How good green governance leads to profits

When it comes to a company practising good green governance, it is not about being altruistic. It is also not just about improving the company’s risk management, as a risk management program is seen as a cost to a company (albeit a justified and worthwhile cost). Greening can lead to savings for a company (e.g. reduction of energy consumption, raw materials, water, etc.). Far from being a cost factor, good green management can directly contribute to a company’s bottom line and increase profitability.

But how can an investor know if they can attribute this profitability to green practices? Without digging through a company’s financial statements and sustainability reports, one might assume that profits come solely from a superior product or service, effective advertising, or something else. How can a company best demonstrate to a broad audience that its good green governance has contributed to its profits?

In a recent article Shelley Goldberg explores the question of what green governance actually describes and looks at various aspects of ESG practice that might provide answers.


These are the upcoming dates for our Annual General Meetings:

Thursday, 21 March 2024
Thursday, 20 March 2025