Investors reward environmental performance more than disclosures
“Investors value what companies do for the environment more than what they say."
Researchers have found a clear link between companies’ environmental performance and their financial performance, whereas disclosures alone are less predictive of profitability.
Upon analysing financial and environmental data from 8,547 companies across 34 countries spanning 2015 to 2022, Researchers from Japan’s Kyushu University concluded that superior environmental performance is positively related to better financial performance – including higher return on assets and lower cost of capital.
