| # 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. | |