Erasmus Platform for Sustainable Value Creation

Our current economic system is based on linear growth and consumption. Our planetary resources however are limited and running out. To keep our planet liveable for both current and future generations, the prevailing paradigm is untenable and asks for change. This, in short, sums up the need for a sustainable economy, to which the financial sector can be a driving force.

The key driver for sustainable development is integrated thinking. Integrated thinking in finance requires, first and foremost, a mindset that is open to integrate the social foundations and the planetary boundaries into finance. The Platform promotes integrated thinking in finance by combining financial, social and environmental returns.

Dirk Schoenmaker, Academic Director of the Erasmus Platform for Sustainable Value Creation

New book publication

This open access textbook by Dirk Schoenmaker and Willem Schramade offers a guide to corporate finance for modern companies that want to create long-term value. Drawing on recent literature on sustainable companies, it starts by analysing the Sustainable Development Goals as a strategy for the transition to a sustainable economy. Next, it translates the general concept of sustainability into core corporate finance methods, such as net present value, company valuation, cost of capital, capital structure and M&A.

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A growing need for new methods...

Neo-classical finance theory finds it difficult to address sustainability challenges adequately, since the prevalent model is designed to mainly maximize short-term results and to address mostly shareholders. One of the biggest challenges for the financial sector will be to take a more integrated and long-term approach. To truly add value in the long run.

To make the transition towards a sustainable economy

There is a growing need for new methods to incorporate sustainability into asset pricing and valuation. Moreover, corporate governance is making a transition towards long-term value creation as the ultimate goal for corporates. How can research and education promote to such practice? RSM has established a platform to foster thought-leadership and excellence in this field.

Interdisciplinary approach

Addressing these questions requires an interdisciplinary approach. Not only research in finance is needed, but the fields of economics, sustainability, strategic management and law are also connected. Rotterdam School of Management works in close cooperation with the economics and law faculties at Erasmus University to deliver such integrated thinking.

A hub to provide meaninful debate and insights

The purpose of this platform is to develop new insights through research and education in close collaboration with leading sustainable finance players in the industry and academia. The platform brings together academic faculty research, PhD, Master and Bachelor students, MBAs and executive education, NGOs and professionals in the financial industry.