The Cost of Sustainability Capital and the Creation of Sustainable Value by Companies

We develop and apply a valuation methodology to calculate the cost of sustainability capital, and, eventually, sustainable value creation of companies. Sustainable development posits that decisions must take into account all forms of capital rather than just economic capital. We develop a methodology that allows calculation of the costs that are associated with the use of different forms of capital. Our methodology borrows the idea from financial economics that the return on capital has to cover the cost of capital. Capital costs are determined as opportunity costs, that is, the forgone returns that would have been created by alternative investments. We apply and extend the logic of opportunity costs to the valuation not only of economic capital but also of other forms of capital. This allows (a) integrated analysis of use of different forms of capital based on a value-based aggregation of different forms of capital, (b) determination of the opportunity cost of a bundle of different forms of capital used in a company, called cost of sustainability capital, (c) calculation of sustainability efficiency of companies, and (d) calculation of sustainable value creation, that is, the value above the cost of sustainability capital. By expanding the well-established logic of the valuation of economic capital in financial markets to cover other forms of capital, we provide a methodology that allows determination of the most efficient allocation of sustainability capital for sustainable value creation in companies. We demonstrate the practicability of the methodology by the valuation of the sustainability performance of British Petroleum (BP).

Educating for peace? Citizenship education in Quebec and Northern Ireland

The article explores particularities of citizenship education in divided societies by comparing key concepts and theoretical frameworks underpinning citizenship education curricula in two divided societies, one of which could be described as relatively peaceful and the other as slowly emerging from political violence. A document analysis of the citizenship education curricula in both societies is conducted to compare differences and commonalities of attempts to promote citizenship and peaceful community relations. Conceptualizations of and interrelationships between citizenship, human rights, and peace education are explored in theory and curricular documents in both societies. The discussion reflects on the value of citizenship education in the context of community divisions and its possible impact on sustainable peace in divided societies.