Sustainable Value: Corporate Responsibility, Market Valuation and Measuring the Financial and Non-Financial Performance of the Firm

The report 'Sustainable Value' produced from the 2 year EABIS funded study addresses how the environmental, social and governance performance of companies impacts their long term business success and how companies overcome the obstacles that often appears to stop the investment community from taking environmental, social and governance performance into account in assessing long term sustainable value creation.

The report proposes a "Value Creation Framework" - to show how improved environmental social and governance performance can impact the drivers of financial performance. The Value Creation Framework challenges the existing dominant norm of shareholder value; and of how value is created or destroyed. In the context of growing sustainability pressures worldwide, the objective of the framework is to help business embedding Corporate Responsibility and Sustainability and support the investment community in refining business valuation models.

According to the report, this new approach will have to overcome obstacles - limited data, lack of understanding, shifting terminologies and few incentives to change - in business and in the investment community.

The research group, therefore, proposes a number of concrete recommendations and initiatives to help change behaviours and mindsets in these communities. The objective is to implement the Value Creation Framework and create a critical mass of companies and investors using the framework.

Download the full report here or visit the project website to learn more about:

• The research papers supporting the final report
• Proposals to overcome barriers in mainstream and communicating non-financial performance
• Recommendations on how to improve communications around meaningful indicators of value created through non-financial performance