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

See all articles by Andrea Liesen

Andrea Liesen

Institute for Ecological Economy Research (IOEW)

Frank Figge

KEDGE Business School

Tobias Hahn

KEDGE Business School

Date Written: June 11, 2013

Abstract

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

Liesen, Andrea and Figge, Frank and Hahn, Tobias, Net Present Sustainable Value: A Value-Based Approach to Sustainable Investment Appraisal (June 11, 2013). 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.. Available at SSRN: https://ssrn.com/abstract=2277835

Andrea Liesen

Institute for Ecological Economy Research (IOEW) ( email )

Potsdamer Str. 105
Berlin, 10785
Germany

Frank Figge

KEDGE Business School ( email )

Domaine de Luminy
BP 921 13288 Marseille Cedex 9, 13288
France

Tobias Hahn (Contact Author)

KEDGE Business School ( email )

Domaine de Luminy - BP 921
BP 921
Marseille, PACA 13288
France
+33491827313 (Phone)

HOME PAGE: http://www.kedgebs.com

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