Milarex consumer impact calculations and sources
Total consumer impact: EUR 587.9m
Our methodology is guided by Harvard Business School’s Impact-Weighted Accounts (“IWA”) methodology for capturing consumer impact. Key to this methodology are “impact pathways,” the logical connection between a business activity and the change in the wellbeing of a client or consumer which is then monetized. Impact pathways are generated for each company’s product and/ or service, with company data used wherever possible and assumptions used to triangulate data and estimate monetary values.
Assumptions driving this year’s Consumer IWAs for Milarex and Pagero are more granular than last year’s pilot. We also acknowledge that there is an inherent trade-off between the accuracy and scalability of impact monetization analysis and have therefore prioritized a moderate scope of impacts and stakeholders. As impact monetization is more widely adopted and quality industry data becomes more widely available, we and other practitioners will continue to refine assumptions to increase accuracy and generate insights for strategic decisions. Appendix 1a and 1b provide a simplified overview of the calculations underpinning the monetization of impacts for Milarex and Pagero.
Underserved impact #1: Food access and malnutrition
Lack of adequate nutrition can lead to malnutrition-related healthcare costs. Monetization captures the additional utility of having access to food in emerging economies.
Sources: Milarex, Global Panel – The Cost of Malnutrition, World Economic Forum, EU Commission, Good Seed Ventures
Effectiveness impact #1: Cardiovascular disease
Consumption of Omega-3 rich seafoods, primarily salmon, can prevent high risk consumers (e.g., hypertension patients) from developing cardiovascular disease. Monetization captures averted healthcare costs of CVD treatment due to prevention of disease onset.
Sources: Milarex, CIA, Centers for Disease Control and Prevention, Norwegian Seafood Council, National Library of Medicine, European Society of Cardiology, World Health Organization
Effectiveness impact #4: Brain function and cognitive decline
Limited research suggests that fatty acids present in seafood can lower a consumer’s lifetime risk of developing Alzheimer’s and other forms of dementia. Monetization captures the averted healthcare costs associated with treatment of dementia annually.
Sources: Milarex, Alzheimer’s Association, Fisher Center for Alzheimer’s Research Foundation, Norwegian Seafood Council, Alzheimer’s Society
Effectiveness impact #5: Mercury over-intake
Pre-natal mercury exposure is associated with IQ loss and in turn loss of lifetime productivity. Monetization captures the diminished per year earning potential of an individual due to lower productivity from exposure.
Sources: Milarex, National Library of Medicine
Effectiveness #2: Breast cancer
Marine Omega-3 fatty acids from dietary sources, primarily salmon, are associated with a reduction in the likelihood of developing breast cancer. Monetization captures the averted healthcare costs of breast cancer treatment for populations at risk of the disease.
Sources: Milarex, National Library of Medicine, Norwegian Seafood Council, American Cancer Society, The World Bank
Effectiveness impact #3: Rheumatoid arthritis
Academic research supports the idea that consumption of Omega-3 rich seafood, primarily salmon, can serve to manage symptoms of rheumatoid arthritis. Monetization captures the averted healthcare costs due to a reduction in symptoms of rheumatoid arthritis for existing patients.
Sources: Milarex, National Library of Medicine, Norwegian Seafood Council, Medical News Today
Health and Safety impact #1: Cost of product recalls
Listeria poisoning can lead to significant health complications which require medical attention. Monetization captures the approximate health costs incurred per consumer seeking treatment for poisoning.
Sources: Milarex, U.S. Department of Agriculture
Basic Need impact #1: Food nutrition and economic productivity
Regardless of geographic context, access (or lack thereof) to food affects the economic productivity of consumers. Monetization captures the approximate productivity gains due to access to fish products.
Sources: Milarex, World Bank, National Library of Medicine
For more information on HBS’ approach to impact monetization, please consult the following sources:
- Impact-Weighted Accounts
- Practitioner Guide to Calculating Product and Service Impact