Follow this blog:
RSS

Legitimate sustainability strategy could be rewarded by shareholders

By | June 12, 2009, 10:56 AM PDT

According to a “Green Winners” analysis by A.T. Kearney, companies that have made a legitimate, long-term commitment to — that is, the practice of using human and natural resources today with an eye to making sure they thrive into the future — have been faring better than their tactically focused peer groups in 16 out of 18 industries. At least when it comes to the financial markets.

Indeed, the consulting company found that these companies had a stock market performance differential of 10 percent over a three-month research period; the gap widened to 15 percent over a six-month period. A.T. Kearney picked the companies to examine based on their inclusion in either the Dow Jones Sustainability Index or the Goldman Sachs SUSTAIN focus list.

The only exceptions to this trend came from the construction and materials sector, and the personal and household goods sector.

Mind you, there are plenty of companies that describe themselves as sustainable, holding up their sustainability brochures and reports as hard proof. Please, please, please, DON’T ever PRINT a sustainability report on paper. Or, if you must, print on demand.

But I digress.

You can download the entire A.T. Kearney commentary on the link between sustainability and market performance here.

According to the A.T. Kearney researchers, what distinguishes “true” sustainability from tactical lip service to the concept is the following:

  • Long-term planning that is at least five years to 10 years or longer into the future
  • Contributions from outside the company’s inner sanctum from policy experts, scientists, business partners — anyone who can provide value insight and criticism
  • Top-down support
  • A strong corporate governance framework
  • Healthy risk management policies that identify potential corporate liabilities that are related to environmental factors
  • And, a history that proves its long-standing commitment. After all, the Dow Jones Sustainability Index was started a full decade again, long before sustainability was such a sexy headline.

Which is not to say that you should let having no past stop you. But be methodical and thoughtful, and remember that sustainability is really about the triple bottom line governed by Economics, Ecosystems and Ecology.

Start your week smarter with our weekly e-mail newsletter. It's your cheat sheet for good ideas. Get it.

Heather Clancy

About Heather Clancy

Heather Clancy is a contributing editor for SmartPlanet.

Heather Clancy

Heather Clancy

Contributing Editor

Heather Clancy has written for United Press International, ZDNet, Entrepreneur, Fortune Small Business, the International Herald Tribune and the New York Times. She holds a degree from McGill University. She is based in New Jersey.

Follow her on Twitter.

Heather Clancy

Heather Clancy

I am fascinated about how businesses of all sizes can transform their operations through technology -- not just to make themselves more efficient, but to rise above their competitors. That's the theme for my two ZDNet blogs, Small Business Matters and Next-Gen Partner. For SmartPlanet, I'm focused on profiling inspirational and controversial business leaders who have great leadership lessons to share. I also write regularly and passionately about corporate social responsibility and sustainability issues for GreenBiz.com.

Occasionally, I will pop up at an industry conference in some sort of speaking capacity. In cases where an engagement involves a sponsor that may be covered in this blog, that fact will be disclosed in coverage as appropriate.

My corporate writing work usually consists of crafting research white papers about some aspect of technology or moderating Webcasts. In the event that my commentary (in written, audio or video form) mentions a company for which I have provided consulting advice, I will disclose that fact. However, there is no connection between these projects and topics that I cover in my blogs.

She writes for SmartPlanet and is not an employee of CBS.

If you liked this, don't miss...
1
Comments

Join the conversation!

Follow via:
RSS
+1 Vote
+ -
otimate
We have been living in Montana for the past 5 years and I am not supri sexy shop to find it #3 on the "worst" list. Considering a sexshop move to Idaho to escapthe high cost of living a low income in MT. There may not be a sales tax here but they get you if you own property!

Where does Idaho rank? We have been living in Montana for the past 5 years and I am not supri sexy shop to find it #3 on the "worst" list. Considering a sexshopmove to Idaho to escapthe high cost of living a low income in MT. There may not be a sales tax here but they get you if you own property!
Posted by filhomarques
21st Jul 2011
Join the conversation
Formatting +
BB Codes - Note: HTML is not supported in forums
  • [b] Bold [/b]
  • [i] Italic [/i]
  • [u] Underline [/u]
  • [s] Strikethrough [/s]
  • [q] "Quote" [/q]
  • [ol][*] 1. Ordered List [/ol]
  • [ul][*] · Unordered List [/ul]
  • [pre] Preformat [/pre]
  • [quote] "Blockquote" [/quote]

Join the SmartPlanet community and join the conversation! Signing up is fast and free. Don't wait -- we want to hear your opinion!