For all the talk about sustainability these days, it’s a concept that continues to be frequently maligned or misunderstood. What exactly is it? Why does it matter? And how can you turn it into a differentiator and profit generator?
Baseline assumption: money talks louder than good intentions.
OK, I have to admit, until six months ago, I rolled my eyes when I heard the term sustainability in the context of business. Sure, I get the point of “green construction” and recycling. But banking has a specific role to play in the economy. Your responsibility is to keep the money moving. Layering on a do-gooder ethos—and working to make the world a better place—is only a distraction from maximizing shareholder value. Isn’t it?
Apparently not. Academic literature and research now abounds indicating that companies dedicated to sustainability outperform their rivals.
And so do their share prices.continue reading »