For Banks, Money Grows on Green Branches

By Erin WeaverGreen buildings can improve a company’s financial performance beyond the savings provided by operational efficiencies, according to a new study from the University of Notre Dame. “The Relationship Between Corporate Sustainability and Firm Financial Performance” compares business performance at 562 bank branches owned by PNC Financial Services Group, 93 of them LEED-certified under PNC’s Green Branch program. The study looked only at facilities more than three years old, and took into account different facilities’ market demographics.

Between 2008 and 2010, the certified branches averaged 458 more consumer deposit accounts opened annually, with $3 million more in consumer deposit balances per facility. Certified facilities also averaged 25 more consumer loan accounts per year. Overall, sales at certified branches increased $461,300 per employee compared to non-certified branches. The authors suggest that customers may be attracted to a commitment to sustainability and that employees at LEED facilities may have higher job satisfaction and provide better customer service.

PNC’s Green Branch program contributed to development of the LEED Volume Certification Program, intended to streamline certification across a portfolio of similar buildings.