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2400 words paper

guidance

Guide for using the SROI Network spreadsheet
1. General
There is no support for this spreadsheet as a free download and the guidance below is not designed to be a work book. Support and training are available from the SROI Network.
The spreadsheet has been designed to follow the methodology in the SROI Guide published by the Cabinet Office 2009. It is recommended that the Guide is read before using the spreadsheet. It is the responsibility of the user to ensure that the spreadsheet is completed correctly in accordance with the requirements of the SROI Guide.
The spreadsheet analyses the value of the investment in one period (for example one year) and is not designed for analysis of capital projects where the financial returns from an investment arise over several years, each year generating benefits
The duration of outcomes is limited to 5 years
The spreadsheet will not be applicable in all situations. In particular it is not designed to deal with captial projects, more complex systems or outcomes that start more than one year after the activity. This is not an exclusive list.
2. Structure
The spreadsheet has not been protected in order to provide users with some flexibility. Great care should be taken in making any changes to ensure the integrity of the calculations. It is the responsibility of the user to ensure that any changes do not effect the integrity of the calculations. In particular
????????? new columns should not be added
????????? additional rows can be added to accommodate new stakeholders but the equations in an existing row will need to be copied into any new rows
????????? no changes should be made to cells containing formulae
3. Specifics
Column ? Inputs, What is the value of the inputs in currency
Cells in this column should only be filled in with number. Do not include the currency sign, for example ?
Column ? Outcomes, quantity
Cells in this column should only be filled in with a number. Do not include text.
Column ? Outcomes, duration
Cells in this column should only be filled in with a whole number. Do not include text, for example ?years?. The spreadsheet has been designed on the basis that the duration will be in years and has restricted this to a maximum of 5. If more than 5 is entered the calculation will be based on 5 years.
Column – Outcomes start
This column should be completed with a ‘1’ if the outcomes start in the period of the activity and a ‘2’ if the outcomes start in the first year after the activity
This spreadsheet is not designed to deal with outcomes that start more than one year after the activity
The earlier version of the SROI Network spreadsheet did not include this option. To obtain the same result in both version 1.1 and 1.2 set this at ‘2’
Column ? Outcomes, value
Cells in this column should only be filled in with numbers for example ?4.25?.
Columns in Stage 4
Cells in these columns should only be filled in with numbers between 0 and 100.
Calculating social return
Apart from the cell to the right of the discount rate, nothing should be entered into cells in these columns.
Discount rate
Outcomes are assumed to occur after the activity and to occur at the end of the period. If the duration of the outcomes is 1 year, then the value of the outcomes will be discounted by one year.
As a result if you have outcomes that occur during the activity, they will be discounted by one year for valuation purposes.
If you have outcomes that occur during the activity and last for one year afterwards, then, as above, the outcomes that last for one year after will be discounted by two years.

scope

Social Return on Investment – The Impact Map
SROI Network Spreadsheet for developing SROI analysis. Only to by used as part of SROI Network training. The spreadsheet does not include any guidance
Organisation Name
Objectives Date
Scope Activity Objective of Activity Time Period
Contract/Funding/ Part of org? Purpose of Analysis Forecast or Evaluation

