There is often a notion among investors that large companies are better suited to deal with economic downturns. However, a new study says that smaller organizations that focus their efforts on sustainability may win out in the long run.
For instance, a study by the Global Alliance for Banking on Values said that during 2007 to 2010 sustainable banks had higher levels of growth in loans and deposits and better Returns on Assets with comparable Returns on Equity than the world’s 29 top Global Systemically Important Financial Institutions. Sustainable banks fund a much larger portion of their total balance sheet with customer deposits than GSIFIs, a sign of financial stability.
Sustainable banks averaged over 70 percent total deposits to total assets vs. about 41 percent on average for GSIFIs in 2010. That same year, sustainable banks averaged close to nine percent equity to assets compared to under 6 percent on average for GSIFIs. When one talks about growth rates in loans, deposits and assets from 2007 through 2010 sustainable banks on average had net income growth of 64.62 percent; by contrast to average net income growth for GSIFIs was minus 6.72 percent.
“These banks demonstrate decades of responsible banking and a consistent commitment to productive economic activity,” wrote the Global Alliance. “They have increased their activity during the present recession, expanding their lending to small and growing businesses in particular. … The evidence of their success suggests a renewed emphasis in public policy, and by investors, on sustainable banks, could provide the long-term path for responsible banking necessary to support a more just, environmentally sound, and sustainable economy.”
Another report on hotel energy and carbon efficiency by Brighter Planet on the majority of hotels in the U.S. by the Brighter Planet said that, “budget hotels are generally more efficient . . . The average upscale hotel uses 25% more energy per room-night than the average budget hotel. [However] the majority of upscale hotels are cleaner than the dirtiest budget establishments.”
The top 5 hotel chains, in terms of energy and carbon efficiency are Vagabond Inns and Red Lion Hotels and Inns (both mid-range) and Red Carpet Inns, Travelodge, and Scottish Inns (all three are budget). Westin Hotels & Resorts, Embassy Suites Hotels, Renaissance Hotels & Resorts, AmercInn International, and JW Marriott Hotels & Resorts were at the bottom of the efficiency list and all are upscale chains.
“Hotels are growing less and less efficient. Modern hotels use significantly more energy per room-night than their older-vintage counterparts, and the energy they use is dirtier,” concluded the report by Brighter Planet.
Source: Brand Channel
