Illustration by Michael Byers
100 most sustainable companies of 2023 still flourishing in tumultuous times
Meet the latest Global 100 companies driving the transition to a low-carbon, circular economy
BY
Mike Scott
January 18, 2023
With Russia’s war in Ukraine driving energy prices up to record levels and the world experiencing unprecedented climate disasters, it has never been more important for companies to cut their emissions and double down on sustainability.
This year’s Global 100 ranking of the world’s most sustainable companies, now in its 19th year, reveals that the transition is gathering momentum – and that businesses that take sustainability seriously are flourishing financially.
While the Global 100 is light on oil and gas companies, whose profits have soared because of rising energy prices (Finland’s Neste being the only oil company on the ranking), it still managed to outperform its blue-chip benchmark, MSCI ACWI (All Country World Index), and other ESG indices. While both the Global 100 and ACWI fell somewhat in 2022, since its inception on February 1, 2005, the Global 100 Index has generated a total investment return of 270.7% compared to 222.1% for ACWI.
Ralph Torrie, Corporate Knights’ research director, says rising oil prices have stimulated growth in renewables, smart buildings, electric vehicles and other climate solutions, including circular economy measures. Indeed, the top-ranked company, Schnitzer Steel, is a metals recycler. “Global 100 companies are providing the products and services that are needed for the sustainability transition and that will form the basis of the emerging 21st-century economy,” says Torrie. “They’ve outperformed the market through these last few tumultuous years.
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2023 Global 100 ranking table
2023
G100 Rank2022
G100 RankCompanyHQ LocationCarbon Productivity% Non-Male Board Directors% Sustainable Revenue% Sustainable InvestmentFinal GradeClimate Commitments
115Schnitzer Steel Industries IncPortland, U.S. $15,928 50%100%100%A+
21Vestas Wind Systems A/SAarhus, Denmark $222,113 42%100%100%A1.5°C, SBTi
310Brambles LtdSydney, Australia $156,386 40%100%100%A1.5°C, SBTi
4Brookfield Renewable Partners LPHamilton, Bermuda $21,806 33%99%100%A
53Autodesk IncSan Francisco, U.S. $456,489 45%93%43%A1.5°C, SBTi
619Evoqua Water Technologies CorpPittsburgh, U.S. $25,868 33%100%100%ASBTi
7*17Stantec IncEdmonton, Canada $95,950 33%53%94%A-1.5°C, SBTi
7*4Schneider Electric SERueil-Malmaison, France $142,877 50%71%68%A-
8Siemens Gamesa Renewable Energy SA Zamudio, Spain $514,578 30%100%100%A-1.5°C, SBTi
9Taiwan High Speed Rail CorpTaipei, Taiwan $7,051 23%100%100%A-
109Dassault Systèmes SEVélizy-Villacoublay, France $498,736 50%68%40%A-1.5°C, SBTi
1242Xinyi Solar Holdings Ltd Wuhu, China $84311%100%100%A-
137Ørsted A/SFredericia, Denmark $5,301 50%66%99%A-1.5°C, SBTi
1411Sims LtdMascot, Australia $45,238 50%100%100%A-
1521Banco do Brasil SABrasília, Brazil $623,504 38%24%A-1.5°C, SBTi
16Rockwool A/SHedehusene, Denmark $2,350 50%85%70%A-SBTi
