A new report from Corporate Knights reveals the 100 most sustainable companies globally, with France and Denmark topping the European leaderboard. The annual Global 100 index ranks firms based on a combination of environmental, social, and governance (ESG) indicators, highlighting the increasing importance of sustainability in business.

France and Denmark Lead Sustainability Rankings

Schneider Electric, a French electrical equipment firm, has been named the world’s most sustainable company for 2023. The ranking, compiled from an assessment of 8,359 companies with over $1 billion in revenue, factors in carbon emissions, water usage, sustainable investments, and social issues like gender parity and worker pay.

In addition to French companies, the list features several firms from Denmark and Germany. Outside the EU, Australia is well-represented in the top ranks, with Sims Waste Management and Brambles Furniture in the second and fourth positions, respectively.

Sustainable Investments and Growing Revenues

The Global 100 companies continue to prioritize sustainable investments. In 2023, 58% of their capital expenditures, research, and development focused on green initiatives. This is significantly higher than the 15% average for other large companies. This sustainability focus is driving revenue growth. Sustainable revenues for major global public companies have grown rapidly. They have grown twice as fast as other revenue streams in recent years.

Despite this focus, the Global 100 faced challenges in 2024. They had lower investment returns compared to the MSCI ACWI index. Several factors contributed to this. These include a high-interest rate environment and fewer US firms in the ranking. Exclusions of certain sectors, like weapons stocks, also played a role. However, Corporate Knights expects a rebound in 2025.

This continued commitment to sustainability positions the Global 100 for long-term success. They are leaders in the transition to a greener economy. This benefits both the environment and their bottom line. SuperMetalPrice will continue to monitor the performance of these companies.