AccountAbility has released a comprehensive report examining the growing importance of non-financial factors on corporate performance, disclosure, and valuation. Redefining Materiality II by Marcy Murninghan was developed in response to accelerating acceptance that non-financial materiality is an influential factor in corporate valuation.
As part of a new series of publications on materiality, the report describes the landscape of various global materiality initiatives and provides a framework for corporate leaders and boards to enhance the definition and management of non-financial materiality.
“The boundaries between corporations, the environment, and society continue to blur,” said Ted Grant, Head of Global Research and Development at AccountAbility. “This blurring has made identifying and focusing on what is truly important to long-term company performance, impact, and sustainability even more critical as a governance and management discipline.”
According to Proxy Monitor, this year sustainability proposals constituted 42% of shareholder resolutions filed with Fortune 250 companies—up from 37% across the entire 2006 to 2013 time period. If your not up on sustainability you’re living in the Dark Ages, which may come again if you don’t wake up. I especially like chapter 2 on the expanding definition of materiality. Yes, standards are changing and Murninghan tells you which stakeholders are driving the train and what those changes mean for directors and executives.
On September 5, 2013, at 11:00am EDT, AccountAbility will host a webinar with report author Dr. Marcy Murninghan, editor Ted Grant, and private sector representatives. The discussion will focus on current developments in sustainability and materiality and their implications for private sector institutions. Register for the webinar.
These authors are giving much more thought to their webinar than most do. “To help us focus our discussion on the issues that are most pertinent to our webinar registrants, please take time to complete this short survey in addition to registering.”
Read how CalPERS is putting similar ideas into place in their Global Governance Program Update and from the CalPERS Sustainable Investment Research Initiative one of the most comprehensive bibliographies I’ve seen on the subject, Review of Evidence: Database of Academic Studies (1.4MB).