CISL and Compounding factor: Difference between pages

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''Sustainability - sustainable finance.''
''Financial maths.''


The Cambridge Institute for Sustainability Leadership, established to develop leadership and solutions for a sustainable economy.
(CF).  


A compounding factor is a number greater than one, that we multiply a present value by, to work out its [[Future Value]] (FV) as:


== See also ==
FV = CF x present value.
* [[Cambridge Institute for Sustainability Leadership]]
 
* [[Cambridge Judge Business School]]
 
* [[Corporate social responsibility]]
The Compounding Factor is calculated from the periodic yield as:
* [[Corporate Sustainability Assessment]]
 
* [[Degradation]]
CF = (1 + periodic yield)<sup>n</sup>
* [[Development finance institution]]
 
* [[Environmental profit and loss]]
Where:
* [[ESG investment]]
 
* [[Fiduciary duty]]
n = number of periods
* [[Forum for the Future]]
 
* [[Global Sustainable Investment Alliance]]
 
* [[Inclusion]]
<span style="color:#4B0082">'''Example'''</span>
* [[International Sustainability Standards Board]]
 
* [[Metaeconomics]]
Annual effective yield (r) = 6%.
* [[Natural capital]]
 
* [[Organic]]
Number of years in the total period (n) = 2.
* [[Reputational risk]]
 
* [[Return on Sustainability Investment]]
Then:
* [[Risk management]]
 
* [[Stewardship]]
Compounding Factor = (1 + r)<sup>n</sup>
* [[Sustainability]]
 
* [[Sustainability Accounting Standards Board]]
= 1.06<sup>2</sup>
* [[Sustainability bond]]
 
* [[Sustainability Linked Loan Principles]]
= 1.1236.
* [[Sustainability reporting]]
* [[Sustainable Development Goals]]  (SDGs)
* [[Sustainable finance]]
* [[Sustainable Finance Disclosure Regulation]] (SFDR)
* [[Triple bottom line]]
* [[UK Sustainable Investment and Finance Association]]




==External link==
== See also ==
*[https://www.cisl.cam.ac.uk/about Cambridge Institute for Sustainability Leadership - about us]
* [[Compounding effect]]
* [[Discount factor]]
* [[Future value]]
* [[Present value]]


[[Category:The_business_context]]
[[Category:Financial_management]]
[[Category:Corporate_finance]]
[[Category:Manage_risks]]

Revision as of 14:28, 26 June 2019

Financial maths.

(CF).

A compounding factor is a number greater than one, that we multiply a present value by, to work out its Future Value (FV) as:

FV = CF x present value.


The Compounding Factor is calculated from the periodic yield as:

CF = (1 + periodic yield)n

Where:

n = number of periods


Example

Annual effective yield (r) = 6%.

Number of years in the total period (n) = 2.

Then:

Compounding Factor = (1 + r)n

= 1.062

= 1.1236.


See also

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