FV Tool

FV Tool

Description

The FV Tool is a financial tool that allows an organization to test whether its sustainability initiatives will effectively create or protect value for a project and as well as manage risks that could negatively impact project completion and ongoing business operations. The primary intention of the tool is to evaluate the financial returns of sustainability investments.

How It Works

The process to apply the FV tool includes risk assessment, stakeholder mapping, project quality analysis, estimation of risk mitigation potential, calculation of cost and benefits, and forecast of NPV.

Tool Outcome

Evaluation of financial returns on sustainability investments.

Sustainability Criteria

  • General Project Information
  • Cash Flows
  • Risk Assessment
  • Stakeholder Mapping & Risk Mitigation
  • Sustainability Investment Analysis,
  • Sustainability Project Quality
  • Costs & Benefits
  • Calculate & Evaluate Results.

Additional Information

  • Users of the tool- Investors, General Audience
  • Phase when the tool applies Finance, Prioritization
  • Geographic application- Used by several companies in the extractive industries