A strong sustainability policy helps listed companies perform better, JP Morgan said today.
Speaking at the 2008 European Public Real Estate conference in Stockholm, Sweden, JP Morgan property analyst Harm Meijer said that research undertaken by his team showed that listed companies with a strong sustainability agenda saw their share prices rise by on average 6-10% more than others who ignored the matter.
He said that this was because it reduced the chances of companies being caught out by future changes in government legislation. ‘A lot of countries are looking to introduce more structured targets and some of the companies we cover are in for a shock,’ he said.
‘On a broader basis, environmental and social governance concerns are gaining momentum with tenants and investors, for example as they look to reduce energy costs.’