VALUE & RISK

for organizations, Investments & projects

Understand societal impacts affect your financials – and what you can do about it

Impacts can create and preserve value or erode it. We help you analyze both backward-looking financial results and forward-looking opportunity/risk scenarios, so you can design your strategy accordingly.

⚠️ Here we focus strictly on the financial effects on your organization or investments. We do not apply monetized impacts on society, nor do we assume externalities are automatically internalized (e.g., simply applying the “social cost of carbon” as a cost line in your accounts).

Sustainability/impacts can make a positive contribution to value, reduce risks, but also lead to new costs and risks.

Explore value & risk through impacts

The PI Value & Risk Framework

Explore the world’s first comprehensive and integrated IRO framework, allowing you to quantify actual financial effects, risks, opportunities, and measures ROI driven by Impacts

Actual financial effects 

Quantifying sustainability effects on your P&L statement and balance sheet through both value creation and value protection

Identify and assess risks, and the ROI of mitigation measures

Identify, evaluate, and quantify financial risks driven by impacts and the return on investment of mitigation measures (value protection)

Identify and assess opportunities

Identifying innovation and growth potentials through sustainability (value creation)

Financial materiality

Apply a cutting-edge approach to assessing the financial materiality of sustainability topics in a manner that aligns with the maturity of your processes (delivers best results in conjunction with our impact materiality assessment)

The PI Value & Risk Framework

From Impacts to P&L: turning risks and opportunities into value and actionable insights

The PI Value & Risk Framework links societal impacts with financial effects. It helps you understand:

  • how impacts have already affected your financial results

  • where future opportunities and risks lie
  • and which measures deliver real ROI

Explore the framework in three steps:

The PI Value & Risk Framework supports you in accounting for the actual financial effects through impacts/sustainability.
The PI Value & Risk Framework supports you in accounting for the actual financial effects through impacts/sustainability.
The PI Value & Risk Framework supports you in evaluating the risks, opportunities and the direct & indirect value contributions through impacts/sustainability.

Slide 1: Past & Materialized Effects

Every plan is affected by opportunities and risks. Our framework helps make these deviations transparent — showing how they roll up into the net financial effect.

Slide 2: Quantification Example

Financial effects are measurable. By tracking gains, losses, and savings across revenues, costs, and profits, we turn impacts into concrete financial outcomes that matter for decision-makers.

Slide 3: Risk, Opportunity & Measure ROI

Our framework shows whether and how measures contribute to value. It helps assess potential risk reductions and growth effects — making the ROI of impact actions visible and comparable.

This enables organizations to move from reactive reporting to proactive financial planning. Whether it’s stranded assets due to environmental risks or income gains from sustainable innovation, we will allow you to quantify what matters.

actual financial effects

Sustainability is no longer abstract – it’s on your P&L and balance sheet

Our PI Financial Effects Database maps hundreds of sustainability topics to 18 financial effect types derived from four financial triggers (value chain stakeholder decisions, standard setter decisions, public perception, and system-based triggers). The financial effect types include changes in operating expenses, asset valuation, depreciation, cost of capital, and revenue streams.

Example financial effects sustainability

Climate Change as a financial risk: Case Study Year 0
Climate Change as a financial risk: Case Study Year 1
Climate Change as a financial risk: What happened in-between: Revenue: a key customer requested a product carbon footprint, and the company couldn’t provide this. The company loses the project (-10), but gains additional revenue with other customers (+5) COGS: decreased proportional to revenue decrease Capital costs: capital providers price in the carbon risk as the company fails to report and manage their GHG footprint (-4), however, others provide a cheaper refinancing (+1) Profit: the carbon impact on profits are -14 plus the other effects (+6) result in a net loss of -4

By analyzing the cause-and-effect chain between impacts and financial effects, we help organizations understand:

  • Which sustainability topics already affect financial performance and where they can be found in your P&L and balance sheet
  • How future impacts may influence cost structures, asset values, revenue or profits
  • The sustainability strategy that best fits your impacts, risks & opportunity (IRO) profile – ranging from compliance-driven, pragmatic, strategic to sustainability driven

This enables organizations to move from reactive reporting to proactive financial planning. Whether it’s stranded assets due to environmental risks or income gains from sustainable innovation, we will allow you to quantify what matters.

Risks & ROI of risk mitigation: value protection

Know your risks, understand your actions

Sustainability risks are increasingly material, and independent boards, investors, and even regulators expect organizations to manage them.