1712Johnson Controls International PLCCork, Ireland $35,632 27%54%61%A-1.5°C, SBTi
182Chr Hansen Holding A/SHørsholm, Denmark $43,041 50%20%97%B+1.5°C, SBTi
19Kone OyjEspoo, Finland $734,717 38%67%7%B+SBTi
2018Cascades IncKingsey Falls, Canada $4,198 50%92%80%B+SBTi
218Atlantica Sustainable Infrastructure PLCBrentford, U.K.$59625%84%91%B+SBTi
2214McCormick & Company IncHunt Valley, U.S. $65,393 36%49%7%B+1.5°C, SBTi
2335Novozymes A/SBagsvaerd, Denmark $8,853 27%53%11%B+1.5°C, SBTi
2425Iberdrola SABilbao, Spain $3,712 43%72%85%B+1.5°C, SBTi
2584BT Group PLCLondon, U.K. $41,583 42%57%38%B+1.5°C, SBTi
2636Alphabet IncMountain View, U.S. $38,910 27%89%6%B+SBTi
2745Vitasoy International Holdings LtdHong Kong, China $8,863 18%91%100%B+
285City Developments LtdSingapore, Singapore $19,968 22%73%76%B+1.5°C, SBTi
2924Neste OyjEspoo, Finland $9,381 33%39%71%B+
3033Ecolab IncSaint Paul, U.S. $30,832 42%71%53%B+1.5°C, SBTi
3112Kering SAParis, France $978,971 57%39%25%B1.5°C, SBTi, FCCA
3220Beijing Enterprises Water Group Ltd Hong Kong, China $4,526 7%74%100%B
33ASM International NVAlmere, Netherlands $98,187 33%98%63%B1.5°C, SBTi
3472StarHub LtdSingapore, Singapore $41,945 23%47%0%B
3539SunPower CorpRichmond, U.S.22%100%100%BSBTi
3626Xerox Holdings CorpNorwalk, U.S. $51,747 25%75%3%B1.5°C, SBTi
3749Telus Corp Vancouver, Canada $54,239 40%62%12%B1.5°C, SBTi
3878Unilever PLCLondon, U.K. $107,250 42%30%6%B1.5°C, SBTi
3950HP IncPalo Alto, U.S. $398,038 46%61%29%B1.5°C, SBTi
40VMware IncPalo Alto, U.S. $184,723 30%75%0%BSBTi
4155SAP SEWalldorf, Germany $194,558 50%25%0%B1.5°C, SBTi
42BCE Inc Verdun, Canada $68,365 38%48%96%B1.5°C, SBTi
4383Coloplast A/S Humlebaek, Denmark $55,646 33%46%3%B1.5°C, SBTi
4413Koninklijke KPN NVRotterdam, Netherlands $38,857 43%55%100%B1.5°C, SBTi
4581Cogeco Communications IncMontreal, Canada $95,151 56%47%39%B1.5°C, SBTi
46First Solar IncTempe, U.S. $5,218 33%100%100%B-1.5°C, SBTi
4777Puma SEHerzogenaurach, Germany $270,328 33%29%0%B-SBTi, FCCA
4828Cisco Systems IncSan Jose, U.S. $82,189 36%58%0%B-1.5°C, SBTi
4951Atea ASAOslo, Norway $652,546 38%67%3%B-SBTi
5053Konica Minolta IncChiyoda-ku, Japan $28,739 11%52%1%B-SBTi
51Giant Manufacturing Co Ltd Taichung, Taiwan 9%100%100%B-
52Essity ABStockholm, Sweden $5,115 42%48%39%B-1.5°C, SBTi
5332Eisai Co LtdBunkyo-ku, Japan $103,312 9%33%24%B-1.5°C, SBTi
54ERG SpAGenoa, Italy $1,941 42%64%96%B-1.5°C, SBTi
5543Sprouts Farmers Market IncPhoenix, U.S.25%28%14%B-SBTi
5675CapitaLand Investment LtdSingapore, Singapore $10,348 27%38%41%B-SBTi
57Sino Land Co Ltd Hong Kong, China $13,753 0%49%1%B-1.5°C, SBTi
58Severn Trent PLC Coventry, U.K. $5,357 56%39%72%B-1.5°C, SBTi
5990Intesa Sanpaolo SpATurin, Italy $375,162 37%12%B-1.5°C, SBTi, NZBA
6079Gildan Activewear IncMontreal, Canada $7,843 30%39%1%B-SBTi
6167Sanofi SAParis, France $86,211 38%20%13%B-1.5°C, SBTi
62Swatch Group AGBiel, Switzerland $66,638 33%50%49%B-
6346Samsung SDI Co LtdYongin, South Korea $10,422 14%81%57%C+
64Yadea Group Holdings Ltd Wuxi, China $282,774 13%100%100%C+
6595Telefonaktiebolaget LM EricssonStockholm, Sweden $151,002 23%34%100%C+1.5°C, SBTi
