CORPORATE SUSTAINABILITY
Corporate Sustainability is a business approach that creates long-term
shareholder value by embracing opportunities and managing risks
deriving from economic, environmental and social developments. Corporate
sustainability leaders achieve long-term shareholder value by gearing
their strategies and management to harness the market's potential
for sustainability products and services while at the same time
successfully reducing and avoiding sustainability costs and risks.
The quality of a company's strategy and management and its performance
in dealing with opportunities and risks deriving from economic,
environmental and social developments can be quantified and used
to identify and select leading companies for investment purposes.
Leading sustainability companies display high levels of competence
in addressing global and industry challenges in a variety of areas:
Strategy: Integrating long-term economic, environmental and social
aspects in their business strategies while maintaining global competitiveness
and brand reputation.
Financial: Meeting shareholders' demands for sound financial returns,
long-term economic growth, open communication and transparent financial
accounting.
Customer & Product: Fostering loyalty by investing in customer
relationship management and product and service innovation that
focuses on technologies and systems, which use financial, natural
and social resources in an efficient, effective and economic manner
over the long-term.
Governance and Stakeholder: Setting the highest standards of corporate
governance and stakeholder engagement, including corporate codes
of conduct and public reporting.
Human: Managing human resources to maintain workforce capabilities
and employee satisfaction through best-in-class organisational learning
and knowledge management practices and remuneration and benefit
programs.
Corporate sustainability performance is an investable concept.
This is crucial in driving interest and investments in sustainability
to the mutual benefit of companies and investors. As this benefit
circle strengthens, it will have a positive effect on the societies
and economies of both the developed and developing world.
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