Net Present Sustainable Value: A Value-Based Approach to Sustainable Investment Appraisal
Liesen, A., Figge, F., & Hahn, T. (2013). Net Present Sustainable Value: A New Approach to Sustainable Investment Appraisal, Strategic Change. Strategic Change, 22, 175–189. DOI 10.1002/jsc.1931.
31 Pages Posted: 13 Jun 2013 Last revised: 10 Jan 2014
Date Written: June 11, 2013
The concept of ‘net present sustainable value’ is introduced as a new strategic tool for sustainable investment appraisal, which extends the traditional net present value approach to include resources other than capital. The proposed approach examines if the present value of the future returns which can be anticipated from using environmental and social resources are in line with a company’s strategic targets. The application of the new tool is described in detail and illustrated through various practical examples.
JEL Classification: G31, M14, L21
Suggested Citation: Suggested Citation