6682Adidas AGHerzogenaurach, Germany $257,999 38%35%0%C+SBTi, FCCA
6754Hewlett Packard Enterprise CoSpring, U.S. $170,695 36%50%20%C+1.5°C, SBTi
68KB Financial Group Inc Seoul, South Korea $132,305 22%5%C+SBTi, NZBA
69Maxeon Solar Technologies LtdSingapore, Singapore $5,227 11%100%100%C+
70Orkla ASAOslo, Norway $42,247 36%22%0%C+1.5°C, SBTi
7176BNP Paribas SAParis, France $267,081 47%21%C+SBTi, NZAM, NZAO, NZBA
72Svenska Handelsbanken AB Stockholm, Sweden $1,448,025 54%2%C+NZBA, SBTi
7348Apple IncCupertino, U.S. $6,309,148 33%71%0%C+1.5°C, SBTi
7469Kesko OyjHelsinki, Finland $174,412 29%3%11%C+1.5°C, SBTi
7562Quadient SABagneux, France $156,273 33%23%0%C+
76Investec Ltd Sandton, South Africa $125,606 36%5%C+NZBA
7755Sun Life Financial Inc Toronto, Canada $622,072 56%4%C+NZAM
7874Teck Resources Ltd Vancouver, Canada $3,689 29%7%23%C+
79NIO Inc Shanghai, China $160,817 17%96%100%C+
80Ricoh Co LtdOta-ku, Japan $70,664 10%21%42%C+1.5°C, SBTi
8163Henkel AG & Co KgaADüsseldorf, Germany $61,401 44%20%1%C+1.5°C, SBTi, NZAM
8255Storebrand ASALysaker, Norway $89,785,901 50%5%C+1.5°C, SBTi, NZAM, NZAO
83Gilead Sciences IncFoster City, U.S.33%44%0%C+SBTi
8422Sekisui Chemical Co LtdOsaka, Japan $16,577 24%10%41%C+1.5°C, SBTi
8560Commerzbank AGFrankfurt, Germany $353,063 45%6%C+SBTi, NZAM, NZBA
8652Tesla IncAustin, U.S. $91,536 25%100%100%C1.5°C, SBTi
87Beazley PLCLondon, U.K. $3,601,492 45%14%CNZIA
8880Bank of MontrealToronto, Canada $224,613 50%4%CNZAM, NZAO
8957Arçelik ASIstanbul, Turkey $226,657 17%5%3%C1.5°C, SBTi
9098Canadian Tire Corporation Ltd Toronto, Canada $169,655 19%2%1%C
9171National Australia Bank LtdMelbourne, Australia $130,528 33%5%CNZBA
9241IGM Financial Inc Winnipeg, Canada $68,785,497 33%7%C
93Pfizer IncNew York City, U.S. $69,800 33%17%0%C1.5°C, SBTi
9470Nordea Bank AbpHelsinki, Finland $3,537,626 40%3%CNZAM, NZAO, NZBA
95Merck KGaADarmstadt, Germany43%32%20%C-SBTi
96Société Générale SAParis, France $276,944 40%3%C-NZBA, SBTi
9791AstraZeneca PLCCambridge, U.K. $140,130 38%8%0%C-1.5°C, SBTi
9856Koninklijke Philips NVEindhoven, Netherlands $122,236 40%16%0%C-SBTi
99Danaher CorpWashington, D.C., U.S. $79,075 29%16%0%D+
100Novavax IncGaithersburg, U.S.29%12%87%D+
*Indicates a tie as a result of a data correction
Sustainable revenue now makes up half of gross revenue for the Global 100 compared to just 5% for the wider benchmark, while sustainable investment shows a similar trend. For every tonne of carbon they produce, Global 100 companies earn 33 times more revenue than ACWI firms.
But while improved productivity scores for carbon, energy, water and other environmental performance indicators are often collateral benefits of underlying megatrends, such as increasing electrification, energy efficiency and digitization, the improvement in sustainable revenues and investments is generally the result of much more deliberate corporate investment policies and strategic decisions, Torrie says. “Very often, there is visionary leadership from the CEO, and the company has a clear view of the way the world is headed and how to get ahead of it.”
