Pure Profit: The Financial Implications of Environmental Performance

The World Resources Institute has published this method of assessing a company’s prospective financial exposure to environmental risks that could give investors an edge when making investment decisions. “Pure Profit: The Financial Implications of Environmental Performance”, by WRI economists Robert Repetto and Duncan Austin, aims to overcome a key obstacle to integrating environment issues into credit and investment analysis: translating environmental impacts into financial ones. The method developed by WRI uses scenarios regarding environmental developments. Consistent with established financial valuation techniques, it allows investors to translate environmental issues into the financial terms that they need to make sound investment choices.