What’s good for the world can be good for investors

What’s good for the world can be good for investors

What’s good for the world can be good for investors

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
environmental or social impacts as % of total revenues)

26%

9%

% of women on boards

27%

19%

Executive pay linked to sustainability measures (% of
companies having such a link)

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.

 


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