Planning and Financial Valuation Tool for Sustainability Investments

CIM Montreal 2011
Abstract Abstract submitted by :
Thibaut Millet, Deloitte
tmillet@deloitte.ca
(514) 393 5532

The Challenge:
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.

The Solution:
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.

Keywords: Sustainability, Community relations, Corporate Responsibility, Environment
Full Access to Technical Paper
PDF version for $20.00
Other papers from CIM Montreal 2011