Companies With a Commitment to Sustainability Tend to Outperform Their Peers During the Financial Crisis

CHICAGO, IL and WASHINGTON, DC, Feb 09 (MARKET WIRE)
--
While President Obama's green policies will certainly boost innovation in
certain areas, many in industry still believe that there is a fundamental
conflict between "sustainable" and "affordable." But companies looking
for ways to survive in the current economic climate should think twice
before cutting back on sustainable initiatives. In 16 out of 18
industries, companies with a commitment to sustainability were the clear
leaders in the financial markets.

These findings are the result of a study released today by A.T. Kearney,
Inc., titled "Green Winners: The Performance of Sustainability-focused
Companies in the Financial Crisis," which looked at 99 companies
identified as having a strong commitment to sustainability and compared
their performance with industry averages. The 99 companies were defined by
the Sustainability Index and the Goldman Sachs Sustain Focus List.

The analysis found that in 16 of the 18 industries studied, companies
committed to sustainability outperformed industry averages by 15% over the
six months from May through November 2008. From a market capitalization
perspective, this superior performance averages out to $650 million in
protected market capitalization per company.

"Our study indicates that the market rewards specific companies," said Dr.
Daniel Mahler, author of the study. "We find common characteristics among
the leading companies that show that sustainability goes far beyond the
narrow definition of being environmentally friendly."

These characteristics include:

-- A focus on long-term strategy, not just short-term gains
-- Strong corporate governance
-- Sound risk-management practices
-- A history of investment in green innovations

The study contains discussions of each of the 18 industries studied,
as well as examples of best practices from a variety of industries.
Together with the macro analysis, these case studies provide a map for
companies looking to be proactive in terms of protecting their market
capitalization.

While green measures that produce immediate cost-savings such as reducing
packaging material and decreasing fuel use will become increasingly common
in a cash-strapped economy, "Sustainability and the Financial Crisis"
suggests that investing in sustainability for the long term may be the
best way to protect a company's value through the months -- and years --
ahead.

Methodology

The study covered all 10 industries, and 18 out of 19 supersectors
(excluding real estate) as defined by Industry Classification Benchmarks.
These were:

-- Utilities
-- Telecommunications
-- Technology
-- Oil & Gas
-- Industrial Goods and Services
-- Construction & Materials
-- Health Care
-- Insurance
-- Financial Services
-- Banks
-- Travel & Leisure
-- Retail
-- Media
-- Personal & Household Goods
-- Food & Beverage
-- Automobiles & Parts
-- Chemicals
-- Basic Resources

The Study analyzed 99 of the largest companies recognized as
"sustainable" by the Dow Jones Sustainability Index and/or the Goldman
Sachs Sustain Focus List. The stock price for each of these was indexed
to 100 for the time period analyzed, and were averaged within each
supersector to create a combined Sustainable Company index for the
industry. These indices were then compared with Dow Jones World and STOXX
global indices for these sectors to determine the performance
differential.

For a copy of the full study, please go to www.atkearney.com.

About A.T. Kearney

A.T. Kearney (www.atkearney.com) is a global strategic management
consulting firm known for helping clients gain lasting results through a
unique combination of strategic insight and collaborative working style.
The firm was established in 1926 to provide management advice concerning
issues on the CEO's agenda. Today, we serve the largest global clients in
all major industries. A.T. Kearney's offices are located in major business
centers in 34 countries.

Contacts:

Jim Brown
A.T. Kearney
312-223-6220
Email Contact

Meir Kahtan
Meir Kahtan Public Relations
212-575-8188
Email Contact

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