The Sustainability Cube? – because sustainability is multidimensional in nature
Qblue Balanced
A Copenhagen based asset manager, founded in 2018 by Bjarne Graven Larsen, former CIO at ATP and OTPP
In today's world, we firmly believe that corporate value goes beyond plain profits, encompassing a wider societal impact. Recognizing this, Qblue Balanced developed the Sustainability Cube? proprietary framework to assess companies based on their so-called “societal” value creation, acknowledging that traditional financial metrics alone fall short in capturing a company's full societal contribution.
By managing numerous sub-measures ultimately belonging to the three dimensions Climate Transition, ESG Industry Leaders and UN Sustainable Development Goals, a final Sustainability Cube Score? is derived. This structure allows for a comprehensive view of each company's sustainability profile, while also being able to rank companies both within and between industries and regions.
Moreover, each of the three dimensions is examined through three distinct lenses, outlined into sub-dimensions: "Actual," "Progress," and "Sentiment." The "Actual" dimension reflects the company's current status, such as its carbon emissions. "Progress" assesses how well the company is positioned for the future, which may involve factors like product innovation and carbon reduction strategies. Lastly, "Sentiment" evaluates public perception of the company.
In brief, the Climate Transition dimension focuses on carbon emissions, green innovation, and carbon emission management, highlighting a company's capacity to shift towards a more sustainable, low-carbon future. The ESG Industry Leader dimension encompasses traditional ESG metrics, with a strong emphasis on Social and Governance practices. Lastly, the UN Sustainable Development Goals (SDGs) evaluation scrutinizes a company's products, operations, and innovation in relation to each of the 17 SDGs, ensuring alignment with global sustainability objectives.
In conclusion, Qblue Balanced's Sustainability Cube? framework offers a comprehensive assessment of companies' societal impact, going beyond traditional financial metrics, ensuring a holistic view of their sustainability performance and potential for positive societal change.