New Concepts in The Growing Awareness of Sustainable Investing

image: piggy bankWith capital becoming more available to fund business sustainability programs, executives are positioning their organizations to attract an array of investor interests.  Beyond simple access to capital, many companies are becoming more conscious of the socially responsible investor and the affects recent ‘green’ financial trends might have on their stock performance.

“Companies that actively manage environmental risks – and take advantage of associated opportunities – increasingly seem to outperform those who don’t in the stock market. That could be a very good thing, both for shareholders and the planet.”

This quote from the Newsweek article, How Going Green Can Make You Rich, highlights a growing focus on ‘sustainable investing’ and the valuation of top companies.  Tomorrow’s leaders realize that past performance carries less weight that it may have in the past.  As the article states, “high rankings now indicate which companies are best positioned for the changing world through new offerings as well as efficiencies and cost savings that they find through best-practice supply chain management.”  Examples include:

  • Cut operating costs through operational and supply chain efficiencies
  • Improve throughput with asset and capacity utilization
  • Stabilize base revenue through customer loyalty for sustainable brands
  • Grow revenue new streams by responding to shifting consumer expectations

Business sustainability conversations are no longer a sidebar discussion.  In fact, they are quickly becoming a primary focus in executive boardroom discussions and strategy sessions.  Creating a strong business case for sustainability will not only provide a clear road map to success but will ensure applied sustainability concepts generate shareholder return and thus additional investment interest.

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