impact map

Social Return on Investment – The Impact Map
SROI Network Spreadsheet for developing SROI analysis. Only to by used as part of SROI Network training. The spreadsheet does not include any guidance
Stage 1 Stage 2 Stage 3 Stage 4
Stakeholders Intended/unintended changes Inputs Outputs The Outcomes (what changes) Deadweight % Displacement % Attribution % Drop off % Impact Calculating Social Return Calculating Social Return
Who do we have an affect on? Who has an effect on us? What do you think will change for them? What do they invest? What is the value of the inputs in currency (only enter numbers) Summary of activity in numbers Description Indicator Source Quantity Duration Outcomes start Financial Proxy Value in currency Source What would have happened without the activity? What activity did you displace? Who else contributed to the change? Does the outcome drop off in future years? Quantity times financial proxy, less deadweight,displacement and attribution Discount rate 3.5% Discount rate
How would the stakeholder describe the changes? How would you measure it? Where did you get the information from? How much change was there? How long does it last after end of activity? (Only enter numbers) Does it start in period of activity (1) or in period after (2) What proxy would you use to value the change? What is the value of the change? (Only enter numbers) Where did you get the information from? Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
50000 0.25 2 1 24,000.00 10% 10% 40% 20% 2,916.00 2,916.00 2,916.00 2,332.80 0.00 0.00 0.00 2,916.00 2,916.00 2,332.80 0.00 0.00 0.00
100000 35 2 2 110,000.00 10% 10% 40% 20% 1,871,100.00 0.00 1,871,100.00 1,496,880.00 0.00 0.00 0.00 1,871,100.00 1,871,100.00 1,496,880.00 0.00 0.00 0.00
0% 0% 0% 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0% 0% 0% 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0% 0% 0% 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0% 0% 0% 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0% 0% 0% 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0% 0% 0% 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0% 0% 0% 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0% 0% 0% 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0% 0% 0% 0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total 150,000.00 Total 1,874,016.00 2,916.00 1,874,016.00 1,499,212.80 0.00 0.00 0.00
Present value of each year 2,916.00 1,810,643.48 1,399,531.19 0.00 0.00 0.00
Total Present Value (PV) 3,213,090.67
Net Present Value 3,063,090.67
(PV minus the investment)
Social Return 21.42
Value per amount invested

Note: The Assignment must be submitted online using the Final Assignment Dropbox.

The assignment will be returned to you via this dropbox.

Final Assignment – 25%

Description

You are the sustainability consultant of a firm or organization of your choice. Analyze

their report and compare it with a report of a competitor. Comment on their differences

and provide proposals for further developing your firm’s or organizations sustainability

reporting based on the background and tools that have been discussed in class.

Write a report for both sustainability reports using the following structure:

1. Cover page with name of student and student id, and sources of the reports
including the names of the firms/organizations

2. Connection to general sustainability issues and reporting of impacts for both
reports

3. Description of the accounting methods and tools applied by both reports

4. Assessment of the reliability, validity of the presented data and activities of both
reports

5. Assessment of the materiality of the reported data and activities for both the
company and stakeholders

6. Assessment of the general quality of the two reports

7. Description of the main differences between the two reports

8. Proposals for further improvements for the reporting of ‘your’ firm or organization.

DUE DATE:

April 5, 2022, 11:59 pm.

LENGTH:

8 – 12 pages, double spaced, 12 pt. size, cover page excluded

EXPECTATIONS:

o Meet the stated requirements of the assignment.

o The assignment is well written and well structured.

o The arguments are convincing and supported by reliable references including
those on the readings list.

HOW TO SUBMIT YOUR ASSIGNMENT:

Your assignment must be submitted online to the Final Assignment Dropbox. The

assignment will be returned to you via this dropbox. Dropboxes can be accessed by

clicking Assessments and then Dropbox on the course navigation bar above.

Your assignment must be submitted in one of the following file types:

o Microsoft Word (.doc or .docx)

o Rich Text Format (.rtf)

o Do not submit in pdf format

Please refer to the Submitting to a LEARN Dropbox page for general guidelines and

how to submit to a dropbox.

MARKING RUBRIC:

Excellent Very good Good

Cover page with name of student and student id,
and sources of the reports including the names of
the firms/organizations

1

Connection to general sustainability issues and

reporting of impacts for both reports

3 2 1

Description of the accounting methods and tools

applied by both reports

3 2 1

Assessment of the reliability, validity of the

presented data and activities of both reports

3 2 1

Assessment of the materiality of the reported data
and activities for both the company and
stakeholders

6 3 1

Assessment of the general quality of the two
reports

6 3 1

Description of the main differences between the
two reports

3 2 1

Proposals for further improvements for the
reporting of your firm or organization

3 2 1

Assignment well written and structured 2 1

30 points = 100%

SUSTAINABLE INVESTING

An Introduction To ESG

FOR INSTITUTIONAL CLENT USE ONLY. NOT FOR GENERAL DISTRIBUTION.

Shaz Merwat | Sustainability Analyst | CIBC Capital Markets Inc.

Refer to the “Important Disclosures” section at the end of this report for important required disclosures, including potential

conflicts of interest.

Refer to the “Price Target Calculation” and “Key Risks to Price Target” sections at the end of this report, or at the end of each

section thereof, where applicable.

