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4.4 - Coggle Diagram
4.4
Natural Capital Feasibility Study
The study concerns with a public-private partnership method of financing the project
A Waste-to-Energy (WtE) heating facility project is proposed
The project aims to use waste incineration to fuel the heating facility to reduce reliance on coal fueled power plants
Social discount rate was used to assess the investment viability
Financial and Economic Analysis conducted
Assessing Sustainability of an Investment
NPSV
(Net Present Sustainable Value) or (Economic Net Present Value)
Includes Social and Environmental aspects
(Corporate Social Responsibility CSR)
Helps managers to recognize benefits from environmental and social resources to decide the viability of a project
Shows how the net present return is achieved using environmental, social, and financial resources
Boost the firms sustainability strategy execution
By allocating social and environmental resources in addition to the economic part
What is Social and Environmental Capital
Human Capital i.e. Knowledge and skills
Man Made Capital i.e. Produced Goods
Natural Capital i.e. Natural Resources
Social Capital i.e. Relationships between individuals and institutions
To calculate NPSV we have to consider:
Discount Rate of time value of money
Required Min. Rate of Return
(Hurdle Rate)
Rate of Sustainable Return (RSR)
The point where the NPV return of an investment exceeds the opportunity costs, which is the required min. return