Evaluation and Measurement

To support our corporate social responsibility governance and strategy services we developed Sustainability Value Index (SVI), a tool to measure the effectiveness of an organization’s sustainability portfolio. SVI translates data on the use of natural resources and investments in employee welfare and social responsibility into a financial index. An organization can use the financial index to gauge the performance of its sustainability portfolio in terms of the return it provides to the organization and society, as follows:

• High return: The sustainability portfolio is aligned with the business activities and is providing benefits to the organization and society.
• Moderate return: Some fine tuning is needed to better align the sustainability portfolio with the business to yield greater benefits to the organization and society.
• Variable return: The sustainability portfolio requires greater alignment with the organization’s risk profile and internal policies to deliver benefits to the organization and society.
• Low return: The sustainability portfolio is not well defined or implemented and therefore is not delivering business or societal benefits.

In turn, the index either verifies the appropriateness of the sustainability portfolio or points to the need for change to enhance the return on investment.