Market May Reward 'Greenwashing' Over Green Results
A growing number of people are interested in investing in companies that perform well environmentally as well as economically. Unfortunately, measuring environmental performance is not as straightforward as calculating a simple financial return on investment. Developing a yardstick for environmental performance is inherently fraught, forcing evaluators to reduce all of the complex dimensions of sustainability, greenhouse gas emissions, water consumption, biodiversity impacts and other factors into a single value. Unsurprisingly, there is no consensus on the "right" approach and a proliferation of methodologies has caused confusion and eroded confidence among potential investors. When researchers at UCLA and º«¹úÂãÎè conducted an evaluation that disentangled the different dimensions of environmental performance, they found troubling results.
... "Triangulating Environmental Performance: What Do Corporate Social Responsibility Ratings Really Capture?" by Magali A. Delmas, Dror Etzion, and Nicholas Nairn-Birch in Academy of Management Perspectives, August 2013
Read full article:Â , March 1, 2014
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