Monday 26 January 2009
An opportunity to help shape the quiet revolution
In the current economic situation, demonstrating the relevance of non-financial performance in the dialogue between companies and investors is a more timely challenge than ever, according to a report released by a group of companies led by Lloyds TSB and Telecom Italia together with other business and research partners.
The Centre for Sustainability & Excellence (CSE) has the honour of participating in this critically important initiative by contributing its expertise and knowledge in the development of a European framework to support dialogue between business and investors that is based on material issues of interest to both.
The interim consultation report and associated website (www.investorvalue.org) are part of a project which aims to explore the relationship between companies’ financial and non-financial performance and develop a European framework for improved company and investor dialogue. It seeks to demonstrate links between a wide range of environmental, social and governance factors and the financial performance of business through a filter of core non-financial value drivers, such as human capital, innovation and corporate governance. Through a better understanding of the causes of the long-term value of companies, investors can better identify winners and losers based on non-financial performance.
Led by Lloyds TSB and Telecom Italia with participation from other businesses and consultancies, the European Federation of Financial Analysts, the business network CSR Europe and some of Europe’s leading business schools under the banner of the European Academy of Business in Society, the project is one of a number of collaborative “laboratories” launched as part of the European Alliance for Corporate Social Responsibility with strong backing from the European Commission.
The laboratory has launched an open consultation to seek feedback on the framework, an emerging set of principles and recommendations for implementation from companies, investors, trade and sectoral bodies, accounting organisations and other key stakeholders.
The interim consultation report “Valuing non-financial performance” and feedback form are available online. We welcome your feedback as a contribution to our work. Please post your comments on the laboratory’s website at www.investorvalue.org before 28 February 2009.
