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Cheat sheet: 22 studies on ROI of Sustainability

October 8, 2017

The famous line from the 1996 film "Jerry Maguire" and it echoed in dramatic negotiations between professional athletes and their agent: Jerry Maguire played by Tom Cruise.  "Show me the money!"

 

Here it is Jerry....it's in sustainability:
 

Sustainable Brands just came out with their latest overview of recent studies showing the return on investment (ROI) from--what I would call--smart sustainability (since "dumb sustainability" wouldn't produce any enduring benefit).  Here's a quick summary of six "show me the money" studies for you:

  • Project ROI: recent report funded by Verizon, Campbell's and others summarizes 300 studies and claims smart sustainability can increase revenue 20%, market value 6%, employee productivity 13%, reduce turnover 50% and provide risk protection of up to 7% of company value
     

  • Green Giants:  book by Freya Williams, CEO of North America at Futerra, a sustainability strategy and creative agency, compared market performance of high performing, "green giant" companies and found they performed 11.7% better than their leading competitors from 2010 to 2015 and outperformed S&P 500 by 6.8% per year. 

  • Meaningful Brands Study: a brand's "share of wallet" -- a metric in marketing that measures the percentage of a customer's wallet is spent on a companies products and services -- is 46% higher for "meaningful brands" (defined as brands seen to improve health and quality of life)