February, 2022

Sustainability in investing is not a new concept

Numerous considerations of sustainability

? Is the business model sustainable? Are profits sustainable? (business risk)

? Is the dividend sustainable? Is there too much debt? (capital risk)

? Is the jurisdiction in which a company operates stable? (political risk)

? Is there a succession plan in place? (transition risk)

ESG places additional focus on environmental and social considerations

Governance is largely well established within the investing community

? Protecting interests of minority stakeholders

? Separation of CEO and Chairman of the Board

? Compensation structure

In truth, sustainability has always mattered

CONFIDENTIAL 1

Considering Sustainability In Investing

CONFIDENTIAL 2

Why Sustainability Is In Focus Today

We have always considered

sustainability, but why is it such a hot

topic today?

? Climate Crisis

? Shift in make-up of company value

? Intangible assets make up a bigger

portion, and are harder to manage

? Intangible assets are usually not located

on financial statements

? What is the value of Elon Musk to Tesla?

? Need for non-financial data to help

measure intangible value

? ESG is hard because 1) it?s difficult to

quantify and 2) sits in intangibles

? If one gets it wrong, it can wipe out a lot of

market capitalization

Source: Ocean Tomo, Annual Study of Intangible Asset Market Value, 2020

17%

32%

68%

80% 84%
90%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1975 1985 1995 2005 2015 2020

S&P 500

Intangb ile A ssets Tangible Assets

CONFIDENTIAL 3

ESG Can Mean A Lot Of Things To A Lot People

There are trade-offs within sustainability

? Fiscal deficits vs. environmental sustainability (ESG vs. others)

? Affordable housing vs. climate change (ESG vs. ESG)

? Within environmental issues, nuclear case in point (E vs. E)

? Which are the most impactful to the business? SASB Materiality Assessments

Even defining a desired ESG metric can be challenging!

? Not black and white, more of an art vs. a science

? For example, assume we determine gender diversity is important? how do we define it?

? Company-wide diversity?

? Middle management diversity?

? C-suite diversity?

? CEO diversity?

? Board-level diversity?

? Momentum on scoring? Is the current situation more important than historical performance?

? Do we use a weighted-average of all the above? What are the weights? Do the weights shift over time?

CONFIDENTIAL 4

And Ratings Can Differ Quite A Lot, Too

Different interpretations of ESG can lead to different conclusions

ESG scores not as consistent as Credit scores

This leads to challenges when evaluating which companies have ?better? ESG records

Note: Credit scores taken from Moody?s, S&P, Fitch and Egan-Jones. ESG scores taken from MSCI, Sustainalytics, S&P, Bloomberg and Refinitiv.

Source: Bloomberg, Refinitiv and CIBC World Markets Inc.

CONFIDENTIAL 5

Four Major Types Of Sustainability Investing

Source: CIBC World Markets Inc.

Exclusion Inclusion Integration Engagement

D
e
fi

n
it

io
n

Excluding investments from a

particular sub-universe (securities,

sectors, countries, etc.) that is

deemed inappropriate to the

fund/investor’s moral compass.

This was largely the beginning of

ESG investing.

Focusing on particular investments

(securities, securities, projects,

etc.) that targets a specific positive

impact and/or is considered

financially attractive. Often referred

to as Impact Investing.

Incorporating ESG themes, risks,

opportunities and/or metrics into

the overall investment

strategy/security selection. We

believe this is dominant form of

ESG investing.

Using ESG as a way to actively

increase corporate or

management’s engagement on a

particular ESG issue. This is

largely done through proxy voting

but also from external agencies

(UN PRI).

E
x
a

m
p

le
s Excluding Tobacco, Firearms,

Alcohol, Adult Entertainment, etc.

Fossil-free, carbon-neutral, etc.

Renewable energy, clean-

technology, electric vehicles, etc.

Just as investors can screen for

leverage or balance sheet risk,

one can screen for over-exposed

environmental risk (carbon taxes)

or social risk (increased royalties,

taxes, etc.).

Owners pressuring management

for additional disclosure around

ESG issues as commonly seen to

happen to oil and gas companies

(Exxon) over the years.

P
ro

s

Relatively basic and easy to

implement.

Very clear and transparent

message to investors (minimizes

potential for greenwashing).

Relatively basic and easy to

implement.

Very clear and transparent

message to investors (minimizes

potential for greenwashing).

