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"Sustainability Strategies" Enhance Stock Performance, Study Shows

 2005-01-19

A recent analysis of the stock market performance of members of the World Business Council for Sustainable Development (WBCSD), conducted by Kommunalkredit Dexia Asset Management, shows that "firms engaging in sustainable development, with a few exceptions, show in all market segments a better performance than the respective benchmark indices. The results confirm the outperformance of sustainable enterprises in comparison with the total stock market. Therefore, these firms should be clearly over-weighted in security portfolios".

The analysis covers 1-year, 3-year and 5-year time periods. Overall, the 141 companies of the WBCSD, many of them Global Compact participants, registered the following returns, compared with a general global market index:

  • 1-Year: 13.5% vs. 9.2%
  • 3-Year: 20.7% vs. -7.8%
  • 5-Year: 24.5% vs. -19.6%

The analysis also includes regional breakouts.

Please contact Gavin Power (powerg@un.org) for more information.

Please click here for the full report.