Study Explores the Relationship Between Sustainability and Corporate Financial Performance

Many studies have addressed the tangible benefits of green building design – decreased energy costs or increased property values, for example. Now, researchers from the University of Notre Dame have completed “the first study… linking what have traditionally been considered intangible benefits of green building – employee satisfaction and brand reputation – to corporate financial growth metrics.”

“The implications of the study findings are enormous. Owners and occupants of green buildings can now be expected to experience measurable business benefit beyond simple operational efficiencies.”

The Relationship Between Corporate Sustainability and Firm Financial Performance compares the financial performance of 93 LEED rated bank branches with 469 non-rated branches owned and operated by PNC Financial Services Group. PNC’s early and significant interest in LEED helped form the basis for the LEED Volume Certification Program.

Key results of the study include:

Environmental practices – including LEED certification – were positively related to an increase in household consumer business.
The impact of environmental practices was stronger on consumer accounts than it was on business accounts.
Utility costs were lower for green buildings.

The study’s authors believe that the difference between the impact on consumer and business accounts may be due to individual consumers having a preference for business that employ sustainability practices.