Are You Utilizing the New Value Equation for Sustainability from Gartner?

Here’s what you need to know. . .

Sustainability and ESG investments can be challenging to assess with traditional ROI or net-present-value calculations. As such, executives need a new enterprise value equation that accounts for stakeholder priorities, nonfinancial returns, and other factors. 

The Gartner Enterprise Value Equation is designed to do just that - help prioritize investments based on stakeholder objectives, value enablers, stakeholder outcomes, and realized return. With this new equation in hand, executives should leverage data in the following areas: materiality assessment of stakeholders' priorities; alignment with strategic ambition for sustainability; communication of the value received by stakeholders; and analysis of long-term realized returns to the enterprise.

Here at Critical Risk Solution, we understand the importance of taking sustainability and ESG investments into consideration when making decisions about long-term investments. With traditional ROI or net-present-value calculations, it can be difficult to accurately assess the impact of these investments. That is why Critical Risk Solution offers the Gartner Enterprise Value Equation (GEV) as a tool to help executives prioritize their investments based on stakeholder objectives, value enablers, and realizable returns. 

We also understand that the materiality assessment of stakeholders' priorities is key when making decisions about investing in sustainability and ESG projects. Our team has extensive experience helping clients assess materiality for stakeholders, ensuring that all investment strategies are aligned with their strategic ambitions for sustainability. We also have a deep understanding of how to communicate the value received by stakeholders from these investments – both at the moment of commitment and over time as returns start to come through. It’s not just about short-term gains; with our services, clients get an accurate picture of how their long-term realized returns will look too.

To learn more, reach out to us today to schedule your consultation. Our team will be happy to answer your questions and help you remove risk from the equation and make the best decisions moving forward.