Extract from the Cornerstone Journal of Sustainable Finance & Banking, October 2013, written by David Lubin, Managing Director of S3, and retired as Co-Chairman and Managing Director of Renaissance Worldwide. He served as lead contributor to the UNGC in development of the report entitled, The Value Driver Model – A Tool for Communicating the Business Value of Sustainability
Among the critical issues is the challenge of engaging the financial markets in understanding the growing significance of sustainability strategy as a driver of innovation and business value. The gap between mainstream investors and leading companies regarding the business value of sustainability is sizeable, understandable, and problematic. In response to the need to bridge this gap, the Value Driver Model(VDM) is presented as an approach to help firms establish the relevance of sustainability to their core business strategies and improve how they communicate the business value of sustainability to investors and analysts.