Please ensure Javascript is enabled for purposes of website accessibility

More Corporations See Sustainability as a Boon, Not a Burden

By Alyce Lomax - Feb 4, 2014 at 9:00AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors who want to make more money should think about corporate sustainability efforts.

Sustainability: Investors aren't always keyed in to this factor as an investing catalyst. However, corporations are increasingly recognizing it as a sound business practice. After all, increasing efficiency and reducing waste are vital to companies' success.

PepsiCo (PEP 0.34%) is a giant multinational corporation known for sodas, snacks, and chips. However, it's making strides in areas that may still be lost on investors.

When it comes to this kind of evolution, Pepsi has a variety of goals. As just one example, in 2012, Pepsi was able to reuse 91.2% of the solid waste that 260 of its manufacturing plants produced, sending only 8.8% to landfills. 

The soda giant's partner, 3M (MMM 0.94%), awarded Pepsi's Mexican Sabritas unit a sustainable packaging award for a solution that incorporated sustainability into the packaging process in a big way. This solution reduced waste by 70% while ensuring that product deliveries were well executed. The solution also led to a 5% decrease in costs. 

Everyone thinks of Waste Management (WM -0.11%) as a trash hauler, but investors should think about another impressive evolution: It's arguably an energy company, too. In fact, recent data showed that Waste Management's waste-to-energy projects rival the output of solar energy in the U.S. 

Motley Fool senior analyst Alyce Lomax says she feels optimistic about the future of our marketplace as more and more companies retool these parts of their businesses.

Alyce Lomax owns shares of Waste Management. The Motley Fool recommends 3M, PepsiCo, and Waste Management. The Motley Fool owns shares of PepsiCo and Waste Management. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Pepsico, Inc. Stock Quote
Pepsico, Inc.
PEP
$176.54 (0.34%) $0.60
Waste Management, Inc. Stock Quote
Waste Management, Inc.
WM
$169.88 (-0.11%) $0.19
3M Company Stock Quote
3M Company
MMM
$150.78 (0.94%) $1.40

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
390%
 
S&P 500 Returns
125%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/11/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.