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Companies As Climate Change Agents Winning On Business Field

Companies As Climate Change Agents Winning On Business Field

Fifteen hundred companies are beating rivals by being strategic in changing climate change.

October 30, 2007 —

Investment research company Innovest just released a report that businesses with a philosophy and practice toward acting on climate change are outperforming their corporate climate-okay rivals. Over the past three years 1500 companies working with sophisticated measures in sustainability and conservation are coming out on top in the enormously competitive business and investment sphere.

Innovest’s investigation—called The Carbon Beta and Equity Performance study—determined a “strong, positive and growing correlation between industrial companies’ sustainability in general, and climate change in particular, and their competitiveness and financial performance."

Investors in green companies are heartened by the study’s observation that such investments are proving to have premium returns—in light of eco-aware business models that are working in times of tighter regulation. "In the longer term, the out-performance potential will become even greater as the capital markets become more fully sensitized to the financial and competitive consequences of environmental and climate change considerations," Innovest’s prognosticators predicted.

The founder and head of Innovest, Matthew Kierman, says there is over $40 trillion in institutional investments geared toward climate change. This enormous funding has highlighted a weak area in company environmental actions being assessed. Investors look for how well businesses are doing in certain sectors in terms of the lowest “climate risk.” Solid, factual, transparent reporting from companies has been difficult at times to come by. Yet, this Innovest study strongly observes that investor analysts are demanding much better and traditional reporting from companies looking to wear the climate change agent title.

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