Ethical Performance
inside intelligence for responsible business


A financial planning tool that ‘predicts CSR value’

October 2011

The private arm of the World Bank has launched the Financial Valuation Tool, a resource for predicting returns on future CSR investments.

The International Finance Organization programme, which simulates cash flow, project risks and detailed financial data, allows companies to construct a portfolio that can be assessed for the quality of its ethical investment.

Available as a download from the IFC, the simulator calculates the net value of investments based on a combination of seven variables.

These are: stakeholder analysis, traditional investment analysis, value protection, cost benefit analysis, risk quantification, investment quality and a random probability tool, to predict future events and produce value calculations.

The methodology also takes into account project-, industry- and country-specific risks, and allows companies to calculate value on a ‘base case’ (basic compliance with national regulation) and with augmentations, going beyond regulatory requirements.

The IFC says the tool ‘communicates the corporate value of CSR in the language of the financial world’.

World Bank | Global | SRI

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