CSB Publishes Research on Monetizing the Financial Benefits of Sustainability Actions in Companies
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The second edition of Sustainable Production & Consumption, features NYU Stern Center for Sustainable Business' published research on their novel Return on Sustainability Investment (ROSI). CSB researchers, Tensie Whelan, Tracy Van Holt, Ulrich Atz, and Elyse Douglas provide practitioners and researchers with a five-step methodology that monetizes companies' sustainability actions, creating shared value for stakeholders.
ROSI allows business leaders to estimate and realize the financial benefits of integrating sustainability throughout their diverse supply chains. For example, the Brazilian beef supply chains that committed to deforestation-free beef yielded a potential net present value (NPV) between 0.01 to 12% of annual revenue, depending on the supply chain segment. For one automotive company, the five-year NPV based on realized benefits of sustainability-integration was 12% of annual revenue.
Excerpt: "When a company monetizes its sustainability actions, others can evaluate how they are innovating and investing to minimize risk. People can see, and quantitatively value, robust contingency plans to mitigate future losses, and they can create opportunities for procuring cost-effective insurance coverage."
ROSI allows business leaders to estimate and realize the financial benefits of integrating sustainability throughout their diverse supply chains. For example, the Brazilian beef supply chains that committed to deforestation-free beef yielded a potential net present value (NPV) between 0.01 to 12% of annual revenue, depending on the supply chain segment. For one automotive company, the five-year NPV based on realized benefits of sustainability-integration was 12% of annual revenue.
Excerpt: "When a company monetizes its sustainability actions, others can evaluate how they are innovating and investing to minimize risk. People can see, and quantitatively value, robust contingency plans to mitigate future losses, and they can create opportunities for procuring cost-effective insurance coverage."