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That doesn’t mean that corporate sustainability leaders don’t have their challenges, though. In the face of Europe’s energy crisis, the Danish government ordered 2020’s top G100 company, wind giant Ørsted, to postpone the shutdown of three of its power station units that use oil and coal as fuel. “We still believe that we, as a society, must phase out the use of gas, oil, and coal as soon as possible, but we’re in the middle of a European energy crisis, and we will, of course, contribute to ensuring the electricity supply to the best of our ability,” Ørsted said in a statement.
All the while, companies outside the Global 100 are starting to catch up. While the average gender diversity of Global 100 boards inched upward slightly to 34%, that figure shot up from 23% to 32% for the broader universe of more than 6,000 companies analyzed for the Global 100. In racial diversity, there has been little improvement on company boards of directors, but there was a slight improvement in executive teams. The Global 100 and ACWI firms are neck and neck on the ratio of taxes paid, and ACWI firms have a slightly smaller gap between CEO to average worker pay.
A fifth of Global 100 companies are U.S.-based, making it the leading country for members of the index, followed by Canada with 11%. However, as a region, Europe still leads the way with 44%, while Asia Pacific hosts 22% of the ranking’s companies.
The leading sectors remain information technology (20%) and financial services (15%). Among the standout results of the rankings, Italian bank Intesa Sanpaolo saw a huge 234% increase in its sustainable revenue ratio thanks to a combination of increased exposure to sustainable social and environmental loans and better disclosure.
In the wake of the COVID-19 pandemic, new entrants to the index included a number of pharmaceuticals groups, such as Merck, Pfizer, Novavax and Gilead Sciences. Chinese electric vehicle maker NIO and its compatriot Yadea, which produces electric bicycles, were also notable entrants, along with two companies from Taiwan: bicycle maker Giant and the Taiwan High Speed Rail Corp. Torrie says the addition of these corporations reflects the improved reporting on environmental, social and governance (ESG) factors from companies in the region.
CLIMATE
COMMITMENTS
1.5˚C
Business Ambition for 1.5˚C
SBTi
Science Based Targets Initiative
FCCA
Fashion Charter for Climate Action
NZAM
Net-Zero Asset Managers Initiative
NZAO
Net-Zero Asset Owners Alliance
NZBA
Net-Zero Banking Alliance
DOWNLOAD FULL RESULTS
Get the complete Excel scorecard for the Global 100 most sustainable companies of 2023
Methodology
Corporate Knights’ 2023 ranking of the world’s 100 most sustainable corporations is based on a rigorous assessment of more than 6,000 public companies with revenue over US$1 billion. All companies are scored on applicable metrics relative to their peers, with 50% of the weight assigned to sustainable revenue and sustainable investment. Nine of the indicators have fixed weights; the rest are assigned weights according to each industry’s relative impact in relation to the overall economy. After quantitatively analyzing data for 25 key performance indicators, using the Corporate Knights methodology, this year’s overall scores were converted to letter grades.
HQ Location
Country in which company is headquartered
Peer Group
Peer group against which company was rated (based on the Corporate Knights Peer Groups)
Peer Group Rank
Company’s ranking in peer group
Carbon Productivity Score
Based on company’s revenue to Scope 1+2 CO2e ratio
% Taxes Paid
Based on company’s cash taxes paid to profit ratio over past five years
CEO–Average Worker Pay Ratio
Ratio of CEO compensation to average worker’s compensation
% Non-Male Board Directors
% of board of directors who are not male
% Sustainable Revenue
% of revenue earned from products and services that are categorized as “clean” under the Corporate Knights Clean Taxonomy
% Sustainable Investment
% of capital expenditures, R&D and acquisitions that are categorized as “clean” under the Corporate Knights Clean Taxonomy
Overall Score
The weighted average percentile rank scores across up to 23 metrics
Awarded to the top company
Above 75%
70% – 75%
65% – 70%
60% – 65%
55% – 60%
50% – 55%
45% – 50%
40% – 45%
35% – 40%
30% – 35%
25% – 30%
Previous Rankings
2022 GLOBAL 100
2021 GLOBAL 100
2020 GLOBAL 100
2019 GLOBAL 100
The post The 100 most sustainable companies are still outperforming in tumultuous times appeared first on Corporate Knights.
Meet the latest Global 100 companies driving the transition to a low-carbon, circular economy
The post The 100 most sustainable companies are still outperforming in tumultuous times appeared first on Corporate Knights.