Sustainable corporate performance suggests better returns
The case for investors choosing stocks in corporations with strong sustainability and social responsibility values has been highlighted in a new report.
The 15th annual Corporate Knights report has been unveiled at the Davos World Economic Forum and supports the mounting case that sustainable corporate performance is consistent with equal or better returns for investors and greater corporate longevity.
The report compares financial performance and corporate longevity analysis of the Global 100 companies against the MSCI All Country World Index and is compiled by Toronto-based sustainable business magazine Corporate Knights.
"The Global 100 companies show that doing what is good for the world can also be good for financial performance," said Toby Heaps, the firm’s CEO.
The report follows rigorous analysis of some 7,500 companies with US$1B+ in revenues.
|
Metric |
Global 100 |
MSCI ACWI |
|
CEO-to-average-worker-pay ratio |
76:1 |
140:1 |
|
Cash-taxes-paid-to-profit ratio |
18% |
16% |
|
Carbon productivity (revenue-to-tonne-C02e ratio) |
$238k |
$157k |
|
Clean revenues (from products or services with beneficial |
26% |
9% |
|
% of women on boards |
27% |
19% |
|
Executive pay linked to sustainability measures (% of |
58% |
19% |
The world's most sustainable corporation in 2019 is Chr. Hansen, a Danish bioscience company, which uses "good bacteria" to provide natural means for preserving food, protecting plants and reducing overreliance on antibiotics in livestock farming.
An impressive 81% of its revenues are categorized by Corporate Knights as "clean" and it has strong representation of women on its board and in its executive ranks. The company also now links executive compensation to corporate diversity targets.
Canada’s top-ranked firm is Bombardier, 22nd in the rankings, while Teck Resources, Sun Life Financial, Suncor Energy, Canadian Tire, and Celestica are also in the top 100.
|
Rank 2018 |
Full company name |
Country |
Peer Group |
|
1 |
Chr. Hansen Holding A/S |
Denmark |
Food or other Chemical Agents |
|
2 |
Kering SA |
France |
Apparel and Accessories |
|
3 |
Neste Corporation |
Finland |
Petroleum Refineries |
|
4 |
Orsted |
Denmark |
Wholesale Power |
|
5 |
GlaxoSmithKline plc |
UK |
Biopharmaceuticals |
|
6 |
Prologis, Inc |
U.S |
Real Estate Investment Trusts |
|
7 |
Umicore |
Belgium |
Primary Metals Products |
|
8 |
Banco do Brasil S.A |
Brazil |
Banks |
|
9 |
Shinhan Financial Group Co |
South Korea |
Banks |
|
10 |
Taiwan Semiconductor |
Taiwan |
Semiconductor Equipment |
|
11 |
Pearson PLC |
UK |
Personal Professional Services |
|
12 |
Outotec Oyj |
Finland |
Machinery Manufacturing |
|
13 |
McCormick & Company |
U.S |
Food and Beverage Production |
|
14 |
Cisco Systems, Inc |
U.S |
Communications Equipment |
|
15 |
Natura Cosmeticos S.A |
Brazil |
Personal Care and Cleaning |
|
16 |
ERG S.p.A |
Italy |
Wholesale Power |
|
17 |
Analog Devices, Inc |
U.S |
Semiconductor Manufacturing |
|
18 |
Novartis AG |
Switzerland |
Biopharmaceuticals |
|
19 |
CEMIG |
Brazil |
Electric Utilities |
|
20 |
Sanofi |
France |
Biopharmaceuticals |
|
21 |
Ericsson |
Sweden |
Communications Equipment |
|
22 |
Bombardier Inc |
Canada |
Aerospace and Defense |
|
23 |
UPM-Kymmene Oyj |
Finland |
Forestry and Paper Products |
|
24 |
BNP Paribas SA |
France |
Banks |
|
25 |
City Developments Limited |
Singapore |
Real Estate Invest.+ Services |
|
26 |
bioMerieux SA |
France |
Diagnostics and Drug Delivery |
|
27 |
Royal KPN NV |
Netherlands |
Wireless and Wireline Telecom |
|
28 |
Siemens AG |
Germany |
Industrial Conglomerates |
|
29 |
Valeo SA |
France |
Consumer Vehicles and Parts |
|
30 |
LG Electronics Inc |
South Korea |
Computer Hardware |
|
31 |
Amundi SA |
France |
Investment Services |
|
