Extract from the Cornerstone Journal of Sustainable Finance & Banking, December 2013 written by Andrew MacLeod, a Board member of Cornerstone Capital Inc. (New York), advisor to Gane Energy (Australia), Critical Resource (UK), former General Manager at Rio Tito and a former senior official of the United Nations and the International Committee for the Red Cross.

Leading companies now understand truly effective and non ‘green-washing’ community programs reduce community risk and thereby increase net present value (NPV) of their assets in non OECD economies. When valuing assets for prospective investment, are funds managers properly measuring community risk?