Direct economic value generated and distributed

  • ​Report the direct economic value generated and distributed (EVG&D) on an accruals basis including the basic components for the organization’s global operations as listed below. If data is presented on a cash basis, report the justification for this decision and report the basic components as listed below:

    • Direct economic value generated:
      • Revenues
    • Economic value distributed:
      • Operating costs
      • Employee wages and benefits
      • Payments to providers of capital
      • Payments to government (by country – see Guidance below)
      • Community investments
    • Economic value retained (calculated as ‘Direct economic value generated’ less ‘Economic value distributed’)
  • To better assess local economic impacts, report EVG&D separately at country, regional, or market levels, where significant. Report the criteria used for defining significance.

Information on the creation and distribution of economic value provides a basic indication of how the organization has created wealth for stakeholders. Several components of the economic value generated and distributed (EVG&D) also provide an economic profile of the organization, which may be useful for normalizing other performance figures. If presented in country-level detail, EVG&D can provide a useful picture of the direct monetary value added to local economies.

Compile the EVG&D data, where possible, from data in the organization’s audited financial or profit and loss (P&L) statement, or its internally audited management accounts.


  • Net sales equal gross sales from products and services minus returns, discounts, and allowances
  • Revenue from financial investments includes cash received as interest on financial loans, as dividends from shareholdings, as royalties, and as direct income generated from assets (such as property rental)
  • Revenues from sale of assets include physical assets (such as property, infrastructure, and equipment) and intangibles (such as intellectual property rights, designs, and brand names)

Operating costs

  • Cash payments made outside the organization for materials, product components, facilities, and services purchased. This includes property rental, license fees, facilitation payments (since these have a clear commercial objective), royalties, payments for contract workers, employee training costs (where outside trainers are used), or employee protective clothing

Employee wages and benefits

  • Total payroll comprises employee salaries, including amounts paid to government institutions (such as employee taxes, levies, and unemployment funds) on behalf of employees. Non-employees working in an operational role are normally not included here, but rather under operating costs as a service purchased
  • Total benefits include regular contributions (such as to pensions, insurance, company vehicles, and private health), as well as other employee support such as housing, interest-free loans, public transport assistance, educational grants, and redundancy payments. They do not include training, costs of protective equipment, or other cost items directly related to the employee’s job function

Payments to providers of capital

  • Dividends to all shareholders
  • Interest payments made to providers of loans. This includes interest on all forms of debt and borrowings (not only long-term debt) and also arrears of dividends due to preferred shareholders

Payments to government

  • All organization taxes (such as corporate, income, property) and related penalties paid at the international, national, and local levels. This figure does not include deferred taxes because they may not be paid. For organizations operating in more than one country, report taxes paid by country. Report the definition of segmentation used

Community investments

  • Voluntary donations and investment of funds in the broader community where the target beneficiaries are external to the organization. These include contributions to charities, NGOs and research institutes (unrelated to the organization’s commercial R&D), funds to support community infrastructure (such as recreational facilities) and direct costs of social programs (including arts and educational events). The amount included accounts for actual expenditures in the reporting period, not commitments
  • For infrastructure investments, the calculation of the total investment is meant to include costs of goods and labor, in addition to capital costs. For support of ongoing facilities or programs (such as an organization funding the daily operations of a public facility), the reported investment includes operating costs
  • This excludes legal and commercial activities or where the purpose of the investment is exclusively commercial. Donations to political parties are included but are also addressed separately in more detail in G4-SO6
  • Any infrastructure investment that is driven primarily by core business needs (such as building a road to a mine or factory) or to facilitate the business operations of the organization is not included. The calculation of investment may include infrastructure built outside the main business activities of the organization, such as a school or hospital for employees and their families


Potential sources of information include the organization’s finance, treasury, or accounting departments.

  • International Accounting Standards Board (IASB), IAS 12 Income Taxes, 2001.
  • International Accounting Standards Board (IASB), IAS 18 Revenues, 2001.
  • International Accounting Standards Board (IASB), IAS 19 Employee Benefits, 2001.
  • International Accounting Standards Board (IASB), IFRS 8 Operating Segments, 2006.