Sustainability Return On Investment (SROI)
Sustainability Through Triple Bottom Line Assessment
Governments have long been the “clean up crew” for environmental and societal impacts of corporate and institutional decisions. Increasingly, however, corporations and institutions are being asked to pay for their environmental and societal impacts.
So how do organizations rigorously quantify their environmental, social and economic impacts, ensuring that the company remains profitable and the community remains viable? And how do you ensure that you are making decisions that optimize sustainability performance without burden shifting?
Through the Sustainability Return on Investment (S-ROI) methodology, EarthShift can help you uncover potential costs hidden by traditional accounting procedures.
S-ROI is designed to examine a decision-making process from the viewpoint of multiple expert stakeholders, while maximizing returns for as many of them as possible.The methodology brings Life Cycle Assessment results together with social and economic impacts to create a unified assessment of the decision.
Our team of sustainability consultants has been practicing S-ROI (formerly known as Total Cost Assessment) since 2001. We will help you identify and engage with key expert stakeholders either in-person or online, recording the Bayesian probability of potential outcomes.
The 3Pillars software simplifies the S-ROI engagement where possible, enabling the traditional workshop brainstorming through a social networking environment. The tool calculates Net Present Value for very complex scenarios so that brainstorming isn’t hindered by calculation capability. Click here to learn more about 3Pillars.
In the end, the S-ROI process offers a picture of the future, including best, most probable and worst-case results. Results are delivered in Net Present Value terms, which are readily understood and accepted by financial experts in your organization. We then help you make sense of the S-ROI output and present it simply to decision-makers within your firm.
A recent EarthShift project for a Japanese government agency illustrates: the agency was considering whether to invest in a gasification plant to convert forest residue into energy. EarthShift engaged the woodcutters, livestock farmers, stakeholders in the community, and government representatives. Through the S-ROI process, not only did the project get approved, but stakeholder input enabled maximum ROI for all of the key stakeholders, ensuring long-term success of the project.
Other projects have included the evaluation of increased HIV/AIDS education, the business case for an improved pollution prevention device, whether or not to invest in a new product, and assessment of sustainability goals.
The next time you have a tough decision to make, or a project feasibility study to conduct, let EarthShift help you account for the full costs and benefits ahead of time, so that you get the most out of your efforts and chart your course with a triple bottom line in mind. Click here to learn more about starting an S-ROI engagement with your company.