Trends

The challenge of international development requires a medley of ideas. At the Multilateral Investment Fund, we work in an array of topics that are at the forefront of efforts to spur the economic development of the private sector in Latin America and the Caribbean. Each week, this blog "Trends" brings you our latest research and thinking. 

Our complete list of blogs can be found here.

Greening corporate value chains lowers environmental impact and lifts competitiveness

By Michael Hofmann

Adidas, one of the world’s top two sportswear manufacturers, recently ended its business relationship with 13 of its Asian suppliers as a result of their severe or repeated noncompliance with labor, health, and safety workplace standards at their factories. This is one example of large multinational corporations working harder to demonstrate to their ever-more-demanding stakeholders that they operate sustainably. As a result, companies’ sustainability strategies are increasingly directly relevant to their operations—and are resulting in positive financial returns. An analysis of S&P 500 companies confirmed that businesses that have built sustainability into their core strategies achieve financial profitability that is significantly higher than that of their laggard peers—by between 18% and 67%.