'Eco-friendly Cos well equipped to surge ahead'

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New York, June 26:: Companies that effectively manage environmental, social and governance factors may be better equipped to achieve and retain market leadership, according to a new report by Goldman Sachs International, global banking and securities firm.

Presenting his company's first environmental, social and governance investment framework, Goldman Sachs International Managing Director Anthony Ling told the Press on Monday that these factors had become prominent because of the 'changing competitive landscape for industry'.

Consumers, he said, are taking into account these factors as never before, the Internet has ushered in an era of unprecedented communication and more than 3,000 non-governmental organizations (NGOs) are registered with the UN. This has increased the need for transparency for corporations.

A weak performance in the environmental, social, and governance area means 'you are going to lose competitive advantage, and this will impact on your stock performance,' and more investors are taking into account such factors when picking up stocks, the report said In 2005, Goldman Sachs set up a dedicated team to measure company performance against those factors, covering sectors such as energy, pharmaceutical, insurance, banking and finance. "The initial signs are very encouraging, and corporations are adopting new practices," Ling said.