Financial Valuation of Social and Environmental Impact

Traditionally, firms, investors and intermediaries rely on financial data to make optimal capital allocation. However, such consideration is no longer adequate in the midst of rising climate challenges and social issues. Monetizing social and environmental impact has become a necessary step for efficient capital allocation and flow in the more advanced and sustainable finance sector. As businesses go through sustainable transformations, corporate executives are expected to provide the financial valuation of the social and environmental impacts of different components of their businesses in order to facilitate optimal resource allocation.