DAVOS, Switzerland, Jan. 21, 2020 /CNW/ - Corporate Knights released its 16th annual ranking of the world's 100 most sustainable corporations in Davos today, after a rigorous assessment of 7,395 companies with more than US$1 billion in revenues. An analysis that compared the financial performance and corporate longevity of the Global 100 companies against the MSCI All Country World Index (ACWI) supports the mounting case that sustainable corporate performance is consistent with equal or better returns for investors and greater corporate longevity.
According to the Toronto-based sustainable-business magazine and research company's latest data crunching, the world's most sustainable corporation in 2020 is the Danish renewable energy provider Ørsted. The company, which a decade ago produced 85% of its energy from fossil fuels and 15% from renewable energy, has reversed that proportion and has a target to "essentially become carbon neutral" by 2025.
"Running the company just for profit doesn't make sense, but running it just for a bigger purpose is also not sustainable in the long term. Doing good and doing well must go together," said Ørsted CEO Henrik Poulsen. Since Ørsted joined the stock market through the world's second-biggest initial public offering of 2016, the company's value has more than doubled to US$40 billion.
Last year's top-ranked company – Chr. Hansen, a Danish bioscience company that uses "good bacteria" to provide natural means for preserving food, protecting plants and reducing overreliance on antibiotics in livestock farming – ranked number two overall.
Third was another Nordic company, Finland's Neste, an oil refiner that is switching from refining crude oil to using cooking waste and other bio-based materials as a feedstock.
Fourth was U.S. technology conglomerate Cisco, which rose 10 places from 14th, thanks to more than $25 billion in clean revenues from products with environmental core attributes. American software group Autodesk, which came fifth, rose 43 places from its 2019 ranking, now that it uses 99% renewable energy to run its cloud platforms – platforms that help build green buildings, reduce materials in manufacturing life cycles and support better designs for the circular economy.
Analysis of the company age and financial performance of the 2020 Global 100 continues to demonstrate that top sustainability performers tend to last longer and perform better for investors than comparable companies. The average age of a Global 100 company is 83 years, while the average age of a company in the MSCI ACWI is 49 years.
Investment returns were compared using the "Global 100 Index," which is calculated by Solactive and available via Bloomberg and Refinitiv. Composed of Global 100–ranked companies, it is equally weighted and mirrors the sector composition of the MSCI ACWI on a percentage basis. From its inception on February 1, 2005, to December 31, 2019, the Global 100 Index made an annualized net investment return of 7.3% compared to 7.0% for the MSCI ACWI (see Appendix A below for long-term trend).
"The Global 100 companies show that companies that put sustainability at their core outlast and outperform the competition," said Toby Heaps, CEO of Corporate Knights.
Global 100 companies also consistently outperform MSCI ACWI companies on CEO-to-average-worker-pay ratio, board gender diversity, paying their fair share of taxes, and on various other specific metrics that factor into the ranking.
Metric
| Global 100
| MSCI ACWI
|
CEO-to-average-worker-pay ratio
| 75:1
| 302:1
|
Carbon productivity (revenue-to-tonne-C02e ratio)
| $384k
| $174k
|
Clean revenues (from products or services with beneficial
environmental or social impacts as % of total revenues)
| 37%
| 6%
|
% of women on boards
| 30%
| 24%
|
Executive pay linked to sustainability measures (% of
companies having such a link)
| 63%
| 17%
|
Forty-nine of this year's Global 100 companies hail from Europe. The U.S. and Canada accounted for 29, while 18 companies in the ranking are from Asia. Latin America boasts just three members on the list, all from Brazil, and South Africa's Standard Bank was the only representative of the African continent.
The list includes 28 companies that were not on the Global 100 last year. BYD – China's biggest electric carmaker – is a new entrant, along with Hong Kong's Vitasoy, evidence that while the world's largest economy lags behind European and North American nations on key sustainability metrics, ESG (environmental, social, governance) issues are starting to gain traction where it will matter most.
For full rankings and methodology details, please see: corporateknights.com/global100
About Corporate Knights: Corporate Knights Inc. includes the sustainable-business magazine Corporate Knights and a research division that produces rankings and financial product ratings based on corporate sustainability performance.
About the Global 100 Most Sustainable Corporations in the World: The Global 100 is an annual project initiated by Corporate Knights, the company for clean capitalism. Launched in 2005, the Global 100 is announced annually on the sidelines of the World Economic Forum in Davos.
