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© 2005

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The sdEffect™: Translating Sustainable Development into Financial Valuation Measures

A Pilot Analytical Framework

Authored by Yachnin & Associates, Sustainable Investment Group Ltd. and Corporate Knights Inc.

February 2006


About The sdEffect™

The sdEffect™ is an initiative aimed at advancing the integration of sustainable development (SD) considerations into investment decision making. It focuses on further isolating the effect of corporate SD practices on share price performance/company valuations and expressing this effect - The sdEffect™ - in financial language. In so doing, it helps demonstrate that SD, a business aspect traditionally viewed as "soft" by the financial community, can have a "hard," material and calculable impact on share price and company value.

The initiative is a collaborative effort that brings together diverse stakeholders to advance knowledge and communication in the area of SD and valuation. For the latest insights and participant information, please visit www.sdeffect.com or email info@sdeffect.com.

About the Authors1

Yachnin & Associates

Yachnin & Associates (Y&A) is an Ottawa-based policy development and management consulting group. Among the company's core areas of focus are sustainable development and corporate social responsibility. Y&A is very active in helping integrate considerations of SD into investment decision making and promoting related dialogue.

Sustainable Investment Group Ltd.

Founded in 1995, Sustainable Investment Group (SIG) is a consulting firm that specializes in the area of sustainable development and finance. Its major focus at present is exploring the link between SD and the creation of shareholder value. SIG's core competencies include the application of financial analytics to SD-related aspects of business.

Corporate Knights Inc.

Founded in 2002, Corporate Knights Inc. (CK) is an independent Canadian-based media company that publishes the world's largest circulation magazine focusing on corporate responsibility. CK also publishes the annual Best 50 Corporate Citizens in Canada as an insert in Canada's national Globe and Mail newspaper, and the annual Global 100 Most Sustainable Corporations in the World, announced each year at the World Economic Forum in Davos.

Acknowledgements »