A research programme by the Access to Medicine Foundation
Best practice

Leading approach to measuring impact

Company:

Novartis AG

What:

Novartis has been exploring and developing an approach to assess impact. 

Region:

Global

Aim:

The company aims at measuring impact on society in financial, environmental and social (FES) terms.

Context:

'Social impact valuation' can be used to gauge the impact a business’s activities make on human capital, the impact of its products on society, or the impact of its initiatives to strengthen healthcare systems and improve access to medicines.

Since 2016, Novartis has been exploring and developing an approach that allows it to quantify, measure and value the impacts its activities (and related initiatives) make on society in financial, environmental and social (FES) terms. The approach also enables Novartis to assess the impacts of its social activities on communities.

What is the value of measuring impact?
'Social impact valuation' can be used to gauge the impact a business’s activities make on human capital, the impact of its products on society, or the impact of its initiatives to strengthen healthcare systems and improve access to medicines. Impact measurement offers Novartis the possibility of tailoring its access initiatives and its work to strengthen healthcare systems. In doing so, this approach represents good practice.

Novartis has developed, tested and applied its FES methodology since 2016. As impact valuation is still a nascent field, Novartis is working to incentivise external partners and stakeholders to encourage them to engage in this area by sharing their findings and promoting dialogue. 

What makes this a best practice?
Novartis demonstrates best practice in access governance and in stakeholder engagement. This will not only bring benefits to the company, for example enabling it to tailor cost-effective operations; it will also help facilitate access to medicine in the places where Novartis operates. The company states its commitment to developing this approach and improving the way access issues are governed.


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