This episode will summarise the key findings from the 2014 report “From the Stockholder to the Stakeholder”. We now live in a world where sustainability has entered mainstream. That much is evident from the fact that over 72% of S&P500 companies are reporting on sustainability, demonstrating a growing recognition of the strong interest expressed by investors. This report, entitled From the Stockholder to the Stakeholder, aims to give the interested practitioner an overview of the current research on ESG. In this enhanced meta-study we categorize more than 200 different sources. Within it, we find a remarkable correlation between diligent sustainability business practices and economic performance. The first part of the report explores this thesis from a strategic management perspective, with remarkable results: 88% of reviewed sources find that companies with robust sustainability practices demonstrate better operational performance, which ultimately translates into cashflows. The second part of the report builds on this, where 80% of the reviewed studies demonstrate that prudent sustainability practices have a positive influence on investment performance. This report ultimately demonstrates that responsibility and profitability are not incompatible, but in fact wholly complementary. When investors and asset owners replace the question “how much return?” with “how much sustainable return?”, then they have evolved from a stockholder to a stakeholder. Content: 5.1 Stock Prices and the ‘G’ Dimension 5.2 Stock Prices and the ‘E’ Dimension 5.3 Stock Prices and the ‘S’ Dimension 5.4 Stock Prices and Aggregate Sustainability Scores

Arabesque

Episode 5: From the Stockholder to the Stakeholder - Sustainability and Stock Prices

The fourth episode in our podcast series – based on our meta-study “From the Stockholder to the Stakeholder” - will investigate sustainability and financial market performance. We now live in a world where sustainability has entered mainstream. That much is evident from the fact that over 72% of S&P500 companies are reporting on sustainability, demonstrating a growing recognition of the strong interest expressed by investors. This report, entitled From the Stockholder to the Stakeholder, aims to give the interested practitioner an overview of the current research on ESG. In this enhanced meta-study we categorize more than 200 different sources. Within it, we find a remarkable correlation between diligent sustainability business practices and economic performance. The first part of the report explores this thesis from a strategic management perspective, with remarkable results: 88% of reviewed sources find that companies with robust sustainability practices demonstrate better operational performance, which ultimately translates into cashflows. The second part of the report builds on this, where 80% of the reviewed studies demonstrate that prudent sustainability practices have a positive influence on investment performance. This report ultimately demonstrates that responsibility and profitability are not incompatible, but in fact wholly complementary. When investors and asset owners replace the question “how much return?” with “how much sustainable return?”, then they have evolved from a stockholder to a stakeholder. Content: 4.1 Meta-Studies on Sustainability 4.2 Operational Performance and the ‘G’ Dimension 4.3 Operational Performance and the ‘E’ Dimension 4.4 Operational Performance and the ‘S’ Dimension

Episode 4: From the Stockholder to the Stakeholder - Sustainability and Operational Performance

This episode will investigate the different relationships between corporate sustainability and the cost of capital and operational performance. We now live in a world where sustainability has entered mainstream. That much is evident from the fact that over 72% of S&P500 companies are reporting on sustainability, demonstrating a growing recognition of the strong interest expressed by investors. This report, entitled From the Stockholder to the Stakeholder, aims to give the interested practitioner an overview of the current research on ESG. In this enhanced meta-study we categorize more than 200 different sources. Within it, we find a remarkable correlation between diligent sustainability business practices and economic performance. The first part of the report explores this thesis from a strategic management perspective, with remarkable results: 88% of reviewed sources find that companies with robust sustainability practices demonstrate better operational performance, which ultimately translates into cashflows. The second part of the report builds on this, where 80% of the reviewed studies demonstrate that prudent sustainability practices have a positive influence on investment performance. This report ultimately demonstrates that responsibility and profitability are not incompatible, but in fact wholly complementary. When investors and asset owners replace the question “how much return?” with “how much sustainable return?”, then they have evolved from a stockholder to a stakeholder. Content: 3.1 Sustainability and the Cost of Debt 3.2 Sustainability and the Cost of Equity

Episode 3: From the Stockholder to the Stakeholder - Sustainability and the Cost of Capital

The second episode in our podcast series – based on our meta-study “From the Stockholder to the Stakeholder” – will look at the three major ways how sustainability through the integration of ESG issues can lead to a competitive advantage. We now live in a world where sustainability has entered mainstream. That much is evident from the fact that over 72% of S&P500 companies are reporting on sustainability, demonstrating a growing recognition of the strong interest expressed by investors. This report, entitled From the Stockholder to the Stakeholder, aims to give the interested practitioner an overview of the current research on ESG. In this enhanced meta-study we categorize more than 200 different sources. Within it, we find a remarkable correlation between diligent sustainability business practices and economic performance. The first part of the report explores this thesis from a strategic management perspective, with remarkable results: 88% of reviewed sources find that companies with robust sustainability practices demonstrate better operational performance, which ultimately translates into cashflows. The second part of the report builds on this, where 80% of the reviewed studies demonstrate that prudent sustainability practices have a positive influence on investment performance. This report ultimately demonstrates that responsibility and profitability are not incompatible, but in fact wholly complementary. When investors and asset owners replace the question “how much return?” with “how much sustainable return?”, then they have evolved from a stockholder to a stakeholder. Content: 2.1 Risk 2.2 Performance 2.3 Reputation

Episode 2: From the Stockholder to the Stakeholder - A Business Case for Corporate Sustainability

The first episode in our podcast series – based on our meta-study “From the Stockholder to the Stakeholder” We now live in a world where sustainability has entered mainstream. That much is evident from the fact that over 72% of S&P500 companies are reporting on sustainability, demonstrating a growing recognition of the strong interest expressed by investors. This report, entitled From the Stockholder to the Stakeholder, aims to give the interested practitioner an overview of the current research on ESG. In this enhanced meta-study we categorize more than 200 different sources. Within it, we find a remarkable correlation between diligent sustainability business practices and economic performance. The first part of the report explores this thesis from a strategic management perspective, with remarkable results: 88% of reviewed sources find that companies with robust sustainability practices demonstrate better operational performance, which ultimately translates into cashflows. The second part of the report builds on this, where 80% of the reviewed studies demonstrate that prudent sustainability practices have a positive influence on investment performance. This report ultimately demonstrates that responsibility and profitability are not incompatible, but in fact wholly complementary. When investors and asset owners replace the question “how much return?” with “how much sustainable return?”, then they have evolved from a stockholder to a stakeholder.

Episode 1: From the Stockholder to the Stakeholder - Introduction

Arabesque is an ESG Quant asset management firm. We aim to bring a new dimension to investing, using self-learning quant models and big data to assess the performance and sustainability of globally listed companies. Our rules-based approach to stock selection integrates ESG information with financial and momentum analysis, using our proprietary technology Arabesque S-Ray®. We believe that sustainability factors form the very foundation of successful markets, and our approach is based on evidence showing that corporate responsibility and profitability are wholly complementary. Join us as we explore a range of topics around sustainability, one of the most significant trends in financial market history. ‘From the Stockholder to the Stakeholder’, published by Arabesque and the University of Oxford. Gordon L. Clark, Andreas Feiner, Michael Viehs.

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