All of our research is grounded in the Getting to Net Positive Framework

 

Valuing Social Factors 

The project valuations process that is used to value extractive assets is an example of a system that has a significant impact on social outcomes.

 

The Valuing Social Factors project looked at how companies, lenders and communities are considering social factors when valuing mining assets.

 

Systematically integrating social factors into project valuations will have two outcomes:

 

  1. Programs to manage social factors will be properly resourced and implemented; and

  2. Investment decisions will be based on a rigorous understanding of how social factors can influence an asset's valuation. 

 

This, in turn, will increase the likelihood that local communities will see sustained positive outcomes from extractive development.

 

Through this project we interviewed various stakeholders that work with project valuations to understand the current practice and share ideas for improvement. This included valuations experts, ESG experts and social performance practitioners, equity investors, project lenders, and community leaders responsible for negotiating and managing financial benefits.

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If you are interested in learning more please do get in touch.