, this methodology also originates from the urgency of the environmental and societal situation (combatting climate change, promoting social equity and inclusion, protecting rare resources and species...) that should drive all economic actors, especially banks that directly impact society and ecosystems, to strengthen their positive impact and reduce their negative impact. Faced with the multitude of existing measurement tools, the disparity of available indicators, or the absence of industry standards, Crédit Mutuel Arkéa wanted to pave the way and propose a methodology adapted to its sector, built objectively and transparently, to contribute to advancing banking and insurance and the economy as a whole more quickly and efficiently.
Discover our global performance declarations in Our publications.