Appendix I: Net returns of the MSCI ACWI and the Corporate Knights Global 100 Index in USD as calculated respectively by Solactive and MSCI (from February 1, 2005, to December 31, 2019)
Appendix II: 2020 Global 100 Most Sustainable Corporations in the World
Rank
2020
| Full company name
| Country
| Peer Group
|
1
| Orsted A/S
| Denmark
| Wholesale Power
|
2
| Chr. Hansen Holding A/S
| Denmark
| Food and Other Chemical Agents
|
3
| Neste Oyj
| Finland
| Petroleum Refineries
|
4
| Cisco Systems Inc
| United States
| Communications Equipment
|
5
| Autodesk Inc
| United States
| Software
|
6
| Novozymes A/S
| Denmark
| Specialty and Performance Chemicals
|
7
| ING Groep NV
| Netherlands
| Banks
|
8
| Enel SpA
| Italy
| Wholesale Power
|
9
| Banco do Brasil SA
| Brazil
| Banks
|
10
| Algonquin Power & Utilities Corp
| Canada
| Electric Utilities
|
11
| OSRAM Licht AG
| Germany
| Electrical Equipment and Power Systems
|
12
| Sekisui Chemical Co Ltd
| Japan
| Other Materials
|
13
| Storebrand ASA
| Norway
| Insurance
|
14
| Umicore SA
| Belgium
| Primary Metals Products
|
15
| Hewlett Packard Enterprise Co
| United States
| Computer Hardware
|
16
| American Water
| United States
| Water Utilities
|
17
| Iberdrola SA
| Spain
| Wholesale Power
|
18
| Outotec Oyj
| Finland
| Machinery Manufacturing
|
19
| CEMIG
| Brazil
| Electric Utilities
|
20
| Accenture PLC
| Ireland
| Technology Consulting Services
|
21
| Dassault Systèmes SE
| France
| Software
|
22
| McCormick & Company
| United States
| Food and Beverage Production
|
23
| Kering SA
| France
| Apparel and Accessory Products
|
24
| UPM-Kymmene Oyj
| Finland
| Forestry and Paper Products
|
25
| Taiwan Semiconductor Manufacturing Co
Ltd
| Taiwan
| Semiconductor Equipment and Services
|
26
| Prologis Inc
| United States
| Real Estate Investment Trusts (REITs)
|
27
| Hennes & Mauritz AB (H&M)
| Sweden
| Apparel and Accessories Retail
|
28
| Sanofi SA
| France
| Biopharmaceuticals
|
29
| Schneider Electric SE
| France
| Industrial Conglomerates
|
30
| Natura Cosmeticos SA
| Brazil
| Personal Care and Cleaning Products
|
31
| BNP Paribas SA
| France
| Banks
|
32
| KONE Oyj
| Finland
| Machinery Manufacturing
|
33
| Verbund AG
| Austria
| Wholesale Power
|
34
| Valeo SA
| France
| Consumer Vehicles and Parts
|
35
| ERG SpA
| Italy
| Wholesale Power
|
36
| City Developments Ltd
| Singapore
| Real Estate Investment and Services
|
37
| Vestas Wind Systems A/S
| Denmark
| Electrical Equipment and Power Systems
|
38
| bioMérieux
| France
| Diagnostics and Drug Delivery Devices
|
39
| Intesa Sanpaolo SpA
| Italy
| Banks
|
40
| Koninklijke KPN NV
| Netherlands
| Wireless and Wireline
Telecommunications Services
|
41
| Siemens AG
| Germany
| Industrial Conglomerates
|
42
| National Australia Bank Ltd
| Australia
| Banks
|
43
| Shinhan Financial Group Co Ltd
| South Korea
| Banks
|
44
| Bombardier Inc
| Canada
| Aerospace and Defence Manufacturing
|
45
| Koninklijke DSM NV
| Netherlands
| Food and Other Chemical Agents
|
46
| Unilever PLC
| United
Kingdom
| Personal Care and Cleaning Products
|
47
| Sims Metal Management Ltd
| United States
| Primary Metals Products
|
48
| Bank of Montreal
| Canada
| Banks
|
49
| Cascades Inc
| Canada
| Containers and Packaging
|
50
| Advantech Co Ltd
| Taiwan
| Computer Hardware
|
51
| Standard Bank Group Ltd
| South Africa
| Banks
|
52
| Ericsson
| Sweden
