Cary Krosinsky: “Sustainability is ESGFQ – How to Measure Your Investments on Sustainability”

Q – Quality of management is something that can be achieved only by direct interaction and investor judgment. Hence, sustainability inevitably needs human interaction, face-to-face dialogue and understanding that management is committed to full integration of sustainability — walking the walk, not just talking the good talk.

Investing and measuring without such a framework in mind inevitably ignores some or all the risks that are critical to a company’s success. Walmart’s recently announced efforts, for example, fall short of what many investors require in a larger framework that includes judgments on management and other factors of direct relevance.

Ultimately, true sustainability may well be a holy grail — something which is specifically sought, as opposed to something which can be pinned down completely.

This is likely a good thing, as markets need winners and losers, and those who best get this right through sound judgment, creativity and innovation should win in the end, and the process is most important.

The business case ultimately always rules more often than not, and ESGFQ becomes a lens which any investor can use in this regard to form a strong opinion, as well as an investment strategy, that has both performed strongly, and is likely to continue to point out the winners and losers of tomorrow going forward.

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The Board Director Training Institute (BDTI) is a "public interest" nonprofit in Japan dedicated to training about directorship, corporate governance, and related management techniques. It is certified by the Japanese government to conduct these activities as a regulated nonprofit. Read a summary about BDTI here, and see a menu of its services for both corporations and investors here.

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