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What's Happening
Companies that make their environmental practices public reap serious economic benefits, according to a new report from GMA and PricewaterhouseCoopers (EnvironmentalLeader.com 6.11.08).
According to the report, large companies who report their impact on Mother Earth experience higher gross margins and return on sales, higher return on assets, and stronger cash flow and rising shareholder return as compared with similar-sized companies who don't.
It remains unclear whether the economic benefits are the logical outcome of leaner operations and sustainable practices lowering company costs or stem from consumers allying with companies known for their environmental awareness.
WHAT THIS MEANS TO BUSINESS
Transparency is at the core of the green movement. By going public with their environmental impact, companies earn the trust of an increasingly environmentally conscious consumer base.
With energy costs on the rise, going green is more than just good PR, it's good for the bottom-line.
RESOURCES
GMA
PriceWaterhouseCoopers
SEE ALSO
Observations
Companies grow departments for green leaders
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