Every year the Canadian-headquartered firm Corporate Knights (publishing, research) ranks “the world’s most sustainable companies,” from a universe of 4,000 global enterprises with market cap of at least US$2 billion each. The research team applies 14 metrics in its analysis of “corporate sustainability” to evaluate the management and governance of the sustainability journey.
This year’s list was unveiled at the annual meeting of the World Economic Forum in Davos. Among the top 100 “most sustainable companies” are firms headquartered in the USA, the Netherlands, Germany, Switzerland, Norway, Denmark, France, the United Kingdom, Finland, Brazil, and other nations. The firm ranked #1 by Corporate Knights is Siemens (Germany’s giant industrial manufacturer); #2 is Storebrand ASA (Sweden-insurance); and #3, Cisco – IT leader — USA. In the Top 10 rankings, there are two US firms (Cisco and Johnson & Johnson); in the next 10 rankings, there is one (McCormick & Co); and in the next 10 (#20 to #30) there is one – Allergan (healthcare). Overall, the USA had the most companies in the rankings: 19.
Among the key metrics for this important Global 100 ranking by Corporate Knights: the level of executive compensation. The ratio of CEO pay to average worker is considered. This is interesting to note going forward; in 2017 under Dodd-Frank rules (unless the rule is rescinded in some way) American companies will have to start publishing the ratio of CEO pay comparisons to the median worker. The Glassdoor web site in August 2015 stated that this ratio is 204 times (CEO to median pay). That ratio will be reported by US public companies beginning this year.
The Global 100 Most Sustainable Companies list and background information is in our Top Story this week by Forbes staffer Jeff Kauflin, who writes on management and leadership. He’s written for Fast Company and Business Insider in the past.
There is more information at Corporate Knights (“the Magazine for Clean Capitalism”).
Read the Januray 17, 2017 Forbes article: The World’s Most Sustainable Companies 2017