RSM & Impact Institute: Study on the IWAF-inspired Integrated Value Model

Source: A tool kit for Transition: How the Integrated Value Model enriches corporate decision-making and promotes sustainable business

In our current landscape, intricate social challenges urge us to reimagine business practices beyond mere profit-seeking. Enter the Integrated Value Model (IVM), a product of collaboration between the Rotterdam School of Management (RSM) and the Impact Institute. Grounded in the Impact-Weighted Accounts Framework (IWAF), the IVM advocates for considering societal, environmental, and human well-being alongside financial metrics. This approach elucidates how businesses can effect positive change and gain a competitive edge through a holistic impact-driven strategy.

Main Findings and Benefits of using IVM

Supports Long-Term Viability (LTV)

Financial focus alone risks long-term viability. Integrating “impact” boosts company valuation, with intangibles driving 90% of S&P 500 value in 2020. IVM broadens ‘value’ interpretation, embedding societal and ecological impacts in decision-making, crucial for high-risk sectors.

Manage Value at Risks

Sustainability regulations are evolving, but capital for sector transitions is lacking. IVM enhances understanding of impacts and exposure to intangible assets and risks, aiding in seizing business opportunities and optimizing the business model.

Faster and Easier Transition to Sustainable Business Models

IVM enables quicker shifts to sustainable models, recognizing earlier break-even points and long-term value from sustainability. IVM encourages strategic adoption of sustainable practices, highlighting non-financial factors’ role in business transformations.

The RSM and Impact Institute study reveals how IWAF, through IVM, can revolutionize decision-making by integrating social, environmental, and financial factors. It highlights IWAF’s role in enabling companies to not only adjust but also prosper during ecological and social shifts. IVM stands out as a key tool directing firms to sustainable and robust choices, essential for comprehensive value evaluation. More than just for reporting, the research shows IWAF’s effectiveness in steering on impact, ensuring long-term viability and enhancing company valuation.

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