Tuesday, September 18, 2012

Sustainability Offers a Competitive Advantage & Better ROI

According to the 2012 Carbon Disclosure Project (CDP) report, sustainability makes companies more competitive and offers investors better returns. This is driving an increasing number of publicly traded companies to embrace sustainability as part of their long-term strategy to combat climate change. The CDP gathers information for investors about the environmental policies of large companies and the environmental risks they face. The CDP has created an index to recognize the world's best companies called the Carbon Performance Leadership Index (CPLI). The companies that make it onto these lists tend to generate superior returns for investors.

"Our focus is less on payback periods and more on targeting environmental investments to be 'value positive," Deirdre Mahlan, Diageo's CFO, said. "It is insufficient, and even irresponsible, to consider only short term payback when making investment decisions."

"An investment in a basket of stocks of CPLI companies following the publication of CDP's global report each year since 2006 and rebalanced on any annual basis to reflect that year's CDLI would have generated total returns of 67.4 percent, more than double the 31.1 percent return of the Global 500," write the CDP report authors. "Moreover, past CPLI companies generated average total returns of 15.9 percent since 2010, more than double the 6.4 percent return of the Global 500."

The Carbon Disclosure Project’s report concludes: “Those companies that have an awareness of long-term climate-change risks and opportunities reflected in their business strategy will gain strategic advantage over their competitors.”

For more information click here.

© 2012, Richard Matthews. All rights reserved.

Related Posts
Top Ten Companies in the 2012 Carbon Disclosure Project Report
CDP Report Shows a Growing Number of Companies See the Risks Posed by Climate Change
Carbon Disclosure Project Report Underscores German Leadership
The Low Carbon Business Opportunity
Will 2012 be the Best Year Ever For Clean-Tech Investment? 
Renewable Energy in 2012: The Global Economic and Environmental Climate
Investors and Global Sustainability
Renewable Energy Is Our Only Hope
How the West can Capitalize on the Growth of Chinese Cleantech in 2012
Outlook for the Chinese Solar Industry in 2012
India is the World Leader in Cleantech Investment Growth
The EU Debt Crisis did Not Curb the Growth of Renewables in 2011
UK Renewable Energy 2011 Overview
UK Wind Energy
Cuts to UK Solar FiTs Could Prove Deadly
Cuts to UK Wind Power ROCs & FiTs
The Implications of the Expiration of US Renewable Energy Subsidies
Obama 2013 Budget Seeks to Make Renewable Tax Credits Permanent
US Wind Energy Market Review and Forecasts for 2012
US Solar Energy Review and 2012 Forecasts
Geothermal Energy Market Review and Forecasts for 2012
UK Government Investments in Efficiency and Renewable Energy
Investments from Corporate Sustainability is Driving Green Businesses in the UK
Will 2012 be the Best Year Ever For Clean-Tech Investment?
Investments from Corporate Sustainability is Driving Green Businesses in the UK
UK Government Investments in Efficiency and Renewable Energy
Growing US Corporate Investments are Driving Cleantech
Greener Vehicles Growing Cleantech and Providing Green Jobs
Cleantech Partnerships and Collaborations
California and Other US Leaders in Cleantech Investments
Leading US Cleantech Investment Sectors in 2011 Q3 and Q4
VC Investment in US Cleantech in 2011
US Regains Lead from China as Clean Energy Leader
Investing in CleanTech: Efficiency Upgrades and Renewable Energy

No comments: