Page 4 - Green Builder July-August 2017 Issue

EDITOR’S NOTE

By Matt Power
The Inside Scoop Editor-in-Chief

Sustaining a Triple Bottom Line

Companies that integrate economics with environmental and social

concerns also tend to outperform their less-savvy competitors.

T’S NOT FOR NOTHING THAT AMAZON bet are not good enough for many shareholders, and
big on acquiring Whole Foods in June. Sure, they’re leveraging CEOs to act more responsibly.
the food giant was floundering a bit, as other Fortunately, research shows that “doing good”
retailers adopted the same “crunchy” product usually leads to “doing well.” EL notes that “A pre-
Iofferings at lower prices. But in the upscale ponderance of the studies performed show a posi-
mental and physical space, Whole Foods still had a tive correlation between sustainability efforts and
towering presence. In other words, Amazon bought shareholder value.” A study by the nonprofit CDP
more than just a grocery chain. They bought access in 2014, for example, found that S&P 500 compa-
to a certain kind of buyer, via a company with its nies with a clear strategy for addressing climate
“triple bottom line” already established. Amazon change earned an 18 percent higher return on in-
paid $13.4 billion. vestment than companies that did not.
According to Environmental Leader, “Companies But the numbers in 2017 may be even better:
that focus on the so-called triple bottom line— Fast Company reports that 93 percent of CEOs
economics, environment and social—are the ones that consistently do globally now think sustainability is important. The publication
well by all standards. Those using such guideposts are outperforming notes that a study by the International Finance Corporation
other broader indices, and they are also demonstrating that they revealed that the Dow Jones Sustainability Index “performed an
are living their missions and ingraining their brands among their average of 36.1 percent better than the traditional Dow Jones Index
customers.” over a period of five years.”
EL goes on to note that even the largest companies, which have The forces driving corporate change are coming from a new
traditionally focused on making shareholders happy, have evolved generation with new attitudes. Even traditional investment firms such
into much more complex organizations. Simple bottom line decisions as Goldman Sachs are embracing greener, more socially conscious
benchmarks. Why? According to Fast Company, “research at both
the corporate and university levels suggests that this next generation
of employees and consumers have specific needs at work that are
dramatically different from previous generations. High among these
is a desire to align personal and corporate values.”
There is, of course, a bigger discussion that needs to happen, about
whether mega-corporations can ever achieve the necessary level of
sustainability. Companies such as Amazon, with their huge shipping
footprint, will need to show dramatic changes before they can claim
triple bottom line benefits.
CREDIT: INGERSOLL RAND this annual congratulatory issue, have already made huge leaps
Some building companies—notably the Eco-Leaders featured in
forward toward this trifecta of values and profitability. They’re
demonstrating that taking a leadership position on climate change,

Taking the lead. Ingersoll Rand’s efforts to combat global for example, can also drive their brand clout and sales. Other
less-savvy companies should take note. The future is sustainable.
warming, including investing $500 million in greenhouse gas-
reducing product research through 2022, make it a leader in Ignore it and you’ll not only lose customers, you’ll leave money
environmental protection. on the table. GB
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