This groundbreaking research confirmed the connection between “non-financial” factors and investment returns. Further, the analysis distinguishes between critical and non-critical factors, and the variance of critical factors across industries. Critical factors, referred to as “key performance indicators,” KPIs for short, are critical for companies to identify and target for investment. How well a firm accomplishes this determines its performance objectively, and relative to competitors.
Corp Sustainability – First Evidence on Materiality – HBS
