A new report released today by Sustainable Insight Capital Management (SICM), an investment management firm that integrates environmental, social and governance factors into its investment process, and CDP highlights the relationship between business leadership on climate action and financial profitability.
A higher return on equity: Relationship between business leadership on climate change and financial profitability
September 23 2014: A new report released by CDP today presents evidence that S&P 500 industry leaders that are actively managing and planning for climate-change:
- Generate superior profitability: 18% higher ROE than peers and 67% higher than companies who do not disclose on climate change;
- Ensure more stability: 50% lower volatility of earnings over the past decade than low-ranking peers; and
- Grow dividends to shareholders: 21% stronger than low-ranking peers.
The report tracks industry-leaders over the last three years against their financial performance. The analysis revealed that those who lead on climate disclosure and performance have generated higher profitability (ROE).
Since its founding by Will Thomson and Chip Russell in June 2016, the Massif Capital Real Asset Strategy ha