The present invention provides certain sulfonated copolyetherester compositions containing hydroxyalkanoic acids and processes for producing such sulfonated aromatic copolyetheresters. The invention further provides shaped articles, preferably in the shape of films, coatings and laminates, having improved thermal properties, wherein the shaped articles are produced from the certain sulfonated copolyetherester compositions. Some of these materials are also biocompostable. The sulfonated copolyetheresters are produced from a mixture of an aromatic dicarboxylic acid component, hydroxyalkanoic acid component, a sulfonate component, a poly(alkylene ether) glycol component, a glycol component, an optional other glycol component, an optional branching agent, and an optional color reducing agent.