Consumer goods makers and telecommunications companies are missing out on the chance to build investor confidence by not reporting on the financial benefits of their strong environmental performance, a pair of reports has said.

Carbon disclosure charity CDP, management consultancy Accenture and Hermes Investment Management said 42% of top brands were embracing environmental best practice but were failing to quantify the financial benefits.

Justin Keeble, managing director for Accenture Strategy, said: “We see this as a huge missed opportunity for companies.

“Reporting on financial value through environmental performance allows businesses to build investor trust, provide meaningful transparency and help ensure long-term profitability.”

‘Sound business sense’

Bruce Duguid, director at Hermes Investment Management, said: “There is no doubt in the positive correlation between sound and progressive environmental performance and how a company performs financially.

“What we've found through our own work, which was cemented by this latest analysis, is that the investment community pays increasingly close attention to how a company captures and reports environmental performance and opportunities.”

CDP Chief Executive Paul Simpson added: “The bottom line is that environmental performance improvement makes sound business sense.”

> Read the reports