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, with 58% of their capital expenditures, research, and development focused on green initiatives in 2023—significantly higher than the 15% average for other large companies. This focus on sustainability is paying off, as sustainable revenues for major global public companies have grown twice as fast as other revenue streams in recent years.

Despite the strong sustainability focus, Corporate Knights noted that the Global 100 had lower investment returns compared to the MSCI ACWI index in 2024. Factors such as a high-interest rate environment, fewer US firms in the ranking, and exclusions of certain sectors like weapons stocks contributed to this performance dip. However, Corporate Knights expects the Global 100 to rebound in 2025.