Companies that Invest in Sustainability Do Better Financially

Read the full post from Harvard Business Review.

It’s a common misperception that responsible or sustainable investments are all in the hug yourself, warm feeling, good intention category, the inevitable consequence of which is diminished investment return.

Nothing could be further from the truth.

In the past decade, investor demand has increased transparency and communication, creating a large and growing pool of data on corporate sustainability. With this, objective decision-making can happen. Analysis of the data shows two important relationships:

Resource efficient companies — those that use less energy and water and create less waste in generating a unit of revenue — tend to produce higher investment returns than their less resource-efficient rivals.

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