Friday, April 7, 2017

Finance And Sustainability

Although many think that sustainability and finance don't mix, sustainability is a major component of any corporation. For example, the availability and cost of a major component used in a project can dramatically affect the length and costs of that project. Pressed by investors, CFOs are now starting to discuss sustainability openly. One of the difficulties of such discussions is that a primary role for the CFO is to quantify the financial aspects of sustainability. For example, what are the costs of a natural resource used in production in 10 years? Such inputs are an obvious target for scenario and sensitivity analysis.