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People As Assets

ibm

In a BusinessWeek article dated March 28, 2014, the former chairman, president and CEO of IBM, Samuel Palmisano, writing about a new era of global enterprise, describes the importance of managing and deploying human capital internationally “as one global asset.”

In the post, Palmisano perpetuates the same myth many other C-suite executives have for many years: The idea that people are assets in a company. While this may sound good, the reality of simple accounting rules is very different.

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Green REITs

GRELJ-CleanTech-Green-REIT

A study by researchers at Maastricht University establishes another positive link between financial returns and sustainability, finding that real estate investment trusts (REITs) with greener portfolios perform better.

A key conclusion was that higher returns on both assets and equity were directly proportional to the adoption of Energy Star and LEED certifications on U.S. commercial holdings. In addition, more energy efficient and sustainable properties were less exposed to business cyclicality and occupancy risk.

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Integrated Reporting

S-n-V-Fin-Statements

A recent Harvard study looked at the evolution of integrated reporting, or the corporate practice of combining and communicating financial and non-financial (sustainability) performance in a single set of statements. Here are some highlights:

*France and the European Union will require ESG (environmental, social, and governance) reporting of all publicly-traded companies within the next year, a significant step toward mandated integrated reporting. South Africa, one of the so-called BRIC nations, already requires it.

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