Opinion
How LPs Can Better Assess Sustainability-Linked Value Creation.
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By Tensie Whelan
As seen in: Impact Alpha
Energy pricing volatility. Extreme weather events. Commodity scarcity and disruption. Infrastructure deterioration. Employee dissatisfaction and turnover. Consumer demand for healthy, natural products. These trends, and others associated with material sustainability issues, must be part of well-managed corporate strategy and investment in today’s world.
Many corporates and investors recognize this and embrace ESG reporting and compliance. However, ESG reporting and compliance does not, by itself, drive better financial and societal performance. And most companies are not tracking the financial return on their sustainability investment.
That leaves investors without the data they need to determine if a portfolio company’s sustainability strategy is driving resiliency and better financial performance.
Read the full Impact Alpha article.
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Tensie Whelan is Distinguished Professor of Practice Emerita and Founding Director of the Center for Sustainable Business.