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

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.