An economic impact assessment is a preliminary or retrospective analysis of the economic impacts of a company, programme, project or sector on the national and/or regional/local economy, based on complex, primarily quantitative research and analysis methods.

In accordance with the objectives of the engagement and the nature of the client’s activities, the analysis may cover the following areas among others:

  • Key economic performance indicators (e.g. gross value added, number of jobs, tax payments, exports);
  • Indirect economic impacts (supplier value chain, local companies, economic multipliers at regional and/or national level);
  • Direct and indirect employment effects;
  • Indirect impacts on small and medium-sized enterprises.

The analysis results can be used to:

  • communicate with external stakeholders;
  • demonstrate the (indirect) economic weight of the company to corporate decision-makers or legislators and regulators;
  • supplement CSR or ESG reports, providing stakeholders with additional insight into the value created by the client.

The True Value methodology developed by KPMG provides a stable framework for understanding the impact a company has on society and the economy, and how it can create greater economic and social value. The methodology has been successfully applied in a number of sectors and countries, such as the Netherlands and Sweden.

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