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September 26, 2012      
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Green Companies Have More Productive Employees

Firms that have adopted environmental standards such as ISO 14001 have significantly more productive workers than other firms. This is the key finding of a paper published this month in the Journal of Organizational Behavior. The paper, which is based on a study of 5220 French firms and their employees, also demonstrates that employees at companies following environmental standards tend to be better trained and have a greater degree of interpersonal contact at work — factors that can improve labor productivity.

I've written before that some companies believe their embrace of sustainability helps engage employees in the company's broader mission. Firms see a prominent sustainability program as an aid to employee recruitment and retention and a way of enhancing employee productivity. Indeed, the paper found that companies that had adopted environmental standards enjoyed labor productivity 16% to 21% greater than companies that had not implemented such standards.

How Company Efforts to Obtain Supplier Sustainability Data Will Change

Why do green companies have more productive employees? The study points out that implementing environmental standards requires an investment in employee training, which tends to lift productivity. It also notes that ...

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  Wasted: How America Is Losing Up to 40 Percent of Its Food from Farm to Fork to Landfill
This study, released by NRDC last month, contained statistics that may cause indigestion in some readers. "Getting food from the farm to our fork eats up 10 percent of the total U.S. energy budget, uses 50 percent of U.S. land, and swallows 80 percent of all freshwater consumed in the United States."
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  Investors Reward Environmental Results - Not Targets
This study found that energy-intensive companies operating in regions where carbon emissions are taxed can boost their stock prices by reducing carbon emissions. Researchers, at ETH Zurich, a Swiss university, found that merely announcing emissions reductions targets yields no positive effect on share prices.
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This work is licensed under a CreativeCommons License. Copyright Sustainable Life Media Inc. 2011