32 |
Ecolab Inc |
U.S |
Food or other Chemical Agents |
|
33 |
CapitaLand Limited |
Singapore |
Real Estate Invest.+ Services |
|
34 |
Vestas Wind Systems A/S |
Denmark |
Electrical Equipment + Power |
|
35 |
ING Groep NV |
Netherlands |
Banks |
|
36 |
Electrolux AB |
Sweden |
Household Appliances and Furn. |
|
37 |
Teck Resources Limited |
Canada |
Metal Ore Mining |
|
38 |
Dassault Systemes SA |
France |
Software |
|
39 |
HP Inc |
U.S |
Computer Peripherals |
|
40 |
Comerica Incorporated |
U.S |
Banks |
|
41 |
Sun Life Financial Inc |
Canada |
Insurance |
|
42 |
VERBUND AG |
Austria |
Wholesale Power |
|
43 |
Kone Oyj |
Finland |
Machinery Manufacturing |
|
44 |
Suncor Energy Inc |
Canada |
Integrated Oil and Gas |
|
45 |
ABB Ltd |
Switzerland |
Industrial Conglomerates |
|
46 |
Eli Lilly and Company |
U.S |
Biopharmaceuticals |
|
47 |
Nordea Bank AB |
Sweden |
Banks |
|
48 |
Autodesk, Inc |
U.S |
Software |
|
49 |
Metso Oyj |
Finland |
Machinery Manufacturing |
|
50 |
AstraZeneca PLC |
UK |
Biopharmaceuticals |
|
51 |
KeyCorp |
U.S |
Banks |
|
52 |
Alphabet Inc |
U.S |
Internet and Data Services |
|
53 |
MetLife, Inc |
U.S |
Insurance |
|
54 |
Industria de Diseno Textil |
Spain |
Apparel and Accessories |
|
55 |
Danaher Corporation |
U.S |
Medical Devices |
|
56 |
Halma plc |
UK |
Machinery Manufacturing |
|
57 |
Total SA |
France |
Integrated Oil and Gas |
|
58 |
Novo Nordisk A/S |
Denmark |
Biopharmaceuticals |
|
59 |
PNC Financial Services |
U.S |
Banks |
|
60 |
Schneider Electric SE |
France |
Industrial Conglomerates |
|
61 |
Iberdrola SA |
Spain |
Wholesale Power |
|
62 |
Alstom SA |
France |
Transportation Equipment |
|
63 |
Bank of America Corp |
U.S |
Banks |
|
64 |
Nokia Oyj |
Finland |
Communications Equipment |
|
65 |
Unilever PLC |
UK |
Personal Care and Cleaning |
|
66 |
Ingersoll-Rand Plc |
U.S |
Machinery Manufacturing |
|
67 |
Commerzbank AG |
Germany |
Banks |
|
68 |
Acciona SA |
Spain |
Facilities and Construction |
|
69 |
Tesla Inc |
U.S |
Consumer Vehicles and Parts |
|
70 |
Itron, Inc |
U.S |
Machinery Manufacturing |
|
71 |
Westpac Banking Corp |
Australia |
Banks |
|
72 |
ENGIE Brasil Energia S.A |
Brazil |
Wholesale Power |
|
73 |
Eisai Co., Ltd |
Japan |
Biopharmaceuticals |
|
74 |
National Australia Bank |
Australia |
Banks |
|
75 |
AAK AB |
Sweden |
Food and Beverage Production |
|
76 |
Lloyds Banking Group plc |
UK |
Banks |
|
77 |
OSRAM Licht AG |
Germany |
Electrical Equipment + Power |
|
78 |
Takeda Pharmaceutical Co |
Japan |
Biopharmaceuticals |
|
79 |
UCB S.A |
Belgium |
Biopharmaceuticals |
|
80 |
Intesa Sanpaolo SpA |
Italy |
Banks |
|
81 |
Workday, Inc |
U.S |
Software |
|
82 |
Yokogawa Electric Corp |
Japan |
Industrial Conglomerates |
|
83 |
Samsung SDI Co., Ltd |
South Korea |
Electrical Equipment + Power |
|
84 |
adidas AG |
Germany |
Apparel and Accessories |
|
85 |
Campbell Soup Company |
U.S |
Food and Beverage Production |
|
86 |
Advantech Co., Ltd |
Taiwan |
Computer Hardware |
|
87 |
ANSYS, Inc |
U.S |
Software |
|
88 |
Kesko Oyj |
Finland |
Food and Beverage Retail |
|
89 |
Sekisui Chemical Co., Ltd |
Japan |
Other Materials |
|
90 |
VMware, Inc |
U.S |
Software |
|
91 |
Canadian Tire Corporation |
Canada |
General Merchandise Retail |
|
92 |
Kao Corp |
Japan |
Personal Care and Cleaning |
|
93 |
Accenture Plc |
Ireland |
Technology Consulting Services |
|
94 |
Celestica Inc |
Canada |
Manufacturing Equipment |
|
95 |
Toyota Motor Corp |
Japan |
Consumer Vehicles and Parts |
|
96 |
Konica Minolta, Inc |
Japan |
Computer Peripherals |
|
97 |
Spectris plc |
UK |
Machinery Manufacturing |
|
98 |
L'Oreal SA |
France |
Personal Care and Cleaning |
|
99 |
Bayerische Motoren Werke |
Germany |
Consumer Vehicles and Parts |
|
100 |
Panasonic Corporation |
Japan |
Computer Hardware |
SOURCE Corporate Knights Inc.