| Communications Equipment
|
53
| Danaher Corporation
| United States
| Medical Devices
|
54
| Canadian National Railway Co
| Canada
| Cargo Transportation and Infrastructure
|
55
| Adidas AG
| Germany
| Apparel and Accessory Products
|
56
| AstraZeneca PLC
| United
Kingdom
| Biopharmaceuticals
|
57
| Stantec Inc
| Canada
| Facilities and Construction Services
|
58
| HP Inc
| United States
| Computer Peripherals and Systems
|
59
| Commerzbank AG
| Germany
| Banks
|
60
| Sun Life Financial Inc
| Canada
| Insurance
|
61
| ABB Ltd
| Switzerland
| Industrial Conglomerates
|
62
| Alphabet Inc
| United States
| Internet and Data Services
|
63
| CapitaLand Limited
| Singapore
| Real Estate Investment and Services
|
64
| Pearson PLC
| United
Kingdom
| Personal Professional Services
|
65
| BT Group PLC
| United
Kingdom
| Wireless and Wireline
Telecommunications Services
|
66
| Metso Oyj
| Finland
| Machinery Manufacturing
|
67
| Comerica Incorporated
| United States
| Banks
|
68
| Takeda Pharmaceutical Co Ltd
| Japan
| Biopharmaceuticals
|
69
| Assicurazioni Generali SpA
| Italy
| Insurance
|
70
| Acciona SA
| Spain
| Facilities and Construction Services
|
71
| Novo Nordisk A/S
| Denmark
| Biopharmaceuticals
|
72
| Konica Minolta Inc
| Japan
| Computer Peripherals and Systems
|
73
| Skandinaviska Enskilda Banken AB
| Sweden
| Banks
|
74
| Tesla Inc
| United States
| Consumer Vehicles and Parts
|
75
| Westpac Banking Corp
| Australia
| Banks
|
76
| UCB SA
| Belgium
| Biopharmaceuticals
|
77
| Workday Inc
| United States
| Software
|
78
| Merck & Co Inc
| United States
| Biopharmaceuticals
|
79
| GlaxoSmithKline PLC
| United
Kingdom
| Biopharmaceuticals
|
80
| Samsung SDI Co Ltd
| South Korea
| Electrical Equipment and Power Systems
|
81
| Intel Corporation
| United States
| Semiconductor Manufacturing
|
82
| Analog Devices Inc
| United States
| Semiconductor Manufacturing
|
83
| IGM Financial Inc
| Canada
| Investment Services
|
84
| Canadian Solar Inc
| Canada
| Electrical Equipment and Power Systems
|
85
| BYD Co Ltd
| China
| Consumer Vehicles and Parts
|
86
| Kao Corporation
| Japan
| Personal Care and Cleaning Products
|
87
| BASF SE
| Germany
| Specialty and Performance Chemicals
|
88
| Cogeco Communications Inc
| Canada
| Wireless and Wireline
Telecommunications Services
|
89
| Panasonic Corporation
| Japan
| Computer Hardware
|
90
| Vitasoy International Holdings Ltd
| Hong Kong
| Food and Beverage Production
|
91
| Teck Resources Limited
| Canada
| Metal Ore Mining
|
92
| Toyota Motor Corporation
| Japan
| Consumer Vehicles and Parts
|
93
| Campbell Soup Company
| United States
| Food and Beverage Production
|
94
| Industria de Diseño Textil SA
| Spain
| Apparel and Accessories Retail
|
95
| Singapore Telecommunications Limited
| Singapore
| Wireless and Wireline
Telecommunications Services
|
96
| Telus Corporation
| Canada
| Wireless and Wireline
Telecommunications Services
|
97
| Lenovo Group Ltd
| China
| Computer Peripherals and Systems
|
98
| L'Oréal SA
| France
| Personal Care and Cleaning Products
|
99
| Kesko Corporation
| Finland
| Food and Beverage Retail
|
100
| Amundi SA
| France
| Investment Services
|
SOURCE Corporate Knights Inc.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/January2020/21/c6421.html
Toby Heaps, CEO, Corporate Knights, Phone: ++ 41 791022437, Rmail: toby@corporateknights.comCopyright CNW Group 2020
