Investors should "rate" firms on environment

Business group urges financial markets to consider corporate environmental performance

The World Business Council for Sustainable Development (WBCSD) today called for greater recognition of the links between companies' environmental and financial performance. In a report released at a United Nations Environment Programme meeting on finance and environment in New York, the WBCSD says that financial analysts and investors should factor "environmental drivers" into their decision making on companies' financial value and prospects. The report urges industry "to seek ways of translating better environmental performance into improved shareholder value." The link has not so far been "readily apparent," it says, but "the gap between information and understanding is beginning to be bridged." Benchmarking within and between industry sectors is likely to be an important tool for making the link, the report says. "Common indicators and perhaps recognised standards of performance will evolve....In the meantime, knowledgeable analysts will give 'extra points' to those companies which state their internal goals and provide an annual accounting of their progress."

Follow Up:
World Business Council for Sustainable Development , tel: +41 22 839 3141.

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