Green Shareholder Value: Hype or Hit?

This report, from the World Resources Institute, attempts to prove that investors do in fact care about crucial environmental concerns. The report argues that there is a moderate positive relationship between financial and environmental performance. Reed feels that once this connection has been more thoroughly shown, institutional investors and investment advisors will be encouraged to consider environmental issues in their decision-making because of something he terms the “prudent person” standard – his belief that in the future shareholders will pay careful attention to environmental concerns.