Auto Parts Sector Outperform Other Sectors In Environmental Performance.(Brief Article)

Top environmental performers in Innovest's annual investment research report on the Global auto parts sector posted accumulated returns over 48.8 percent higher than environmental laggards over a 3-year period, and 6 percent higher returns over 1-year.

Denso Corp. and Snap-On emerged as the top ranked companies in Innovest's annual survey, which assessed the performance of 18 of the world's leading automotive parts and supply companies in areas such as environmental management, resource usage, climate change, product life cycle analysis and sustainability-related profit opportunities in new markets. Federal Mogul and Genuine Parts were the lowest rated firms.

"We see this relationship between environmental and financial performance in sector after sector, although pinpointing its source is often difficult," said Marc Brammer, the report's primary author. "What makes the automotive parts and supply industry stand out is the extent to which environmental issues influence the bottom line. Pressure is increasing on the whole industry to lower its impacts and create more efficient, longer-lasting, and less-polluting vehicles. Tier one suppliers to the major automakers shoulder the majority of the burden for environmental impacts and costs because they design many of the components that determine efficiency and performance as well as conducting the more intensive manufacturing processes such as metal plating, and plastics molding."

"This puts the auto parts industry in the prime position to assist the major automakers in addressing environmental impacts. This position will allow environmental leaders to gain market share if they can provide the solutions the industry needs to move forward. We have seen that these issues point to the intangible value drivers that make companies succeed or fail, especially in recessionary environments."

Innovest Strategic Value Advisor, with headquartered in New York, with offices in London and Toronto, is an international investment research firm specializing in environmental finance and investment opportunities. Innovest's clients include the leading industrial companies and institutional investors throughout the world.

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