Sustainability has become an industry of its own, an aspiration of organisations that matches, if not tops, the importance of profit for a business. And as environmental, social and governance (ESG) becomes one of the main criteria for investors to make decisions, the demand for measurable actions is likely to grow.
More than 300 companies that have committed to net-zero emissions strategies make up around US$3.6tn total market capitalisation, and they are all looking for ways to limit global warming to the 1.5 degree target set out in the Paris Climate Agreement.
As You Sow, an organisation that advocates corporate social responsibility (CSR), has collated data to determine which companies are championing this. The Clean200 is a list of organisations that was compiled to highlight the organisations that are leading the way in sustainability with the cause embedded in their corporate strategies, products, business models and investments.
Who tops the Clean200 sustainable companies list?
The list contains some big industry names for their abilities to generate revenue through sustainable means or to support the wider engagement of stakeholders in ESG. But, who tops the list?
- Alphabet Inc.
- Siemens AG
- Taiwan Semiconductor Manufacturing Company
- SAP SE
- Iberdrola SA
Of all the companies that are listed in the Clean200, US industry receives a majority playing host to 46 of the cleanest organisations.
What is the criteria for the Clean200?
The data is sourced from Corporate Knights and figures are calculated by multiplying each firm’s recent end of year revenue figure by its estimated clean energy revenue. The Criteria also states that companies must not exceed US$1bn revenue and earn more than 10% from clean revenue streams.
Negative screening is used to determine the Clean200, which excludes organisations that operate primarily in oil and gas, and utilities. Various other criteria were involved in negative screening, such as:
- Contribution to deforestation in through agribusiness or trade
- Organisations in the coal industry
- Manufacturers or other businesses involved in weapons production
- Companies with previous involvement in illegal activity
- Private prisons
The list also highlights the diversity among organisations and their leaders as it notes the companies that are represented by diverse leadership teams.
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