Sustainability Reporting Finally Tied to Higher Corporate Margins
by Francine Hardaway on June 12th, 2008
More and more evidence is coming out that sustainable practices can make companies more profitable in addition to saving the planet. For the first time, one of the “Big Four” accounting firms has tied product stewardship to higher gross margins, higher returns on assets and stronger cash flow, according to a recent report, “The Food, Beverage, and Consumer products Industry - Achieving Superior Financial Performance in a Challenging Economy - 2008,” from GMA and PricewaterhouseCoopers. The analysis was based on 60 large companies, 27 that reported sustainability data and 33 that did not.
The ones that reported sustainability data had the highest gross margins and the greatest return to shareholders, because their operating and investment decisions were geared to reducing waste and optimizing resources.
1 Comment
Add Comment Trackback Comments Feed Send this to a friend