ABSTRACT

Corporate sustainability, as defined by Sustainable Asset Management (SAM), is an approach to business creating long-term shareholder value. The competitive position held by any market participant determines its share of overall value-added. This chapter explains SAM's research approach to identifying companies that are: better than their peers at seizing opportunities and managing risks deriving from economic, environmental and societal developments; and are attractive investment opportunities. Being based on the value-added impact of a company's approach to trends and developments, SAM analyses companies' strategic positioning within their industry and their ability to seize the opportunities and to manage the risks that arise from global and industry-specific developments. In SAM's model, management decisions regarding sustainability criteria are assumed to impact value drivers such as a company's resource efficiency, workforce motivation, innovation potential, reputation with stakeholders, and exposure to a variety of risk factors, both internal and external.