Invest In Sustainability
Invest In Sustainability
By: Ron Benjamin
According to the Merriam-Webster dictionary, the word sustainable is defined as:
- able to be used without being completely used up or destroyed
- involving methods that do not completely use up or destroy natural resources
- able to last or continue for a long time
Of course, it follows that any business that is committed to being sustainable is committed to using practices that conserve natural resources and that are of a longer term view. In this way, business organizations and societal organizations can be in harmony when true sustainability is defined as their common goal.
This focus on true sustainability begs the question as to whether or not business organizations with a commitment to true sustainability are seen more favorably by society in general and whether or not these business organizations perform more successfully in the marketplace. Recently the MIT Sloan Management Review and the Boston Consulting Group conducted a survey in which investors were asked whether or not a company’s sustainability performance is materially important to their investment decisions. The results were stunning.
Almost 3 in 4 of the respondents, all of whom were professional investors, agreed that “to a great extent” (43%) or “to a moderate extent” (30%) a company’s “good sustainability performance is materially important for investors when making investment decisions.” And while this 73% saw it as greatly or moderately important, only 3% felt it was of no importance.
Thus, the survey affirmed other research connecting a commitment to good corporate sustainability with effective management of environmental, social, governance, risks and opportunities. In a nutshell, it is viewed to be an indicator that the company is thinking seriously about the long term.
The converse is also true. Morningstar reports “evidence of a connection between longer-term investing and sustainability performance” in Morningstar’s Sustainability Ratings of the mutual funds. Thus, a commitment to corporate sustainability performance is linked to the long-term financial performance of these mutual funds.
We at GreenEarth have built our company on the vision and the process of providing the most sustainable way to clean clothes. Just like mutual fund investors, we believe dry cleaning customers who seek the most sustainable solutions in their lives currently see and will continue to see GreenEarth Cleaning as the most favorable way to care for their wardrobe investment.