The stock prices of global “greenest” or most sustainable companies have been consistently beating the market.
The 187 Carbon Disclosure Project “A List” companies’ stock prices as a group outperformed the Bloomberg World Index by 9.6% in the four year period from 2010.
The A-Listers’ stocks went up 37.53% while the Bloomberg World Index went up 34.24% in the same period.
The results were even more dramatic when a similar analyis was done over the period 2005 to 2011. “Businesses who lead in carbon performance delivered twice the financial return compared to their peers. Companies in the Carbon Disclosure Leadership Index (CDLI) and Carbon Performance Leadership Index (CPLI) delivered approximately double the total return of Global 500 companies between January 2005 and May 2011.”
Quotes on the CDP 2014 Report:
- Bloomberg: “If acting on climate change hurts the economy, as the American Coal Council’s talking points suggest, it’s a lesson lost on some of the world’s most successful companies. Stocks of companies that take climate change seriously beat the wider market by almost 10 percent …”
- Forbes: “True leaders in the field are using their sustainability information to become stronger businesses and to make better decisions based on what they have learned. They understand that analysing, reporting and benchmarking the data they have gathered can help to boost revenues, strengthen brands, cut costs and manage risks.”
- CNBC: “It’s the companies that are not yet able to report that are telling their investors ‘we’re not prepared for this issue and we may be exposed to this risk and we’re probably not gaining on the opportunity side.’”