Companies that report sustainability data enjoy higher gross margins

Companies that report sustainability data generally experience higher gross margins and return on sales, higher return on assets, and stronger cash flow and rising shareholder return, Environmental Leader reports on the results of a recent report from GMA and PricewaterhouseCoopers.

According to the report, two factors might explain why companies that report sustainability data consistently achieve higher return on assets: investment decisions and operational improvements associated with adopting sustainable practices.

The report “The Food, Beverage, and Consumer products Industry – Achieving Superior Financial Performance in a Challenging Economy – 2008″ was based on 60 large companies, 27 that reported sustainability data and 33 that did not. Read more

Source: Environmental Leader