Planning and Financial Valuation Tool for Sustainability Investments
Abstract submitted by :
Thibaut Millet, Deloitte
(514) 393 5532
There is a growing expectation globally that large scale investments by oil, gas and mining industries will bring broad-based benefits to local communities through sustainability investments in areas such as health, education and biodiversity. Quantifying the value of these investments and planning accordingly has long posed a challenge for the extractive industries and community development practitioners, leading to less-than-optimal outcomes and missed opportunities.
Furthermore, the inability to articulate the cost/benefit of sustainability actions has also impeded internal communication of the importance of sustainability and has often meant that sustainability remains outside of the core project planning process.
A multilateral partnership, including Rio Tinto Alcan, IFC CommDev and Deloitte, has successfully developed a Planning and Financial Valuation Tool for Sustainability Investments.
By applying the methodology to defined projects, organizations can now answer two critical questions:
1. “what” should be the Sustainability investments related to this project, and
2. “how much” financial return they will bring.
The approach is customized to the specific realities of a given project, thus positioning the company to not only sustain its social license to operate but ideally maximize its value to the local communities and the larger corporation.
Sustainability, Community relations, Corporate Responsibility, Environment