Study: Reporting climate change plans linked to better performance
A report issued by CDP, which offers a platform to report environmental data, found that S&P 500 firms that disclose what they’re doing about climate change make more money than those that don’t.
If exit polls are to be believed, climate change was not a top issue for U.S. voters in Tuesday’s election.
For businesses, however, there’s a benefit to making climate change a priority. That’s according to a new study released by CDP, a nonprofit organization that gives companies a platform for disclosing environmental information.
According to the study, S&P 500 companies that are planning for climate change and publicly disclose those plans have a 67 percent higher return on equity than those that don’t, and they have an 18 percent higher ROE than that of “low-scoring peers.” Beyond that, their rates of volatility are 50 percent lower, and their dividends to shareholders are 21 percent higher.
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