Thursday, December 4, 2008

Consumer Goods Companies Face Major Earning Hit Without Smart Environmental Sourcing

CHICAGO and WASHINGTON, DC, December 1, 2008 — Companies in certain consumer goods sectors that do not implement sustainable environmental strategies could face a potential reduction of 13 percent to 31 percent in earnings by 2013 and 19 percent to 47 percent in earnings in 2018.

These findings are the result of a "future scenario" analysis released today by the World Resources Institute and A.T. Kearney, Inc. It is titled Rattling Supply Chains: The Effect of Environmental Trends on Input Costs to the Fast Moving Consumer Goods Industry, and is the first report of its kind to calculate the financial impact of environmental issues facing this industry.

The analysis provides consumer packaged goods executives with a tool to assess how environmental legislation and climate change could impact their businesses in future years. It also outlines how these executives can begin to develop strategies to address these issues.


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