Banks that are LEED-certified make more money, a University Notre Dame study finds.
Over the years, there have been lots of studies that show employees are more satisfied and productive when they work in green buildings, but this is the first study to show that banks actually bring in significantly more revenue.
Researchers found that bank branches generate more revenue – $461,300 per employee – even though they offer the same products and services.
University of Notre Dame management professors Edward Conlon and Ante Glavas compared 562 PNC Financial Services Group, Inc. (NYSE: PNC) branches (93 LEED, 469 non-LEED) in “The Relationship between Corporate Sustainability and Firm Financial Performance.”
They conclude that PNC employees who work in LEED-certified branches are more productive and engaged in their work.
“It’s a significant finding, and it surprised me. We compared the amount of money deposited at LEED and non-LEED branches, and we found more money has been deposited in the LEED branches,” says Edward Conlon.
Researchers controlled for other variables that influence performance (e.g., consumer net worth, employee demographics, market demographics, size and age of branch, marketing spend).
PNC has 100 LEED-certified buildings, more than any in the world. In 2010, they opened Three PNC Plaza, one of the largest LEED-certified mixed use buildings in the US.
Last year, PNC announced plans to build the world’s greenest skyscraper in their home town of Pittsburgh headquarters.
The 40-story Tower at PNC Plaza will be about 800,000 square feet and is scheduled for completion in 2015.
Back in 2004, Pittsburgh was named the greenest city in America because of the number of LEED-certified buildings.
“I think it’s safe to say PNC is getting a payback on its LEED investment,” says Conlon.
Read this article on the benefits of green building that we published back in 2004 – it holds true today: