The research is in, companies who have had a focus on sustainability during the global financial crisis have been outperforming their peers according to a recent study by A.T. Kearney- Green Winners: The Performance of Sustainability-focused Companies in the Financial Crisis.
“..companies looking for ways to survive in the current economic climate should think twice before cutting back on sustainable initiatives. In 16 out of 18 industries companies with a commitment to sustainability were the clear leaders in the financial markets.
These findings ..,
which looked at 99 companies identified as having a strong commitment to sustainability and compared their performance with industry averages. The 99 companies were defined by the Sustainability Index and the Goldman Sachs Sustain Focus List.
The analysis found that in 16 of the 18 industries studied, companies committed to sustainability outperformed industry averages by 15% over the six months from May through November 2008. From a market capitalization perspective, this superior performance averages out to $650 million in protected market capitalization per company.
“Our study indicates that the market rewards specific companies,” said Dr. Daniel Mahler, author of the study. “We find common characteristics among the leading companies that show that sustainability goes far beyond the narrow definition of being environmentally friendly.”
Comments on this entry are closed.