Question

According to a Harvard Business School study, how do the financial and stock market results of highly sustainable firms compare with others that are less sustainable?

Answer 1

According to a Harvard Business School study, highly sustainable firms tend to outperform less sustainable firms in terms of their financial and stock market results. These firms achieve better financial performance by reducing costs, attracting customers, and having a positive reputation.

Step-by-step explanation:

According to a Harvard Business School study, highly sustainable firms tend to outperform less sustainable firms in terms of their financial and stock market results.

These sustainable firms achieve better financial performance through various means:

1. 
   
3. They reduce costs by implementing environmentally friendly practices that increase efficiency and reduce waste.
4. 
   
6. They attract and retain customers who value sustainability, leading to increased sales and market share.
7. 
   
9. They have a positive reputation, which can attract investors and result in higher stock prices.

For example, sustainable companies may benefit from increased demand for their products or services due to changing consumer preferences towards environmentally friendly options. Additionally, investors may perceive these firms as lower risk due to their long-term focus on sustainability, leading to higher stock prices.