Title
Prof. Dr.
Last Name
Nerlinger
First name
Martin
Email
martin.nerlinger@unisg.ch
ORCID
Phone
+41 71 224 70 31
1 - 3 of 3
-
PublicationAssessing the Sustainability of the Business Model: Firm Governance Using the Sustainable Value Creation Framework and Its MeasurementsThe generally accepted definition of sustainability's has a future orientation where "the needs of the present" are satisfied "without compromising the ability of future generations to meet their own needs” (Brundtland, 1987). That sustainability is at the firm level (as in von Carlowitz, 1712) is an increasingly self-evident proposition. Yet leaders aspiring to make their organizations sustainable face a multitude of challenges, and not exactly because of a lack of choice in the CSR and ESG options available to them. Bafflement can easily turn into frustration when inconsistency, the lack of connection to the firm’s business model or poor-quality data become apparent. On the other hand, progress towards applying sustainability has been considerable over the last decade as exemplified by the ‘big’ global ESG framework and standard-setting organizations. Yet despite the progress made by the copious number of frameworks and measurements, serious issues and blind spots persist. For instance, monopoly positions, subsidies or regulatory privileges are clearly unsustainable and yet rarely captured by existing sustainable frameworks and measurements. This is but one issue—a review of all those identified in the academic and practitioner literature is the paper's first step. In a second step, this paper proposes requirements for sustainability frameworks and measurements. These include: (i) comprehensive capture of sustainable activities; (ii) comprehensive capture of unsustainable activities; (iii) pricing all the value creation and appropriation of the firm; (iv) measuring business model sustainability in relation to the financial statement; (v) measuring the balance of the business model’s sustainable and unsustainable activities. In the third and final step, the paper discusses two sustainable value creation measurements (VCr/VCp) anchored in a multi-disciplinary body theory while developing specific metrics for their calculation. Once empirically validated, the VCp/VCr measurements might inform managers and investors in their choices, inform public policy and could even be employed to adjust equity valuations and credit ratings.
-
PublicationGet green or die trying? Carbon risk integration into portfolio management.Portfolio management is confronting climate change more strongly and rapidly than expected. Risks arising from the transition from a brown, carbon-based to a green, low-carbon economy need to be integrated into portfolio and risk management. The authors show how to quantify these carbon risks by using a capital markets–based approach. Their measure of carbon risk, the carbon beta, can serve as an integral part of portfolio management practices in a more comprehensive way than fundamental carbon risk measures. Apart from other studies, the authors demonstrate that both green and brown stocks are risky per se, but there is no adequate remuneration in the financial market. In addition, carbon risk exposure is correlated with exposures to other common risk factors. This requires due diligence when integrating carbon risk in investment practices. By implementing carbon risk screening and best-in-class approaches, the authors find that investors can gain a desired level of carbon risk exposure, but this does not come without well-hidden costs.Type:Journal:Volume:Issue:
-
PublicationType:Journal:Volume:Issue: