Mapped: Where Are the World’s Most Sustainable Companies?

Where Are the World’s Most Sustainable Companies?

Everywhere you look, sustainability is permeating social, political, and business agendas.

In recent years, an impressive number of companies have stepped up to take a more active role in shaping a more sustainable future—not just in the environmental sense, but also by taking social and governance factors into consideration.

Today’s chart draws from the Corporate Knights Global 100, an annual ranking of the 100 most sustainable companies, to visualize exactly how many are located in each corner of the world. The companies on the list are clear winners not only because they aim to leave the world a better place, but because their stocks have also outperformed the market on average.

How is Corporate Sustainability Measured?

The researchers rely on readily available data for all publicly-listed companies with at least $1 billion in gross revenue (in PPP), as of the financial year 2018.

Companies are then screened for several key performance indicators (KPIs), including but not limited to the following categories and examples:

  • Resource management
    Example: GHGs and other emissions such as NOx and SOx emissions
  • Financial management
    Example: Innovation capacity, or the percentage of R&D spending against total revenue
  • Employee management
    Example: Women in executive management and/or on boards
  • Clean revenue
    Example: The percentage of total revenue derived from “clean” products and services

The concentration of the most sustainable companies also varies greatly depending on where you look. Here’s a closer view of every region.

Europe: 49/100 Sustainable Companies

Europe is front-and-center in the tidal shift towards more sustainable business, driven by far-reaching regulations. With this in mind, it’s perhaps not surprising to see that Europe is a hotbed of activity.

Nearly half the world’s most sustainable companies are located in Europe. France paves the way with nine sustainable companies in the ranking, followed by Finland with six companies of 100.

RankCompanyIndustryCountry
#1Ørsted A/SWholesale Power🇩🇰 Denmark
#2Chr. Hansen Holding A/SFood and other chemical agents🇩🇰 Denmark
#3Neste OyjPetroleum Refineries🇫🇮 Finland
#6Novozymes A/SSpecialty and Performance Chemicals🇩🇰 Denmark
#7ING Groep NVBanks🇳🇱 Netherlands
#8Enel SpAWholesale Power🇮🇹 Italy
#11Osram Licht AGElectrical Equipment and Power Systems🇩🇪 Germany

Denmark’s Ørsted A/S claims the top of the leaderboard in 2020. Within a decade, the company has completely transformed its business model—shifting away from the Danish Oil and Natural Gas (DONG) company into a pure play renewable energy company. The company recognized the importance of this transition:

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.

—Henrik Poulsen, CEO

Just 10 years ago, DONG was 85%-fossil fuel based, and only 15%-renewables based. Today, Ørsted has flipped these proportions. The company attributes its dramatic transformation to the societal demand for green energy, and aims to be carbon-neutral by 2025.

North America: 29/100 Sustainable Companies

In this region, the U.S. alone is responsible for 17 of the top 100 sustainable companies in the world. What’s more, of the 28 new companies to the 2020 Ranking, Canada is the homebase for nine of these entrants.

RankCompanyIndustryCountry
#4Cisco Systems IncCommunications Equipment🇺🇸 U.S.
#5Autodesk IncSoftware🇺🇸 U.S.
#10Algonquin Power & Utilities CorpElectric Utilities🇨🇦 CA
#15Hewlett Packard Enterprise CoComputer Hardware🇺🇸 U.S.
#16American WaterWater Utilities🇺🇸 U.S.
#22McCormick & CompanyFood and Beverage Production🇺🇸 U.S.
#26Prologis IncReal Estate Investment Trusts (REITs)🇺🇸 U.S.
#44Bombardier IncAerospace and Defense Manufacturing🇨🇦 CA

Cisco Systems comes in fourth worldwide, partly as a result of its clean revenues worth a stunning $25 billion. Not far behind is Autodesk, which rose an impressive 43 places since 2019. The main factor behind this leap? The software corporation now operates its cloud platforms using 99% renewable energy.

Asia: 16/100 Sustainable Companies

Over in Asia, Japan is a clear leader, boasting six sustainable companies in the list. Interestingly, the companies are from a wide range of industries, from computers (Panasonic) to cars (Toyota).

RankCompanyIndustryCountry
#12Sekisui ChemicalsOther Materials🇯🇵 Japan
#25Taiwan SemiconductorSemiconductor Equipment and Services🇹🇼 Taiwan
#36City Developments LtdReal Estate Investment and Services🇸🇬 Singapore
#43Shinhan Financial GroupBanks🇰🇷 South Korea
#50AdvantechComputer Hardware🇹🇼 Taiwan
#63Capitaland LimitedReal Estate Investment and Services🇸🇬 Singapore
#68Takeda PharmaceuticalBiopharmaceuticals🇯🇵 Japan
#72Konica MinoltaComputer Peripherals and Systems🇯🇵 Japan

Japanese plastics manufacturer Sekisui Chemicals comes in first in Asia, after an immense improvement of 77 positions in just one year. The company builds environmentally-friendly housing, and 28% of its revenue aligns with the UN’s Sustainable Development Goals (SDGs).

Rest of the World: 6/100 Sustainable Companies

There are a few notable mentions in other regions, too. Brazil’s Banco do Brasil remains in the top ten list, and is one of the three most sustainable companies in all of South America.

RankCompanyIndustryCountry
#9Banco do Brasil SABanks🇧🇷 Brazil
#19CEMIGElectric Utilities🇧🇷 Brazil
#30Natura Cosmeticos SAPersonal Care and Cleaning Products🇧🇷 Brazil
#42National Australia Bank LtdBanks🇦🇺 Australia
#51Standard Bank Group LtdBanks🇿🇦 South Africa
#75Westpac Banking CorpBanks🇦🇺 Australia

More than half of the companies in these remaining regions are banks. Incidentally, financial services are the biggest group in the Global 100 overall.

The Best of Both Worlds

As it turns out, you can have your cake and eat it, too.

Altogether, the Global 100 most sustainable companies have consistently outperformed*, and outlasted the average company in the MSCI ACWI (All Country World Index):

MetricG100MSCI ACWI
Annualized Return7.3%7.0%
Average Company Age83 years49 years

*Between 2005-Dec. 31 2019

Corporate sustainability is a significant driving force for urgent climate action, and the sustainable companies on this list acknowledge the triple bottom line of not just making profit, but also creating a lasting impact on people and the planet.

Thinking about what you entered……..
You are in!

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