Context

Listed issuers publish sustainability reports, rating agencies aggregate their ESG data, and banks and asset managers use it to rate them internally. Different market participants have widely different methodologies to integrate sustainability risks and impacts into their strategies and investment decisions. 

Corporates do not know what investors think about them. While they are used to drive their strategies based on their stock price and their funding level, they don’t have an aggregated view on their extra-financial performance, and they don’t see how it influences them financially. 

ValueCo’s vision is to establish the dollar value of sustainability and is calling asset owners within a strategic alliance to support more transparency and create proper market incentive on sustainability while reinforcing collective engagement.

Why? 

• Issuers and investors should be rewarded by markets for their sustainability efforts.
• For investment to become a real driver for sustainability, we must leverage financial market dynamics to create proper incentive for all participants, i.e. establish the market value of sustainability.

Who?

• Community of market participants (asset owners, managers and issuers) who share the above vision.
• Co-founders: Core group of asset owners, ValueCo.
• Members: asset owners, banks, asset managers, corporates, research organisations.

What?

• Create proper Market incentive on sustainability.
• Contribute to establishing the fair dollar value of sustainability.

How? 

• Coordinate different stakeholders: asset owners, regulators, asset managers to find measures that will create market incentives on sustainability and price it more fairly.
• Bring systematic market feedback from investors to corporates on how the market perceives them from an ESG standpoint.
• Conduct research on new valuations models integrating sustainability in an explicit way.

How will you contribute to the collaboration?

• Share/ask your delegated managers to share anonymously their internal ESG views to build up our understanding of the market. 
• Optionally take part in research initiatives to understand the ESG market dynamics and figure out how to leverage them to price sustainability. 
• Take part in quarterly workshops and feedback sessions to steer the research efforts towards realistic and applicable outcomes for practitioners. 
• If relevant, promote the academic research content published by the Members in the scope of the Collaboration.