February 15, 2008
Better Performing Companies Do Better On CSR
Companies that saw their share price rise by at least 50 percent in the last three years (share price climbers) place a greater importance on social and environmental goals than companies with share prices that have declined by more than 10 percent (share price losers), according to “Doing good: Business and the sustainability challenge” (PDF), new research from the Economist Intelligence Unit.
Social and environmental goals include improving environmental and human rights in supply chains, where 40 percent of share price climbers rank this as an important priority versus 18 percent of share price losers; reducing greenhouse gases (38% to 24%); and developing products which address social and environmental problems (49% to 35%). Share price climbers also put a greater emphasis on social and environmental considerations at board level.
Other key findings from the research include:
- Forty percent of those in our survey believe additional regulation is necessary to tackle social and environmental challenges. Another 50 percent say that voluntary action is generally more effective, but that additional regulation may be required in some areas. But this openness to new rules is combined with the desire for clearer guidance about what government expects from business. Only 10 percent of executives in the survey say more regulation in this area is likely to harm economic growth.
- Communication, then the environment, are top corporate priorities on sustainability. Given a list of 10 specific objectives relating to sustainability, companies placed the highest priority overall on communicating their firm’s sustainability performance to investors and stakeholders (61% selected this as “leading” or “major” priority). Environmental issues took the next three spots overall: improving their environmental footprint through waste reduction and use of recycled materials (57%); improving energy efficiency across global operations (52%); and developing products that address sustainability issues (51%).
- The supply chain is the weakest link. Extending sustainability policy to suppliers is the area where companies gave themselves the worst marks: about one-fifth say their companies have performed poorly in setting stronger supplier standards on both environmental and human rights issues. About the same proportion have only implemented supplier controls in the last five years.
- Sustainability reporting needs more work. Although companies rate their performance on communication highly, efforts regarding formal reporting are less advanced. Only 22 percent of executives say their firms have formal Triple Bottom Line reporting, although a further 40 percent say they will adopt it within five years.
- Sustainability does pay. Most executives (57%) say that the benefits of pursuing sustainable practices outweigh the costs, although eight out of 10 expect any boost to profits to be small. Specifically, sustainable practices can help reduce costs (particularly energy expenditure), open up new markets and improve the company’s reputation. Part of this involves a shift away from defensive behaviour towards more active exploration of the opportunities sustainability can present-so-called “sustainability 2.0″.
The research is based on a global survey of 1,254 senior business executives, including more than 300 CEOs.
Advertisers
Stay competitive through sustainability.
Find out how at the SAP Sustainability Resource Center. >>
Unclear about the EPA's new GHG Rule?
Learn how it could affect your business. >>
EPA mandatory emissions reporting starts Jan 1st
CSA Standards can help your organization get ready for compliance. Find out how. >>
Product Environmental Compliance Best Practices
How to achieve compliance at a significantly lower cost. Download the full report. >>
Recent Daily News [ see all ]
- 11/20/2009
- 11/19/2009
- 11/18/2009
- Ontario May Follow California’s Lead on TV Energy Efficiency
- EPA Is One Step Closer to New Ship Emissions Standards
- European Paper Industry Cuts CO2 Emissions by 42% since 1990
- CDP Launches Water Disclosure Project
- Whirlpool Cuts Water Use by Nearly 22% from 2004 to 2008
- National Grid Again Rejects High Costs of Offshore Wind
- California City’s Green Building Ordinance Applies to Commercial Buildings
- Agilent To Save $3.5M Over 10 Years With Solar
- S. America Takes Most Urgent View of Copenhagen Talks
- Texas, China Wind Partners May Build U.S. Factory to Appease Critical Lawmaker
- Volvo, Mack Engines First to Meet 2010 EPA Emissions Standards
- Around the Web – Nike, Google, Nissan, Bush’s Green Library, WWF
- Fossil Fuel Emissions Rose 29% since 2000
- SEC Charges Four in ‘Green’ Investment Ponzi Scheme
- No Sunny Skies for Two Solar Projects in Texas, California
- Canada Delays GHG Emissions Regs, Russia Ups Emissions Cuts
- News Corp. Taps Hara for Energy Efficiency, Environmental Management
- Rising Sea Levels Would Hit U.S. East Coast Hardest
- Building an Energy-Efficient Data Center Using Virtualization Technology
- Trade Group on EPA Chemical Regs: ‘If Everything is a Priority, Then Nothing is a Priority’
- A/V Equipment Gets New Energy Star Requirements
- By Scaling Back Catalogs, JC Penney to Save 30% on Paper
- Around the Web – Starbucks, EcoFactor, UPS, Brownfields, Eco-Labels
- Subaru Touts Energy & Environmental Initiatives
- U.S., China Partner on Renewable Energy, Energy Efficiency
- Green Buildings Do Double Duty: Reduce Energy Use, Lower Financial Risk
- UK to Ease Rules for On-Site Renewable Energy Installations
- Intel Eyes Wind, Electric Cars
- Nike Tops Annual Climate Action Scores
- Iranian Tanker Firm to Cut Fuel Use 28%
- Corporate Jetsetters Can be Carbon Offsetters
- USPS Energy Use Down 9% From 2005 to 2008
- From Solar Applications to Christmas, LEDs Light the Night
- EPA May Regulate Sulfur Dioxide Emissions on Hourly Basis
- MITEI: Sustainable Energy & Terawatt-Scale Photovoltaics
- Around the Web – Health Care & Energy, Shell, NBC
Charts [ see all ]
Popular Topics
Energy Efficiency
Data Center
Emissions
Facilities
Electricity
Sustainability
Water
Supply Chain
Efficiency
Green Marketing
Strategy & Leadership
Research
Fleets & Transportation
Carbon Finance
Conventional Energy
Clean Energy
Waste & Recycling
Paper & Packaging
Policy & Law
Utilities
Construction
Comments and Discussions
Trade Association on Trade Group on EPA Chemical Regs: ‘If Everything is a Priority, Then Nothing is a Priority’
"Seriously… that..."
Gary Markowitz on Supermarkets Tackle Emissions Reductions, Fuel Efficiency
"Supermarkets waste over 10 percent of their energy through improper..."
peter in ireland on Ontario May Follow California’s Lead on TV Energy Efficiency
"Governor Schwarzenegger is shooting himself in the foot! 1...."
Environmental Leader on S. America Takes Most Urgent View of Copenhagen Talks
"The survey respondents (the PDF report mentions 4,000 respondents in 38..."
Jake on UPS Trying New Hydraulic Hybrid Trucks
"A point of clarification: the Reuters press release referenced herein reports that 20 UPS will purchase..."
Custom Organic Shirts on S. America Takes Most Urgent View of Copenhagen Talks
"90% of North Americans believe it is urgent to get a global climate..."
peter dublin on California City’s Green Building Ordinance Applies to Commercial Buildings
"Why energy efficiebnt regulation on buildings –..."




Join the Discussion