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Sustainability Pays: The Value Proposition for Business
By Tyler Collins

Natural Capitalism Solutions has released an annotated list of studies conducted by various management-consulting firms, academic institutions, and other organizations that prove the business case for corporate sustainability.

The document makes the assertion that as climate change, natural resource constraints, and other factors cause unprecedented changes in business, leading companies will increasingly evaluate their performance using an “integrated bottom line.” This new measurement system incorporates the firm’s environmental and social impacts, creating a more holistic approach to financial performance evaluation and a better way to focus on competitive advantage.

Through analysis of forty-three reports, “Sustainability Pays: Studies That Prove the Case for Sustainability” concludes that businesses can improve profitability by adopting sustainable practices in the areas of: Natural Resource, Energy, and Operational Efficiency; Human Resources Management; Financial Operation; Marketing and Communication; and Collaboration with NGOs and Government.

The compendium pulls studies from companies and institutions such as Goldman Sachs, Environmental Defense Fund, Accenture, Economist Intelligence Unit, Harvard Business Review, and the U.S. Department of Energy.

Natural Capitalism Solutions is a non-profit organization founded by Hunter Lovins, an original founder of the Rocky Mountain Institute, which seeks to educate businesses and organizations about the principles of sustainability. They develop innovative tools and strategies for companies, communities, and governments to create and enhance natural and human capital through sustainability and efficiency.

Mention of specific companies or securities should not be considered a recommendation to buy or sell that security. Past performance is never a guarantee of future results.

Posted: December 6, 2012