• Nuno Moreira da Cruz

The link Sustainability strategy to bottom line


November - Edition #8

For Corporations to definitely embrace sustainable strategies, one key aspect is to have evidence of the link between those strategies and positive financial results. The journey has just started but a growing number of studies seem to prove the case. You will find below links to three recent studies from different sources:

a) Survey made by Nielsen where three different industries  are covered: coffee, chocolate and bath products. Key message: "No matter what, sustainability is no longer a niche play: your bottom line and brand growth depend on it."

b) Study from BCG, "Total Societal Impact". In a way, a proposal for a new metric (TSI), designed to validate and enhance in the long run, the one we have all grown up with: TSI (Total Shareholder Value). Key message: "We found clear links between non-financial and financial performance”

c) Study from Harvard Business School on "Corporate Sustainability: A strategy?" Key message: "Our exploratory results confirm that the adoption of strategic sustainability practices is significantly and positively associated with both return on capital and market valuation multiples

Hope they inspire you. What sort of research question would you raise in your Company to try and prove your business case?

Nuno Moreira da Cruz

Center for Responsible Business and Leadership

Executive Director and Affiliate Professor

Católica-Lisbon School of Business & Economics