Drawing from the resource-based view and natural-resource-based view (NRBV), we examine the relationship between a firm’s environmental expenditure on both cost of revenue and net income. We also analyse the moderating effects of R&D and environmental products on the respective relationships. Specifically, we conduct robust regression analyses using environmental and financial data of S&P500 firms from 2000 to 2014. The results provide insights into conditions when it pays to be green.