Top Ranking Firms Showcase Sustainability
According to a new report from Corporate Knights, France and Denmark excel in hosting the world’s most sustainable companies. The annual Global 100 index ranks firms based on a comprehensive set of sustainability and ethical indicators, highlighting Schneider, a French electrical equipment company, as the top firm.
Criteria for Ranking Companies
The Global 100 index evaluates a range of factors, including carbon emissions, water usage, and sustainable investment levels. Additionally, non-environmental aspects such as fair worker compensation and gender parity also play a crucial role in the rankings. This year’s list features numerous companies from France, Denmark, and Germany, reflecting a strong commitment to sustainability within the EU.
Australia Dominates Beyond the EU
Outside of Europe, Australia claims significant representation within the top five rankings, with companies like Sims waste management and Brambles furniture occupying the second and fourth positions respectively. The ranking is based on a thorough assessment of 8,359 companies worldwide, each generating over $1 billion in revenue.
Surge in Sustainable Investments
The 2023 Global 100 companies demonstrated a strong commitment to sustainability, investing 58% of their capital expenditures, research and development, and acquisitions in green initiatives. This figure starkly contrasts with the mere 15% average allocated to sustainable investments by other large corporations. According to Toby Heaps, CEO of Corporate Knights, sustainable revenues for major global public companies are growing at twice the rate compared to other revenue streams, amassing more than $5 trillion annually.
Challenges Amidst Growth Trends
Despite the overall increase in sustainable revenues, Global 100 firms faced challenges in investment returns compared to the MSCI ACWI index in recent years. High interest rates made borrowing costly, and the Global 100 has fewer U.S. firms compared to the MSCI ACWI, which benefited from high-performing stocks in 2024. However, Heaps anticipates a rebound for Global 100 stocks in 2025, reaffirming the potential for sustainable companies to flourish amid economic fluctuations.
SOURCE: Ref Image from Electrical Times
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