In an update of the 2003 study "Sustainable Development Pays Off" , Kommunalkredit Dexia, an Austrian Asset Management company, confirms that WBCSD members enjoy high investor confidence.
The study ( 368 kb) analyzed the performance of the 141 WBCSD members listed on stock exchanges around the world. The result was a clear outperformance of an equal-weight WBCSD member portfolio over the corresponding market indices, particularly on a long-term basis.
That firms engaging in sustainable development show a better performance in all market segments than the respective benchmark indices with a few exceptions has already been established. Interestingly, however, the study reveals that the lead role observed in companies with sustainable orientation seems to become more pronounced over time.
In order to succeed consistently in the future, managing ecological and social issues will become a prerequisite for companies to be able to deal with new market conditions. The study shows that this picture holds true regardless of the location of production and distribution of individual enterprises.
The active effort around lasting development lets enterprises become more competitive, shock resistant and flexible in a rapidly changing environment. It also increases their popularity among customers and highly qualified employees, states the study when describing the philosophy behind sustainable development.
Since the results of the latest study continues to support the findings of the 2003 report – that sustainable enterprises are generating a superior performance compared to the total stock market – Kommunalkredit Dexia clearly recommends investors to overweight such firms in their security portfolios.