Full Program »
File
pdf 652KB |
Traditionally, most investors have only taken economic variables (profitability and risk) into account when making investment decisions. In this paper we propose two measures, the Relative Sustainable Performance Measure (RSPM) and the Measure of Commitment-failure (MC), that permit sustainable investment decision making, which takes environmental and social variables into consideration, in addition to the economic variables. This makes a Triple Bottom Line (TBL) approach to investment decision making possible. We apply our measures to the worldwide chemical sector and validate them. Moreover, we propose a 2D Graphical Sustainability Analysis, which is simple and easy for investors to understand when making investment decisions and can be used if they are concerned about environmental and social matters.
Author(s):
Maite Cubas-Díaz
University of the Basque Country (UPV/EHU)
Spain
Miguel Ángel Martínez Sedano
University of the Basque Country (UPV/EHU)
Spain