A new report has found that utilities with the best environmental practices have higher values on the stock market. The Great Lakes Radio Consortium’s Karen Kelly reports:
Transcript
A new report has found that utilities with the best environmental practices have higher values on
the stock market. The Great Lakes Radio Consortium’s Karen Kelly reports:
The New York-based financial research firm Innovest found a correlation between sound
environmental management and strong financial performance among companies.
The firm compared 26 utilities on environmental factors such as toxic releases.
Researcher Carla Tabossi says they found the companies with the highest environmental scores
outperformed others on the market.
“The environmental quality of corporations turns out to be a very good proxy for the overall
management quality of firms, which happens to be the primary determinant of stock market
performance.”
Tabossi has also found that a growing number of asset managers are considering environmental
issues when constructing investment portfolios.
For the Great Lakes Radio Consortium, I’m Karen Kelly.