Publications
Publications
- 2021
- CESifo Forum
Impact-Weighted Financial Accounts: A Paradigm Shift
By: Ethan Rouen and George Serafeim
Abstract
The last decade has seen an exponential increase in corporate sustainability activities and efforts by investors to use these activities in their portfolio formation, valuation, and stewardship activities. This paper explains the need for a uniform strategy to measure the impact of firms’ activities on society and the environment. In addition, it addresses the common criticisms that such proposals face, arguing that standardization will allow for comparability and the improvement of measurement over time. Lastly, it stresses how better measurement will improve managerial decision making and help to avert crises such as climate change.
Citation
Rouen, Ethan, and George Serafeim. "Impact-Weighted Financial Accounts: A Paradigm Shift." CESifo Forum 22, no. 3 (May 2021): 20–25.
About The Authors
