Extract from the Cornerstone Journal of Sustainable Finance & Banking, January 2014 written by Ben Dear, Partner at Osmosis Investment Management in the United Kingdom. Subscribers can view the full article in the January edition.
Any firm that is therefore able to standardize and use the data to provide objective, comparable efficiency rankings, will be highly valued in this new paradigm of permanently high commodity prices and increasingly aligned social and private costs. Investors will have increased transparency in order to determine where to allocate their resources. Public policy makers, increasingly aware that economic growth comes from increasing productivity, will be able to monitor, punish and phase out sectors and firms failing to perform in favor of those that can and companies will be able to benchmark themselves against their peers, taking remedial action where required. The game is set; those that have recognized this paradigm shift and are acting upon it are already winning the future.