PT - JOURNAL ARTICLE AU - John O. Matthews AU - Cathy A. Rusinko TI - Linking Sustainability and Financial Valuation: <em>Six Necessary Conditions</em> AID - 10.3905/joi.2010.19.3.128 DP - 2010 Aug 31 TA - The Journal of Investing PG - 128--135 VI - 19 IP - 3 4099 - https://pm-research.com/content/19/3/128.short 4100 - https://pm-research.com/content/19/3/128.full AB - This article argues that corporate sustainability will not become a reality until an analytical framework is developed that relates a firm’s sustainability performance to its financial value. For this to happen, formal disclosure standards and metrics for sustainable practices will have to be developed and widely followed. The article identifies six necessary conditions for sustainability reporting to become as familiar as financial reporting, which is a goal of the Global Reporting Initiative (GRI). The GRI has emerged as the dominant sustainability disclosure standard-setting organization. The movement by corporations toward sustainability reporting, driven partly by socially responsible investors, is creating the opportunity for innovations in the valuation framework used by financial analysts.TOPICS: Security analysis and valuation, risk management, performance measurement