CSB Director Tensie Whelan and Senior Scholar Elyse Douglas' Harvard Business Review article, "How to Talk to Your CFO about Sustainability," discusses how CSB's Return on Sustainability Investment (ROSI) methodology can help companies examine the true financial costs and value that sustainability strategies generate. In doing so, CFOs can leverage internal financing to scale the initiatives that are proven to increase operational efficiency and drive value for stakeholders.
Companies should use the following five-step process to leverage ROSI:
1) Identify current sustainability strategies
2) Identify related changes in operational or management practices
3) Determine the resulting benefits
4) Quantify the benefits
5) Calculate the monetary value
Tracking sustainability-related financial metrics can empower CFOs to better manage sustainability risks and opportunities, driving value through enhanced innovation, customer loyalty, supplier relations, media coverage, and stakeholder engagement.
Excerpt: "As the links between sustainability and economic performance become clearer, pressure will mount from investors, boards, and executive leaders to track and report the payoffs."
Read the full article here.
CSB Publishes in HBR on How to Talk to Your CFO About Sustainability
Thursday, January 7, 2021