Institutional Investors own a large share of publicly traded companies, controlling a significant amount of the economy‟s working capital. These investors currently use little or no sustainability-related information to make their decisions, reinforcing a loop of increasingly unsustainable growth. This paper puts forward a new investment strategy that recognizes true movement towards sustainability and its link with bottom line benefits for investors: Strategic Sustainable Investing (SSI). To achieve this desired future, Institutional Investors must be able to recognize corporations that are strategically leading the transition towards sustainability. An Analysis Tool was developed to help address this need by identifying sectoral Emerging Sustainability Issues (ESI) using a consensus-based scientific definition of sustainability. Once ESIs are identified, companies‟ strategies regarding each issue are assessed. This Tool was scrutinized by a panel of experts in the financial and sustainable development industries, and was tested on three companies within the Unconventional Oil & Gas Sector in Canada. Results confirmed the usefulness of a tool that can recognize which companies are leading the sustainable development agenda, and identified the need for future research on the financial materiality of sustainability-oriented actions.

1. Strategic Sustainable Investing
Recognizing Value in Transitional Leadership
Nick Blandford – Timothy Nash – André Winter

3. Acronyms
Institutional Investors as a leverage point
Academic Rigor
Findings
Reflections
Next Steps

4. SRI – Socially Responsible Investing
SSI – Strategic Sustainable Investing
SSI Analysis Tool – Strategic Sustainable Investment Analysis Tool
(a.k.a. “The Tool”)
ESI – Emerging Sustainability Issue
Acronyms – Leverage Point – Academic Rigor – Findings – Reflections – Next Steps

5. Acronyms – Leverage Point – Academic Rigor – Findings – Reflections – Next Steps

6. US$
240 .06 000 000 000
trillion
Acronyms – Leverage Point – Academic Rigor – Findings – Reflections – Next Steps

7. Investment capital
Reporting
Movement
towards
sustainability
Company’s Assets
+
+
+
+
+
Above Average Returns Movement towards Sustainability
Acronyms – Leverage Point – Academic Rigor – Findings – Reflections – Next Steps

8. In what ways can Institutional Investors use a
Strategic Sustainable Development perspective to
recognize value in transitional leadership towards
sustainability?
Exploratory
Research
Data Analysis:
Identifying the
gaps
Addressing
the gaps:
Tool creation
Expert
Feedback
Tool
Testing
Discussion
and Debrief
Acronyms – Leverage Point – Academic Rigor – Findings – Reflections – Next Steps

9. First Version of the Tool
Experts 3Companies
2Emerging 5 Sustainability Issues Countries
11
Acronyms – Leverage Point – Academic Rigor – Findings – Reflections – Next Steps

10. “... being profitable is part of being sustainable. To me
it goes hand-in-hand, and you can’t be sustainable if
you do not make profit or if you create liabilities for the
future.”
Ralph Wherle– Chairman of Advisory Board / Axial Participações e Projetos
Acronyms – Leverage Point – Academic Rigor – Findings – Reflections – Next Steps

11. “... translating plans and actions into value creation,
and what the impact is on the bottom-line. That is the
Holy Grail. That is what everyone wants to know.”
Kevin Ranney – Managing Partner / Director of Research, Jantzi Research
Acronyms – Leverage Point – Academic Rigor – Findings – Reflections – Next Steps

12. “SRI is not a helpful term. It certainly has all the right
intentions, it just became a suspect label.”
Bob Willard – Author “The Sustainability Advantage” and
“The Next Sustainability Wave”
Acronyms – Leverage Point – Academic Rigor – Findings – Reflections – Next Steps

13. 2.0 TOOL OVERVIEW
Acronyms – Leverage Point – Academic Rigor – Findings – Reflections – Next Steps

14. Sector Selection
Baseline Analysis
Validation
Urgency Assessment
Severity Assessment
Systematic Contribution
Assessment
Emerging Sustainability Issues Chart
Issue
Specific
Acronyms – Leverage Point – Academic Rigor – Findings – Reflections – Next Steps

15. Public Equity
Private Equity
Venture Capital
Debt Instruments (Bonds)
Government Investments
Corporate Strategy Development
Sustainability Reporting
Acronyms – Leverage Point – Academic Rigor – Findings – Reflections – Next Steps

16. Acronyms – Leverage Point – Academic Rigor – Findings – Reflections – Next Steps