Allows for a more diversified

approach to portfolio construction

and minimizes the possibility for

tracking error. Forces investors to

think through the most impactful

ESG themes, risks, metrics, by

security.

Aligns investor and management

on specific ESG issues, and

should influence corporate

strategy for value creation over the

long term.

C
o

n
s Introduces tracking error relative to

a benchmark.

Portfolio can be skewed to one

very specific set of investments

and thus exposed to meaningful

(diversifiable) investments risks.

Harder to implement and involves

the creation of an overall

framework. For example, which

ESG themes, metrics, etc. will the

investor focus on?

Requires meaningful ownership of

the firm, or reputation to be able to

garner support from other owners.

Source: Financial Times, Global Carbon Budget, IPCC AR6 Report, UNEP Emissions Gap Report 2021 and CIBC Word Markets Inc.

CONFIDENTIAL 6

We Remain Behind On Climate

The 1.5-degree scenario is likely out of reach; the aim now is to stay within 2 Degrees

Note: Emissions shown here are total global emissions from the combustion of

fossil fuels, i.e., all energy-related emissions.

Source: Richard Wood et al (2020) Beyond peak emissions transfers: historical

impacts of globalization and future impacts of climate policies on international

emissions transfers, Global Carbon Budget and CIBC World Markets Inc.

CONFIDENTIAL 7

Who Is Responsible For Emissions?

Who is responsible for emissions, producers or

consumers?

Hard to separate emissions, as global economy

is interconnected

? Global trade

? Global capital

? Multinational companies

Emissions shifted to the developing world with

globalization and offshoring of production

Important to consider both produced and

consumed emissions

CONFIDENTIAL 8

Who Is Responsible For Emissions?

Even easy to understand processes, such as emissions from oil, can be tricky

70%-80% of oil emissions come at combustion. This implies consumers are responsible!

Wells-To-Tank Emissions: 20%

? Upstream (oil production): 10% to 15%

? Midstream (transportation): 5%

? Downstream (refining): 5% to 10%

Tank-To-Wheels: 80%

? Combustion (driving a car)

CONFIDENTIAL 9

How Climate Change Will Be Funded

It is estimated we will require US$275 trillion to reach net zero emissions (McKinsey)

This will come from the following sources of capital

? Government

? Corporations

? Asset Managers

? Banks

? Funds

? Pension plans / Sovereign funds

The majority of this will not come from government

Increasing importance of Banks and Asset Managers to re-orient capital

? GFANZ Alliance (Glasgow Financial Alliance for Net Zero) represents US$130 trillion of committed capital across

450 financial firms

? C$1.5 trillion in net-zero commitments from Canada?s Big 5 Banks

CONFIDENTIAL 10

How To Succeed In A Career In Finance

You have a curious mind

You are a critical thinker

You are comfortable with (lots of) data

You are commercial

You are a team player

No substitute for a strong work ethic

Take ownership of your work

Does that make sense to you?

Important Disclosure:

Analyst Certification: Each CIBC World Markets Inc. research analyst named on the front page of this research report, or at the beginning of any subsection hereof, hereby certifies that (i)

the recommendations and opinions expressed herein accurately reflect such research analyst’s personal views about the company and securities that are the subject of this report and all other

companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst’s compensation was, is, or will be, directly or indirectly,

related to the specific recommendations or views expressed by such research analyst in this report.

Potential Conflicts of Interest: Equity research analysts employed by CIBC World Markets Inc. are compensated from revenues generated by various CIBC World Markets Inc. businesses,

including the CIBC World Markets Investment Banking Department. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. CIBC

World Markets Inc. generally prohibits any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers.

Additionally, CIBC World Markets Inc. generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that such analyst covers.

In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report, CIBC World Markets Inc. may have a long position of less than 1% or a

short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon.

Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures set forth below, may at times give rise to potential conflicts of interest.

CIBC World Markets Inc. does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that CIBC World Markets Inc. may have a

conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

Analysts employed outside the U.S. are not registered as research analysts with FINRA. These analysts may not be associated persons of CIBC World Markets Corp. and therefore may not

be subject to FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Important Disclosure Footnotes:

For important disclosure footnotes for companies mentioned in this report that are covered by CIBC World Markets Inc., click here:

Companies mentioned in the report but not listed are not covered by fundamental research at CIBC.

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