A.T. Kearney: Sustainable companies outperform peers

Oil and gas companies committed to corporate sustainability outperformed their industry peers financially during the economic slowdown, A.T. Kearney Inc. said in a recent report.

The management consulting firm examined a total of 99 companies across various industries. A.T. Kearney’s report is entitled “Green Winners: The Performance of Sustainability-focused Companies in the Financial Crisis.”

The study defined sustainability practices as protecting the environment and promoting social well-being while achieving shareholder value. Sustainability companies were identified based upon the Dow Jones Sustainability Index and the Goldman Sachs Sustain Focus List.

Researchers examined 3 months (September to November 2008) and 6 months (May to November 2008). Performance differentials were calculated in each industry by comparing the percentage point difference of average sustainability companies’ indexed performance to the market indexed performance.

Over the 3-month period, the overall performance differential for index stock prices across all industries came to 10% and the 6-month differential came to 15%. For oil and gas companies, the 3-month performance differential was 12% and the 6-month performance differential was 15%, A.T. Kearney said.

“If sustainability is transforming the business, it makes sense to maintain this commitment and, where possible, even consider increasing investments to improve future positioning,” the report said. “The most sustainability-focused companies may well emerge from the current crisis stronger than ever—recognized by investors who appreciate the true long-term value of sustainability.”