Measures for Sustainable Investment Decisions and Business Strategy

What is it about?

Reaching sustainability is a responsibility for everybody, including the companies . In this paper, we present measures that help investors to evaluate how sustainably the companies are performing (RSPM - Relative Sustainable Performance Measure) and if they are committed to sustainability over time (MC - Measure of Commitment-failure), and also help the companies to evaluate themselves. We also include a 2-dimensional analysis that makes the measures and their meanings easier to understand.

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Why is it important?

The measures we present are different to the ones traditionally used, especially MC, which, to the best of our knowledge, is the first measure to evaluate sustainable behaviour over time. This is important, because, to be really sustainable one must be committed to it. Additionally, the 2-dimensional analysis makes the analysis of sustainability of the companies easily understandable for a broad audience.

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