[PDF] Community Development Toolkit - CommDev

Financial Valuation Tool10Sustainability Program Quality FrameworkDescriptionSustainability investments can createbenefits to the local communities as well ascreate significant business value forcompanies. However, the amount of moneyinvested in these programs does notnecessarily correlate with the results acompany is aiming to achieve. Sometimessustainability investments are not plannedand designed based on input from affectedcommunities and other relevantstakeholders. Instead of creating socialcapital and improving corporate communityrelations, these community investmentprograms may contribute to decreasing trustand intensifying tensions with affectedcommunities. For that reason, the qualityand effectiveness of community investmentsare important factors in the company’sstrategy to achieve and monitor itssustainability goals and to make a positiveimpact on local development. It is clear thatthe quality of a sustainability investmentdetermines whether risks and opportunitiesare maximized or minimized. Accurateassessment of the quality and effectivenessof programs is critical for pinpointing therange of value generated by environmental,social and governance (ESG) investmentsand enables companies to effectively planwhat programs they should invest in.PurposeTo enable corporate social responsibility(CSR) and community relations’professionals plan, design, monitor andevaluate the quality and effectiveness ofa company’s social, economic andenvironmental investments.When to use this toolThough this tool can be used at themonitoring and evaluation stage of a projectfor managers to periodically assess theeffectiveness of each investment in asustainability portfolio, it is also useful atthe planning stage, enabling companies todirect investment effectively.PLANNING TOOLSIn order to reduce the subjectivity of ratingthe effectiveness of sustainabilityinvestments, the Sustainability ProgramQuality Framework (Quality Framework)was developed by the IFC and Deloitte, withsupport from ICMM, to assess the qualityof a company’s portfolio of sustainabilityinvestments.Community Development Toolkit109