Tuesday, November 30, 2010

Do investors really care about sustainability?

According to Peter Lacy of Bloomberg Business week – they don’t. Good article found at http://www.businessweek.com/managing/content/nov2010/ca2010118_925615.htm but I think it misses the point. He’s right that investors don’t really care – that is until something goes wrong and there is a massive recall of product or a shipment is denied at Christmas because it is not “REACH” compliant. I think we are entering the age of verification and assurance of sustainability information. Investors just want to know their money is safe. Sure there are a few out there that actually care about the planet and will go to great lengths to only support companies that align with their values but most don’t really care. KPMG, Deloitte and others are now offering “stamps” on sustainability areas for companies. It’s kind of like saying “my dad looked into this and It’s OK”. Investors care about loosing their money – and oh – making money. Turns out sustainability initiatives make money. Finding efficiencies in energy and production are tried and true areas for improving margin, it’s just the last mile of that plan. Find the cash and reduce the risk – that will keep them investing. Sustainability software can help with that.

2 comments:

  1. This will change over time as individual investors realize that without sustainability there is no economy. though we have ignored externalities when calculating economic throughputs one can't ignore the planets contribution of $33 trillion /per day forever. *Figures from 1997 Stanford project.
    No one was interested in recycling when the blue boxes came out either. Social change is emotional, not logical.

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  2. Thank you for the content and comment Dawna.

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