Corporate Knights analyzed companies with at least one billion dollars in revenue, evaluating them based on 25 parameters
First among them is Erg, ranking 28th and also receiving special recognition for completing the green transition
In 2005, when Corporate Knights launched the Global 100 Most Sustainable Corporations in the World ranking, discussing the green economy was quite complex. “Many companies did not publish sustainability reports, standardized performance indicators did not exist, and no one reported the percentage of sustainable revenue or investments,” recalls Toby Heaps, co-founder and CEO of the Canadian company. Today, something has changed; or at least it is beginning to change. Many companies are changing course, allocating an increasing share of their revenues to investments that accelerate the green transition, some more than others. Among them, five Italian companies have secured a place in the latest ranking of the world’s most sustainable companies.
The 5 Most Sustainable Italian Companies
First of all, Erg, is ranked 28th, climbing 26 positions compared to the 2023 ranking. The group led by the Garrone and Mondini families also received the “Pivot price,” a special recognition for completing its transition to low-climate-altering emission models around the middle of last year. It effectively exited the refining sector in 2013, then announced its exit from hydropower in 2022 and from thermal power in 2023. Following is Intesa Sanpaolo, second among Italians and 57th in the global ranking, accompanied by Pirelli (61st), Unicredit (88th), and Assicurazioni Generali (91st). At the top, we find the Australian companies Sims and Brambles and the Danish Vestas Wind Systems.
The 25 Performance Indicators
Corporate Knights analyzed companies with at least one billion dollars in revenue, evaluating them based on 25 parameters, including sustainable revenue and investments, gender diversity, CEO compensation compared to the average employee, and CEO bonuses based on sustainability performance. The 100 companies on the list allocated an average of 55% of their investments to sustainable projects, compared to 17% of the broader universe of publicly traded companies with the same characteristics. In addition, in 2022, they generated 51% of their revenue from sustainable sources (compared to 15% of less green companies). Examining some of the other performance indicators, 35% of the “Global 100” boards are gender-diverse, compared to 25% of other companies. Regarding racial diversity, even the most sustainable companies lag behind (only 13% of boards meet this criterion), but they are still ahead of the broader sample (10%).
The Most Sustainable Companies Yield More
Moreover, as sustainability leaders, the 100 companies on the list have also delivered attractive returns to their shareholders: between February 1, 2005, and December 15, 2023, the “Global 100” recorded a return of 287%, compared to 272% for the MSCI ACWI index and 254% for the Dow Jones Sustainability World Index. “A signal for the laggards,” write the researchers. “Doing well can go hand in hand with doing good. Indeed, an increasing number of investors are demanding greater transparency on data to align investments with their environmental and social commitments. This is especially in reference to climate change and the transition to clean energy. Transition leaders will be rewarded, as the growing crisis pushes governments and companies to reassess their strategic interests and align their plans with a zero-emission world,” they conclude.”
