Usage.md

# Usage Guide

## Overview

The IFVI Global Value Factors Dataset V2 provides standardized multipliers designed to convert non-financial environmental and social impacts into monetary terms. This guide explains how to properly use these value factors for financial impact modeling.

## What Are Value Factors?

Value factors are **mathematical multipliers** that enable the conversion between:
- Specified units of impact (e.g., tons of CO2, liters of water)
- Non-financial impacts 
- Monetary terms (USD)

These factors bridge the gap between environmental/social performance data and financial valuation, enabling quantitative assessment of sustainability impacts.

## Currency Standardization

**Important**: The entire dataset is standardized to **US Dollars (USD)**. 

When working with environmental impacts denominated in currencies other than USD:
1. **Currency conversion must be performed first** before applying value factors
2. Convert the base impact data to USD using appropriate exchange rates
3. Then apply the relevant value factor

## Intended Usage for Financial Actors

### Core Principle
Value factors must be **paired with matching raw environmental data** to model financial impacts of companies' non-financial performance.

### Implementation Steps
1. **Identify relevant environmental/social data** from company reporting
2. **Ensure unit alignment** with IFVI specifications
3. **Convert to USD** if data is in other currencies
4. **Apply corresponding value factor** as a multiplier
5. **Calculate monetary impact** (Impact Data × Value Factor = Financial Impact)

### Example Workflow
```
Raw Data: 1,000 tons CO2 emissions
Value Factor: $185 per ton CO2 (example)
Financial Impact: 1,000 × $185 = $185,000 USD
```

## Important Considerations

### Unit Precision
Given the nuances in reporting standards (particularly in GHG emissions), it is **critical** to:
- Pay close attention to units of measurement specified by IFVI
- Ensure exact unit matching between source data and value factors
- Verify measurement methodologies align with IFVI specifications

### Data Quality
- Source data quality directly impacts the reliability of financial impact calculations
- Ensure environmental data follows recognized reporting standards
- Consider data verification and assurance levels

## Applications

Value factors can be used for:
- **ESG financial impact assessment**
- **Sustainability accounting**
- **Risk quantification**
- **Investment decision support**
- **Regulatory compliance reporting**

## Documentation and Support

For comprehensive documentation accompanying the V2 release of the Global Value Factors Database, visit the official IFVI website:

**[ifvi.org](https://ifvi.org)**

The full technical documentation provides detailed methodologies, assumptions, and guidance for advanced use cases.

## Data Structure

This refactored dataset provides value factors in multiple formats:
- **CSV**: For spreadsheet analysis and data processing
- **JSON**: For programmatic access and API integration
- **Combined datasets**: For comprehensive analysis
- **Individual factor files**: For targeted use cases

Refer to the main README.md for detailed information about data structure and file organization.