RT Journal Article
SR Electronic
T1 Linking Sustainability and Financial Valuation: <em>Six Necessary Conditions</em>
JF The Journal of Investing
FD Institutional Investor Journals
SP 128
OP 135
DO 10.3905/joi.2010.19.3.128
VO 19
IS 3
A1 John O. Matthews
A1 Cathy A. Rusinko
YR 2010
UL https://pm-research.com/content/19/3/128.abstract
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