Editing Discounted cash flow (section)

== Integrated future value ==
To address the lack of integration of the short and long term importance, value and risks associated with natural and social capital into the traditional DCF calculation, companies are valuing their environmental, social and governance (ESG) performance through an [[Integrated management|Integrated Management]] approach to reporting, that expands DCF or Net Present Value to Integrated Future Value (IntFV).<ref>{{Cite book|title=One Report: Integrated Reporting for a Sustainable Strategy|url=https://archive.org/details/onereportintegra00eccl_0|url-access=registration|last1=Eccles|first1=Robert|last2=Krzus|first2=Michael|publisher=Wiley|year=2010|isbn=9780470587515 }}</ref>

This allows companies to value their investments not just for their financial return but also the long term environmental and social return of their investments. By highlighting environmental, social and governance performance in reporting, decision makers have the opportunity to identify new areas for value creation that are not revealed through traditional financial reporting.
As an example, the [[social cost of carbon]] is one value that can be incorporated into Integrated Future Value calculations to encompass the damage to society from greenhouse gas emissions that result from an investment.

This is an integrated approach to reporting that supports Integrated Bottom Line (IBL) decision making, which takes [[triple bottom line]] (TBL) a step further and combines financial, environmental and social performance reporting into one balance sheet. This approach provides decision makers with the insight to identify opportunities for value creation that promote growth and change within an organization.
<ref>{{Cite journal|last=Sroufe|first=Robert|date=July 2017|title=Integration and Organizational Change Towards Sustainability|url=https://www.researchgate.net/publication/318126290|journal=Journal of Cleaner Production|volume=162|pages=315–329|via=Research Gate|doi=10.1016/j.jclepro.2017.05.180}}</ref>