IE 1.8. Revenue

The concept of revenue is a cornerstone in ESG reporting, as it directly reflects the economic performance of the company without indirect taxes.

1. How to answer this question ?

To answer this question, the company must calculate its annual revenue by adding all the income generated from the sale of goods and the provision of services during the fiscal year. Any discounts granted to customers should be subtracted, and VAT or other indirect taxes should not be included in this calculation.

2. Why is it important ?

Revenue is indicative of the economic activity and size of the company. In the ESG context, it allows for contextualizing environmental and social efforts and performance relative to the size and activity of the company. It is a critical indicator for investors seeking to assess the sustainability and economic responsibility of a company.

3. Examples :

- Example A: A company sells goods totaling 1 million euros and grants 50,000 euros in discounts over the year. Its revenue would, therefore, be 950,000 euros excluding VAT.

- Example B: A service company generates revenue of 500,000 euros. After deducting 10,000 euros in discounts, the revenue to be declared is 490,000 euros excluding indirect taxes.

These examples illustrate how to calculate revenue for ESG reporting according to the guidelines of France Invest.