Report: Green companies do better
TEXT OF STORY
Steve Chiotakis: Finally, do greener and more socially responsible companies out-perform their peers? That’s what a new study out today seems to suggest. From the Marketplace Sustainability Desk, here’s Sarah Gardner.
Sarah Gardner: The global consulting firm A.T. Kearney admits it’s the first time they’ve done this sort of comparison, so they’re not prepared to make any grand conclusions. But here’s what they found.
They looked at 99 companies listed on “sustainability” stock indices. In this case, sustainability includes everything from corporate energy conservation to community work. Then, they compared those companies’ stock market performances with their industry peers.
Michael Wise: We found over the six-month period that sustainable companies in terms of stock price out-performed their peers that are considered less sustainable by about 15 percent.
Out-performers included Toyota, BASF and Walt Disney, among others. A.T. Kearney’s Michael Wise theorizes that more “sustainable” companies are successful because they focus on long-term strategy rather than short-term profits and have strong programs to manage risk.
Well, maybe most of them. Struggling Citigroup was among the 11 banks deemed sustainable.
I’m Sarah Gardner for Marketplace.
Stories You Might Like
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
