Tag Archives: Intangible assets

Intangible assets, sustainability and value creation

May 27, 2011   CSR  

intangible-assets-sustainability

image: renjith krishnan

Our view, which is shared with most analysts, is that for the majority of firms today intangible assets account for around 80% of value. This is in marked contrast to the situation as little as 30 years ago when the figure was 30%.

The key intangible asset classes are: human capital, relationship capital and brand capital.

  • ˜Human capital is the value driven by the accumulated skills, knowledge and experience of company employees
  • ˜Relationship capital is the value tied up in positive relationships with employees, suppliers, partners and customers
  • ˜Brand capital is the value realised through consistent visual and verbal communications, and idiosyncratic behaviours

Collectively these asset classes drive the lion’s share of corporate value.

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