Value Creation Rating (VCr 2025): The Sustainable Value Creation of Firms

The Value Creation Ratings 2025 (VCr2025) proof-of-concept focuses on The Sustainable Value Creation of Firms and is an exploratory prototype that assesses 1,000 listed firms from the world’s leading stock markets in terms of how their business models create or transfer value. The comprehensive firm-level VCr measurement establishes the proportion of value creation in relation to revenue. A simpler second measurement, the Value Creation Position (VCp), establishes the percentage of value transfers in relation to revenue. The VCr2025 proof-of-concept report is the flagship output of a sister project to the already established Elite Quality Index (EQx2025) that assesses The Sustainable Value Creation of Nations. “Revolutionizing Risk by Weighting Value” drives VCr2025 and represents a uniquely comprehensive approach to double materiality, connecting a firm’s value creation and profit optimization with its impact on stakeholders, including customers, suppliers, capital providers, employees, regulators, nature, and academic and research institutions. In short, the VCr reports operationalize sustainability by matching the revenue of firms against their extractive value transfer-IN and inclusive transfer-OUT amounts. Value transfer-IN is “value appropriated but not created,” while value transfer-OUT is “value created but not appropriated.” A firm’s business model is assessed in the VCr2025 proof-of-concept report by 102 Sustainable Value Creation (SVC) Metrics selected because of its value transfer- IN/OUT rationale.