In the aftermath of the recent financial crisis and given rising concerns regarding sustainability challenges such as global warming or resource and water scarcity, there is growing evidence that institutional investors are increasingly reconsidering their investment approaches, and are how seeking more responsable and sustainable forms of investing. In a study published in 2008, management consultants Booz & Company forecast that by 2015 between 15 and 20% of the world’s assets under management will be managed according to Sustainability and responsible Investing principles.
At SAM they have released an annual Corporate Sustainability Assessment base don a questionnaire used to measure the sustainability performance of more than 1,200 companies. The questions address a range of issues that are long-term in nature, have an impact on corporate financial performance and are under-researched in traditional financial analysis. SAM integrates the information from the Assessment into its traditional financial valuation.
SAM’s Corporate Sustainability Assessment is also a powerful form of engagement, as its results enable companies to benchmark their sustainability performance against their peers and thus evaluate their strengths and weaknesses with regard to their sustainability strategies. Thus, companies such as Coke or Inditex are designing all its new stores and buildings according to sustainability and energy efficiency principles, being aware that more and more, to be sustainable can mean to be more competitive.
You can check out the report here.