Younes shared how Investindustrial uses ROSI to track the financial yields of their portfolio companies' sustainability-driven models. Typically, the firm engages with their portfolio companies to integrate sustainability across business operations over a 3 year period, by advising executives on how to adopt ROSI as a tool for increasing their valuation.
Some additional takeaways include:
- Companies have resource efficiency data but don't typically look at it through a sustainability lens.
- It is important to engage the Chief Financial Officer in tracking sustainability metrics for financial return.
- ROSI can be used to quantify Diversity, Equity, & Inclusion issues by leveraging metrics such as the workforce turnover rate.
- Investors should be asking for ESG disclosures alongside typical financial ones.