Is there a connection between good sustainability, social responsibility, environmental performance, ethics and financial performance?
Over 90% of 130 trustees of British pension funds think that good corporate governance would have a positive impact on the market value of FTSE 100 companies in the long term (5-10 years), according to a survey by Just Pensions in 2004. A good SRI record can even mean lower borrowing rates: Interest rates are adjusted to reflect risk, and companies that are positioned as sustainable development practitioners are perceived as presenting less risk, and accordingly the cost of borrowed capital is reduced, thus retaining cash for the company that will generally have a positive impact on share price. (Brian Schofeld, Employee Benefits Journal, 1 March 2003). The new indicies such as the FTSE4Good, Dow Jones Sustainability Index mean greater exposure for a company and potentially stronger demand for its shares, thus bolstering its share price. The Domini Index, an index of socially responsible companies, claims to have outperformed the S&P Index on a total return basis since 1990. The FTSE4G
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