Harvard Business Review

AUGUST 27, 2015

Companies in the top one-fifth of profitability earn, in aggregate, about 70 times more economic profit (accounting profit less cost of capital) than those in the middle three-fifths combined, according to McKinsey’s database of 3,000 large, publicly listed, nonfinancial U.S. companies have enjoyed supernormal rates of return.

ROIC 8

ROIC McKinsey GDP Company 8

Harvard Business Review

OCTOBER 21, 2016

Yet executives are often reluctant to place sustainability core to their company’s business strategy in the mistaken belief that the costs outweigh the benefits. These unpriced natural capital costs are generally internalized until events like floods or droughts cause disruption to production processes or commodity price fluctuation.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

Harvard Business Review

FEBRUARY 16, 2017

In Simon’s model, decision makers face costs when taking an action, and this makes them stick to “business as usual.” The SEC has recognized this point; in 2010 it issued a planning document asking publicly traded companies to disclose their climate exposure risk.

Company 9

Company Porter Forrester Simon 9