The principal problems associated with the concept of strategic corporate management is to identify the financial and non-financial value drivers. In Value Based Management theory the main focus was on financial value drivers but today there is a serious necessity of intangible resources...

We examine the effects of incorporating a potential tax on carbon emissions into a value investment strategy. We show that in a portfolio optimization problem, a carbon tax at the stock level is mathematically equivalent to a carbon constraint at the portfolio level. Using this insight we derive...