On January 26, 2023, Actu-Environnement published an article titled “The Global 100 Index Confirms Sustainable Companies’ Performance,” highlighting the results of the Global 100 Index developed by Corporate Knights, a media and research center specializing in corporate social responsibility (CSR). This index evaluates the sustainability performance of publicly traded companies with revenue exceeding one billion USD. In 2023, 6,720 companies were assessed across 25 key performance indicators covering resource management, employee management, financial management, sustainable revenue and investments, as well as supplier performance.
This year’s ranking places Schnitzer Steel Industries, a North American steel manufacturing and scrap recycling company, at the top, followed by Danish wind turbine manufacturer Vestas Wind and Australian logistics company Brambles. Among French companies, Schneider Electric, a leader in digital energy and automation solutions, ranks seventh, while software publisher Dassault Systèmes holds the tenth position.
Corporate Knights highlights a positive correlation between these companies’ sustainable activities and their high financial returns. According to their calculations, one dollar invested in an index composed of Global 100 companies on February 1, 2005, would have generated a total return of 270.7%, outperforming the 222.1% return of the MSCI ACWI (All Country World Index). Even in a challenging economic context, marked by the war in Ukraine and rising oil prices, companies like Neste, a Finnish leader in sustainable aviation fuels, managed to outperform the MSCI ACWI.
The Global 100 Index results demonstrate that companies integrating sustainable practices into their operations can not only contribute positively to the environment and society but also deliver competitive financial returns. For investors, it is wise to consider portfolios that include companies recognized for their sustainability performance, such as those listed in the Global 100. This approach enables investors to align financial objectives with a commitment to sustainable development while reducing risks associated with unsustainable practices.
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