2Sustain

Earlier this week, A. T. Kearney, Inc. released a study titled “Green Winners: The Performance of Sustainability-Focused Companies in the Financial Crisis.” If you’re still of the mindset that there is a fundamental conflict between sustainability and the bottom line, I encourage you to read this analysis. It shows that even in this tough economic climate, companies with a commitment to sustainability tend to outperform their peers.

Researchers at A.T. Kearney looked at 99 companies who have a strong commitment to sustainability (as defined by the Dow Jones Sustainability Index and/or the Goldman Sachs Sustain Focus List) and compared their performance with industry averages.

Here are a few of the study’s intriguing highlights:

• In 16 out of the 18 industries studied, companies committed to sustainability outperformed industry averages by 15% over the six months from May through November 2008.

• The companies committed to sustainability tended to focus on long-term health, rather than short-term gains.

• These companies were also characterized by strong corporate governance.

• In addition, companies committed to sustainability develop and execute sound risk management practices.

• Companies with a history in green innovation reaped the most benefits.

“Our study indicates that the market rewards specific companies,” says Dr. Daniel Mahler, author of the study. “We find common characteristics among the leading companies that show that sustainability goes far beyond the narrow definition of being environmentally friendly.”