Abstract
In the previous chapters, we noted how the financial industry in general, and institutional investors in particular, have started to imbed environmental, social and governance (ESG) factors and UN Sustainable Development Goals (SDGs) into their valuation and portfolio management methodologies. In effect, the industry is acknowledging the fact that companies actively managing relevant ESG parameters are not only controlling their risk exposure better but also constructing more sustainable futures, with both dimensions leveraging each other to increase valuations. In this chapter, we elaborate on this rationale by looking at how major financial investors have adopted sustainability, either by incorporating the principles in their practices or by developing investment schemes around it. For this, we have sequentially reviewed the worlds of venture capital, private equity, hedge fund and mutual fund managers, with examples in each. We successively document how the various investor classes incorporated ESG metrics into their value creation arsenals, dedicating investments and personnel to the pursuit of higher goals.
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- 1.
BSR™ is a global non-profit organization working with a network of 250+ member companies and partners to build a just and sustainable world. With offices in Asia, Europe and North America, BSR™ develops sustainable business strategies and solutions through consulting, research and cross-sector collaborations.
- 2.
A classic Tumi characteristic was its upside-down U-shaped pockets that provided real compartments and a convenient alternative for zipping and unzipping the luggage.
- 3.
The company owned 25 design and mechanical patents and controlled all intellectual property associated with the design, production and distribution of its products worldwide.
- 4.
In June 2007, the firm actually became one of the first private equity signatories of the United Nations Principles for Responsible Investment (PRI).
- 5.
A master pack is a large box used to pack many smaller boxes or containers. The box assists in protecting the smaller cartons or packages and reduces the number of cartons to be handled during the material handling process.
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This case is an abridged and edited version of the eMBA case assignment by Claudio Mellace, Etienne Zeller and Laurent Gaye (IMD eMBA June 2018) conducted with CADMOS and its engagements funds under the supervision of Professor Benoit Leleux. Copyright © 2018 by IMD—International Institute for Management Development, Lausanne, Switzerland (www.imd.org). No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means without the prior written permission of IMD.
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Leleux, B., van der Kaaij, J. (2019). Investors’ Perspectives on Sustainability. In: Winning Sustainability Strategies. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-97445-3_7
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DOI: https://doi.org/10.1007/978-3-319-97445-3_7
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