Impact Management with the Impact Valuation Model (IVM)

In response to the need for businesses to prioritize social and environmental impacts alongside financial gains, the Rotterdam School of Management (RSM) and the Impact Institute developed the Integrated Value Model (IVM) based on the Impact-Weighted Accounts Framework (IWAF). This model enables companies to forecast the impact of innovations and business models across social, environmental, and financial dimensions. 

The study by RSM and the Impact Institute focuses on sectors with high externalities, revealing that these sectors, on average, create more harm than good from an integrated perspective. Utilizing the IVM incentivizes decision-makers, particularly CFOs, to transition faster towards sustainability by recognizing long-term benefits and managing short-term financial burdens. 

Benefits of adopting the IVM include faster transitions to sustainability, support for long-term viability, and effective risk management. Integrating social and environmental impacts into decision-making equips companies to identify opportunities and enhance overall resilience. 

In conclusion, integrating social, environmental, and financial aspects in decision-making through the IVM is crucial for navigating environmental and societal transitions, ensuring long-term viability, and enhancing company valuation. Dive into the RSM and Impact Institute use case to witness firsthand how implementing the IVM framework can drive positive outcomes for your organization.