A recent two-year study adds to the growing literature that shows a positive relationship between environmental performance and company shareholder value. Results indicate that going beyond compliance and developing
environmental products enhance earnings per share and profitability. Deutsche Bank, Electrolux, Gerling, ICI,
Monsanto, Unilever, and Volvo participated in the study as part of a consortium researching the topic.
The authors of the resulting report note that, on the positive side, companies that emphasize environmental
performance are more likely to win contracts and investor approval. On the other hand, institutional investors
are increasingly wary of companies that ignore or downplay environmental concerns.
Participants agree the importance of sustainability will only increase, and may be the “number one issue 15-20
years from now, if not sooner.” Respondents rated “transparency” as a crucial concept in sustainability efforts.
For a copy of “Sustainable Strategies for Value Creation,” contact The Performance Group
FROM The Green Business Letter
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