Corporate sustainability is an early indicator for future
business success. It is a holistic approach that creates
long term shareholder value by embracing opportunities
and managing risks.

Research by leading institutes, such as SAM Sustainable Asset
Management, which manages the Dow Jones Sustainability
Indices, has demonstrated that corporations with a higher corporate
sustainability "score" tend to outperform their peers over the
medium to long term.

Sustainable Equity Value has taken best practices developed through
working with larger companies, and adapted them to the needs and
characteristics of smaller firms. It has also applied its team's long
experience in consultancy and management to add a strong focus on
strategy and operations. We don't use questionnaires. We work directly
with our clients, reviewing documentation and systems, interviewing
shareholders, managers and employees, clients and suppliers.
Basically, we evaluate the company "from the inside"

This approach to assessing corporate sustainability, with minor variations, is also
used by SEV to help larger organisations improve their corporate sustainability.

SEV uses the following dimensions when assessing and improving corporate sustainability:

Governance

Effective and transparent governance, sustained by shared values, and by clear risk and crisis management capabilities,
improves a firm's ability to take the right decisions, and makes it more attractive to potential investors.

Economic

Firms that have a clear strategy and compelling value proposition, with well-aligned and mature business processes, are
better able to adapt and innovate in response to market opportunities, leading to sustainable superior performance.

Environmental

Operational eco-efficiency and an awareness of the changing laws and regulations can reduce operating costs, decrease
risks and create revenues through new business opportunities.

Stakeholders

Knowing who your stakeholders are, and having an effective strategy to engage them and improve their ability to support
your strategy is critical for a firm's long-term performance.
Stakeholders can be roughly divided into two categories:

• Internal: Application of human capital development practices, and the ability to attract and retain the right talent, can
  determine the difference between success and failure of a firm's business strategy.
• External: Firms that manage their client and supplier relations in a consistent and responsive manner are more
  successful than their peers. Good corporate citizenship improves a firm's ability to "listen" to the market and
  enhances its image.

Compared to large quoted firms, smaller and medium sized firms have as much, often more, to gain from appropriately
applying corporate sustainability principles. We also believe that the positive social and economic impact of doing so
is greater over time.