Employees at ’green’ companies are significantly more productive, study finds

Bucking the idea that environmentalism hurts economic performance, a new UCLA-led study has found that companies that voluntarily adopt international "green" practices and standards have employees who are 16 percent more productive than the average. Professor Magali Delmas, an environmental economist at UCLA's Institute of the Environment and Sustainability and the UCLA Anderson School of Management , and Sanja Pekovic from France's University Paris-Dauphine are the first to study how a firm's environmental commitment affects its productivity. "Adopting green practices isn't just good for the environment," Delmas said. "It's good for your employees and it's good for your bottom line. Employees in such green firms are more motivated, receive more training, and benefit from better interpersonal relationships. The employees at green companies are therefore more productive than employees in more conventional firms." For their study, "Environmental Standards and Labor Productivity: Understanding the Mechanisms That Sustain Sustainability," Delmas and Pekovic collected data from a survey of employees at 5,220 French companies, randomly selecting two employees from each company for a pool of more than 10,000 people. Companies that had voluntarily adopted international standards and eco-labels such as "fair trade" and "organic" or the International Organization for Standardization's ISO 14001 certification were identified as green.