Companies Cutting Carbon Outperform

Are companies that have implemented carbon reducing practices performing better financially?  The recent release of the CDP Global 500 report by the Carbon Disclosure Project answers in the affirmative.  In fact, this report has revealed that the companies working to decrease their carbon emissions are outperforming those that have not begun this change.  These same companies are said to be performing better in the stock market as well.

The CDP Global 500 evaluates the carbon reduction strategies being implemented by the world’s largest public corporations. Philips Electronics, BMW, Honda, Bayer, Tesco, and Sony are some of the notable corporations that ranked high in these standards.   The survey states that nearly 60% of the companies that have invested in reducing carbon emissions have experienced a payback in three years or less.  European companies by far have had the best performance overall in the recent ranking, and this is likely because of the low carbon policies enacted in Europe.

Companies are beginning to realize that by being environmentally friendly, they are able to cut costs, improve their reputations, and avoid pollution taxes as well as high insurance premiums.  Large corporations taking these steps are realizing the competitive advantage of doing so. 

In an effort to decrease its carbon footprint and negative impact on the environment, Puma, a German-based sportswear company, has published a report detailing the combined cost of carbon it has emitted and water it has used.  Puma reports that these figures will help them and their suppliers construct a “resilient and sustainable business model”.  Many major corporations are looking to follow the lead of Puma, in hopes that they too can enact practices that result in less pollution and less harm to the environment. 

Hopefully other companies across the globe will see the success of these companies that have decided to “Go Green” and follow in their footsteps.  This will not only improve their financial gains, but also create a cleaner environment that will be sustainable for future generations.