Sustainable companies win in current economic climate

A new study published by A.T. Kearney, Inc. shows that companies who are committed to sustainable practices are performing well and are often the leaders in their industry. According to an article about the report, this is true in 16 of 18 industries surveyed. The sustainable companies, determined by the Sustainability Index and the Goldman Sachs Sustain Focus list, earn an average of 15% more than their same-industry competitors.

The study also suggested that companies with a sustainable focus tend to have a better focus when it comes to long term planning, as well as "strong corporate governance" and risk management. In other words, it may be that strong companies tend to embrace sustainability as a practice, rather than sustainable companies tend to perform well financially.

Regardless of the order of cause and effect, the fact that companies focused on sustainability are performing better than their peers is great news. Fiscal responsibility has long been a part of sustainable movement--it really is cheaper to use CFLs in place of standard light bulbs--but it has always been spoken of as an aside, or a fringe benefit.

This news may help people see that the term sustainability is not synonymous with environmentalism. Rather, sustainability confers a long-term plan. It is managing resources--finances included--such that they will still be available for use five, ten, twenty and one hundred years down the road. Viewing sustainability as an effective form of risk management or long-term planning may help business leaders who were struggling with the language of sustainability make the transition.