The 100 most sustainable corporations in the world
The Corporate Knights, a magazine about sustainability, have been publishing for the last 10 years a global ranking of the 100 most sustainable corporations in the world.
Every year at the World Economic Forum in Davos, Switzerland, they release the annual list of the 100 most sustainable companies.
They start all publicly traded companies in the world with a market cap of at least $2 billion. Then, they screen them based on their sustainability disclosure. Next, they are all screened based on what’s known as the Poitroski F-score, which has nine different tests for financial stability and profitability. They measure things like net profit, operating cash flow, long-term debt and more.
The third screen is the product category where tobacco stocks and weapons manufacturing stocks are eliminated.
The fourth screen is for sanctions. They evaluate a company’s history of environmental related fines and penalties.
The top 100 companies are ranked and scored. This year, two US-based companies, Biogen and Allergan, topped the list, being ranked Nos. 1 and 2, respectively. Other US-based stocks that made it included, Johnson and Johnson, Coca-Cola, General Mills, General Electric, Campbell Soup, Cisco, Intel and others.
If you’re interested in socially responsible investing, the Global 100 might be a good starting point for some investment ideas in sustainable equities.
For more information about this ranking, click here http://www.corporateknights.com/reports/2015-global-100/