ICMM Guidance > Community Development Toolkit > Tool 10 – Financial Valuation

Tool 10 – Financial Valuation

The financial valuation tool helps corporate social responsibility (CSR) and community relations’ professionals to plan, design, monitor and evaluate the quality and effectiveness of a company’s social, economic and environmental investments. It can be used at the monitoring and evaluation stage of a project and also during the planning stage.

Step Guide

STEP
1

Download and complete the self-assessment questionnaire. (p111) The questionnaire consists of two sections to assess the quality and effectiveness of sustainability investments. It is important that users choose the answers that best describes their company’s position and have evidence to support these answers

STEP
2

Answer up to question 10. (p110) This section assesses the general management practices of the program at the specific site

STEP
3

Answer questions 11-21. (p110) This series of questions assesses each initiative/investment individually. To increase objectivity, different grades of CSR staff should apply sections of the self-assessment questionnaire

STEP
4

Calculate the average score. (p115) The Excel-based self-assessment questionnaire is available at: http://fvtool.com

STEP
5

Final result. (p115) This is a numerical score ranging from 1 (ineffective) to 4 (excellent). Enter the score into the Quality of Sustainability Investments tab in the FV Tool or use the score as a stand-alone rating of sustainability investment

STEP
6

Compare the score (p115) generated for the specific sustainability initiative with the full Benchmark Matrix (https://www.fvtool.com/using-the-fv-tool/)

Further Reading:

Guidance on stakeholder engagement, grievance mechanisms, monitoring and evaluating (p116)

Community, Economics, Environment, Ethical Business, Management, Rehabilitation

Financial Valuation (FV) Tool for sustainability investments

There is a growing body of work for quantifying the impact of sustainability programs and taking a more strategic view of community investment decisions. Quantifying the value of these investments and planning accordingly, however, has long posed a challenge for companies and community development practitioners.