Position Green launches financial calculator for climate-related investments

Position Green has launched a new, publicly-available calculator that models the financial upside of climate investments, in areas such as return on investment (ROI), net present value (NPV), payback period, carbon tax savings, and emissions impact.

The new tool was developed in collaboration with Rickard Sandberg, associate professor of econometrics and head of the Center for Data Analytics at the Stockholm School of Economics.

‘Performance lever’

“Sustainability is not a trade-off,” Sandberg commented. “It is a performance lever and a risk management tool, fully aligned with fiduciary duty and long-term value creation.”

The calculator enables sustainability professionals to track the financial implications and outcomes from climate initiatives, modelling real business scenarios and enabling users to test cost and savings drivers, quantify financial and carbon impact, and support internal decision-making processes, including budget approval discussions and strategic planning.

‘ESG value creation is real,’ Position Green said on its website. ‘It’s time to make it tangible. The ROI calculator helps you prove the financial case for decarbonization. Position Green’s software helps you deliver it at scale. Move beyond compliance and use sustainability data to cut costs, mitigate risks, and long-term business performance.’

Financial modelling

The launch comes at a time when many CSOs are under pressure to demonstrate the financial rationale behind climate-related strategies, with regulatory requirements, carbon pricing mechanisms and investor scrutiny, not to mention increased board pressure, contributing to demand for clearer financial modelling.

As Rob Doepel, managing partner of EY Sustainability, told the Economist Impact Sustainability Week Summit earlier this week, “To get executive teams to think longer term, they need more evidence. They need more data. They need more quantified business cases and quantified plans.”

Position Green added that the calculator forms part of a broader suite of software and advisory services specialising in sustainability data management and reporting. Read more here.