A study recently published by A.T. Kearney revealed that even during the current economic slowdown, companies that show a “true” commitment to sustainability appear to outperform their industry peers in the financial markets.
By an average of about $650 million in market capitalization per company.
So what exactly is a “true” commitment to sustainability?
According to the A.T. Kearney study, this included, A) a focus on long-term health rather than short-term gains; B) strong corporate governance; C) sound risk management practices; and, D) a history of investing in green innovations. This list could easily be expanded upon, but I’ll let it rest for now in the interest of brevity.
The study concluded that, “The most sustainability-focused companies may well emerge from the current crisis stronger than ever—recognized by investors who appreciate the true long-term value of sustainability.”
Okay, okay—this all sounds really good. But what does it actually mean and how can you get your company to be one of those corporate winners?
Sustainability is all about making our everyday practices socially, environmentally and economically responsible so that we can meet our needs today without compromising the ability of future generations to meet their needs.
Sustainability is easy to say and hard to do. But the companies that actually roll up their sleeves and rethink their business models, operations, and products and services ultimately reap the benefits.
Here’s how: