The FV Tool allows a user to compare the effectiveness of different sustainability investment portfolios in NPV terms and prioritize investments that bring the most value to local communities and a company’s bottom line.

Features of the FV Tool

The FV Tool brings a level of analytical scrutiny to the valuation of non-technical risks and their impact on a large capital project. The process includes risk assessment, stakeholder mapping, project quality analysis, estimation of risk mitigation potential, calculation of cost and benefits and forecast of NPV.

Using the FV Tool - Calculate Total Value AddedCalculate Total Value Added

The FV Tool uses traditional investment analysis to produce NPV ranges for actual or future sustainability initiatives.

Using the FV Tool - Value CreationValue Creation

Cash value from direct savings or additional revenues for the company generated by social initiatives. Value creation is produced from a direct project cost (CAPEX/OPEX) and benefit calculation. Direct costs could include dedicated staff salaries, infrastructure, training, equipment and/or project management costs. Direct benefits might include salary or recruitment cost savings from local workforce capacity building, a reduction in materials, energy or shipping costs through local supply chain development or productivity gains.

Using the FV Tool - Value ProtectionValue Protection

Cash savings from identifying and mitigating social or environmental risks such as community disputes, regulatory issues, spills, accidents, injuries, labor shortages, access restrictions, lawsuits and protests, all of which can cause costly delays in planning, construction and operations and even lead to project cancellation or asset appropriation.


User Endorsements

  • "We wanted to demonstrate empirically the link between the money we invest in community development and the value addition and mitigation of risks to our core business. We are using the FV Tool to kick-start an evaluation of our projects so that we can make decisions on which are most sustainable for communities and deliver the highest value."

    • Kate Sharum
    • Corporate Social Responsibility Manager,
      New Forest Company.

Supporting Tools

Three additional project tools associated with the main FV Tool are featured on this site. They can be used in conjunction with the FV Tool or on a stand-alone basis. The Risk Mitigation Factors and Quality Benchmark Matrix are both integrated into the FV Tool’s methodology. The Value Drivers Tool is offered as a useful guide to identify project costs and benefits. See below for more details.

Risk Mitigation Factors

This spreadsheet estimates the risk mitigation potential of each sustainability investment through mapping the interdependencies between project stakeholders, issues, risks and sustainability initiatives.

It allows the user to identify the most relevant risks and issues and ascertain the extent to which they are being addressed by a specific sustainability investment.


Quality Benchmark Matrix

The quality matrix is a self-assessment measure that determines the quality of the proposed sustainability investment compared to international good practice in order to determine where risks are minimized and opportunities are maximized by implementing the sustainability initiatives.

The output is a numerical value corresponding to the effectiveness of the proposed investment, allowing the user to identify and address areas requiring improvement. This tool can be used to measure the quality of sustainability initiatives independent of the FV Tool.


Value Drivers Tool

The value drivers tool is a stand-alone process that is not integrated into the FV Tool workflow. However it can be a useful exercise to complete as an input to the cost-benefit analysis stage as users will be guided through a series of steps to help clarify both the direct costs of a sustainability initiative as well as the potential financial and non-financial benefits.


To download the FV Tool please use a PC


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All tools, calculators, and frameworks are supplied as a courtesy only. International Finance Corporation (“IFC”) is not responsible for the accuracy or completeness of information that you provide or information generated by the calculators. Please check your records carefully before inputting your information into the calculators or tools. All projected results are estimates, are examples only, and are necessarily hypothetical in nature. No results are guaranteed. The output of the tools and calculators may vary with each use and over time. The output and results should not be construed as financial, legal or tax advice, and the calculators and tools are not intended to replace the advice of qualified professionals. You should not rely on the calculators and tools as your only source of information. You should consult with a qualified professional of your choice whenever specific advice is necessary or appropriate.

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