Trucost: Valuing Corporate Environmental Impacts
Posted: 4 Feb 2012
Date Written: December 12, 2011
Trucost provided corporate environmental performance data and analysis to institutional investors and corporate managers, but after operating for a decade had yet to achieve profitability. Trucost was struggling to effectively differentiate its high quality products from its lower-cost competitors, and needed to develop a strategy to educate the marketplace and pursue new distribution channels. Increased investor interest in environmental issues-and an ever growing number of corporate environmental ranking-led to a proliferation of competitors to Trucost, and an industry shakeout were predicted. How should Trucost compete?
Learning Objective: To introduce students to corporate environmental and sustainability ratings and competitive strategies among rating agencies, and the difficulties of competing on high quality information products that are credence goods-in that customers never truly know the quality after they purchase the information.
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