One thing we often hear as we talk to project owners interested in embedding social equity into their projects is the challenge of justifying the cost of the investment. This is not unlike the challenges faced with getting greenlit for environmental sustainability projects.
SEAM has attempted to address this issue through evidence and research. We share statistics and data from an overwhelming number of research studies and reports about the benefits of social sustainability for companies. I have PowerPoint deck after deck showing the latest percentages of customers who won't purchase from, employees who won't work for, or profit margin growth for companies that perform well on social factors.
But we were still coming up short. While this is compelling information, it is intangible and disconnected from the financial value it contributes to the bottom line. It doesn't answer the base-level question they have, which is, "What is my return on investment?" So we went back to the drawing board.
The research shows that social sustainability drives business and societal success, but quantifying the financial impact of efforts in these areas is necessary. We want to make SEAM Certification the easy choice, so we needed a way to connect social sustainability strategies with financial performance, ensuring that efforts to promote social equity and social sustainability also lead to measurable financial benefits.
So, we developed the ROSSI™ Calculator to bridge the gap and make that connection. We started by researching tools already in use. We based our foundational model on the NYU Stern Center for Sustainable Business ROSI™ Methodology. Corporate leaders and investors use this Return on Sustainability Investment methodology to bridge the gap between sustainability strategies and financial performance. While our calculator focuses only on social factors, the NYU Stern ROSI Methodology is a much more detailed dive into all the ESG factors of a sustainability program. I urge you to visit that site to learn more.
We then explored the latest research to ensure we had the most up-to-date statistics. During the calculator's development, we examined hundreds of studies, whitepapers, and reports on the direct relationship between social sustainability and financial performance. All quoted research is from 2019 to 2024. We selected the most relevant and applicable statistics as the calculator's foundation.
We ended up with a simple model that allows you to calculate your return on social sustainability (SEAM) investment in less than 20 questions. The ROSSI Calculator is designed to be user-friendly and straightforward, hoping to be the missing link to providing a solid business case for current and future social sustainability initiatives.
For more information about the methodology, formulas, and research behind the calculator, please visit https://www.seamcertification.org/rossi. We value your feedback on the tool and have provided a feedback form at the bottom of that webpage. Your insights are important to us and will help us continue to improve the ROSSI Calculator. We can't wait to see what you think!
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