PI’s approach to an integrated ESG risk assessment
PI’s approach to an integrated ESG risk assessment – risks by dimension

Our innovative approach helps you to:

  • Identify and quantify, e.g., legal, liability, strategic, transition, and reputational risks
  • Evaluate the financial return on mitigation strategies, such as transitioning to different suppliers due to shortages of products and materials in the supply chain
  • Understand the gross risks (cost) of inaction and missed strategic opportunities

We go beyond qualitative risk registers. Our tools link sustainability topics to financial metrics, enabling you to justify investments in mitigation with clear ROI projections, while providing a feasible approach to handle hundreds of risks.

Our assessments are all CSRD and IFRS-compliant and go beyond that, providing actionable insights, not just reporting

Identify and assess opportunities: value creation

Sustainability can be a productivity and growth engine

While managing sustainability risks is essential, sustainability also presents opportunities for innovation, efficiency, and market leadership.

Impacts value creation assessment (1/6): impact actions overview
Impacts value creation assessment (2/6): adding positive impacts
impacts value creation assessment (3/6): Adding +/- indirect effects
impacts value creation assessment (4/6):  net indirect effects
impacts value creation assessment (5/6): corrected NPV & ranking
impacts value creation assessment (6/6): higher positive impacts

We help you identify:

  • Cost savings through resource efficiency and operational improvements
  • Revenue opportunities from sustainable products and services
  • Strategic advantages in branding, talent attraction, and stakeholder trust

Our approach to identifying and assessing opportunities is grounded in our deep understanding of the financial opportunities associated with sustainability impacts. We show how sustainability can drive bottom-line resilience and top-line growth.

Sustainability opportunities are not just a potential: they’re measurable. We help you connect sustainability actions to financial upside.

Continuous monitoring of value protection and creation

From one-off assessments to ongoing intelligence

Sustainability is dynamic. What’s material today may shift tomorrow. Our approaches support continuous monitoring of:

PI’s approach to an integrated ESG risk assessment: Assessment of the ROI of existing measures
PI’s approach to an integrated ESG risk assessment: Assessment of the marginal benefits of additional measures
  • The financial relevance of sustainability actions over time
  • Changes in stakeholder expectations and regulatory requirements
  • Emerging risks and opportunities across your value chains
  • Monitoring of your absolute and marginal value added and, if relevant, your absolute and marginal impacts

This enables organizations to remain agile, align their strategies, and maintain compliance. Our monitoring tools integrate with your existing systems to provide real-time insights and trend analysis.

Think of it as a sustainability radar: always on, always relevant.

financial materiality approach

Financial Materiality made measurable

Financial Materiality assessments are the basis of any (sustainability) strategy and governance. We connect quantitative approaches for Impact Materiality, with our expertise on how these can already be or become financially material with feasible stakeholder and expert input on your side to assess how sustainability topics affect your financial performance.

The aggregated view of PI’s Materiality Matrix presents the outcomes of a detailed materiality assessment in up to three dimensions.
The assessment of financial materiality typically also contains the change in relevance over time, also referred to as dynamic materiality.

Our methodology includes:

  • Scoring on a scale that you choose, where we help you translate the risk appetite of your CFO to the cut-off for financial materiality
  • Integration of stakeholder perception and expert input
  • Tailored approach that best fits the maturity of your financial materiality processes
  • Alignment with statutory, CSRD’s double and IFRS’s single materiality requirements

This ensures that your Financial Materiality assessment is not just compliant to both your statutory and (if relevant) sustainability reporting requirements, but also meaningful. It helps you prioritize actions, allocate resources, and communicate with confidence.

Under CSRD, not only missing out material impacts, but also the reporting on non-material topics is non-compliant. We help you get it right – what to focus on – and go beyond.

Our Sustainability Taxonomies

The PI Taxonomy is our proprietary system that we derived from over 800 “unique” sustainability topics, derived from 200+ sustainability reports and 36 frameworks. To date, it consists of four dimensions (environmental, social, governance, holistic), 14 topics, 72 subtopics, and 109 sub-subtopics. It enables:

  • Systematic identification of material topics across all dimensions
  • Mapping of each topic to financial risks and opportunities
  • Prevention of duplication and oversight in topic selection
  • Compliance with both CSRD and IFRS requirements

Unlike the CSRD’s predefined list in AR16, which is not defined as a legal tick-box by law, our taxonomy is all-encompassing, more consistent, and saves you time. It supports both materiality analysis and financial impact assessment, making it a core differentiator.

This comprehensive database links sustainability topics to their potential financial impacts:

> Mapped hundreds of sustainability topics to 18 financial effect types derived from four financial triggers (value chain stakeholder decisions, standard setter decisions, public perception, and system-based triggers)

> The financial effect types include changes in operating expenses, asset valuation, depreciation, cost of capital, and revenue streams.

> Provides research on financial effects tied to 200 sustainability topics, sub-topics, and sub-sub-topics of the PI Topic Taxonomy

> Supports double materiality assessments and risk/opportunity evaluations

Have a question or would like to work with us?

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