TY - JOUR T1 - Linking Sustainability and Financial Valuation: <em>Six Necessary Conditions</em> JF - The Journal of Investing SP - 128 LP - 135 DO - 10.3905/joi.2010.19.3.128 VL - 19 IS - 3 AU - John O. Matthews AU - Cathy A. Rusinko Y1 - 2010/08/31 UR - https://pm-research.com/content/19/3/128.abstract N2 - 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 ER -