A model of long-term value creation

A model of long-term value creation

Sustainability is about strategy as much as it is about risk. Many would agree on that, but still find it difficult to act on it. Companies in virtually every industry already feel the impact of disruptive and complex new societal trends: Climate change, the energy transition, social inequality, biodiversity loss, and so on. 

Some companies approach sustainability as a strategic matter, rather than just a matter of risk. They move away from shareholder primacy and focus on long-term value creation - for all stakeholders. What can we learn from those companies? Every company is unique and will face different dilemmas en different opportunities. There is not 'one' optimal strategic approach in sustainability. We cannot simply formulate 'one' playbook to set the rules for everyone. 

But there are some lessons to draw from various companies that are currently leading the way and have begun to formulate new pioneering strategies on sustainability. This paper captures examples of these new strategies and deducts a model of long-term value creation. It shows how companies can set their strategies accordingly. Financial institutions can draw on the model to assess how future proof their investment and/or lending portfolios are.

Read the full paper.