here are some recommendations for measuring firm-level sustainable financing or financial sustainability:
Use Environmental, Social, and Governance (ESG) metrics: These metrics provide a holistic understanding of a company's impact on the environment, society, and corporate governance issues. By using ESG metrics, you can assess the company's financial sustainability and its alignment with the United Nations Sustainable Development Goals.
Explore the company's carbon footprint: Analyzing a company's carbon footprint will provide insight into their environmental impact. Carbon footprint metrics will help identify the company's energy usage, greenhouse gas emissions, and pollution levels.
Perform a financial analysis: Along with ESG metrics, it's essential to analyze a firm's financial statements to determine its level of financial sustainability. This analysis includes examining the company's profitability, liquidity, and solvency ratios.
Review disclosure reports: Company disclosure reports provide information on corporate sustainability initiatives, which is essential to determine a firm's level of sustainability and financial sustainability.
Look for certification or rating: Certifications such as B-Corp, LEED, or ISO 14001 provide third-party verification of a company's sustainable practices, lending credibility to its financial sustainability.