Some important investors, such as pension funds in major European and North American markets, are now taking sustainability evaluations of companies into consideration when making investment decisions.
Specialized sustainability rating agencies provide investors, banks, fund managers and securities brokers with ratings of companies’ environmental and social performance.
The two major stock exchange players, Dow Jones and FTSE, have created sustainability indexes of listed companies - Dow Jones Sustainability Index and FTSE4Good
For example, Sustainability Asset Management (SAM), Swiss rating agency, analysed performance of firms in automotive industry based on their preparedness for climate change.
Such evaluations will drive technological competition between companies towards higher fuel and resource efficiency.