Green companies outperform

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This is such a cool report that I thought I would post it here. Here are two comprehensive reports that illustrate that not only does going green help the environment but that green companies outperform their rivals. According to a recent study of 1,500 companies there is a “strong, positive, and growing correlation between industrial companies’ sustainability in general, and climate change in particular, and their competitiveness and financial performance”. The study known as the Carbon Beta and Equity Performance was performed by Innovest, an investment research firm. As James Murray with GreenBiz.com wrote; “Companies with sophisticated and comprehensive climate change strategies have financially outperformed their competitors over the last three years”. That’s big.

The report predicted that “In the longer term, the out-performance potential will become even greater as the capital markets become more fully sensitized to the financial and competitive consequences of environmental and climate change considerations”. The report also called for more accurate reporting of corporate green initiatives to replace current muddied, inadequate methods. According to Matthew Kiernan, founder and CEO of Innovest, there is more than $40 trillion of institutional investor assets now concerned about climate change. Get the Carbon Beta and Equity Performance report here.

Innovest has also been the lead researcher for the Carbon Disclosure Project (CDP) since its inception five years ago. The CDP analyzes the climate change strategies and performance of the world’s 500 largest public companies, based on their responses to the questions put to the companies’ CEOs, on the investors’ behalf. The CDP is is also available for download from this site.

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