The 2022 Clean200 list was released by As You Sow, a nonprofit promoting environmental and social corporate responsibility. This list showcases the world’s top-ranked “clean” companies based on their “total green energy revenue.” Here are the household-name companies and lesser-known businesses on the list, and tips for following in their sustainable footsteps.
Sitting atop the list of 200 companies are Apple Inc., Alphabet Inc., Intel Corp., Taiwan Semiconductor Manufacturing Company (TSMC), Cisco Systems, Tesla Inc., Cisco Systems Inc., HP Inc., Schneider Electric SE and Siemens AG.
The list comprises “the largest 200 public companies ranked by green energy revenues.” The report spans July 1, 2016, through Jan. 31, 2022.
The report included a letter from Larry Fink, CEO of BlackRock – the world’s largest investment company. “It’s been two years since I wrote that climate risk is investment risk,” the excerpt read. “And in that short period, we have seen a tectonic shift of capital. Sustainable investments have now reached $4 trillion. Actions and ambitions towards decarbonization have also increased. This is just the beginning – the tectonic shift towards sustainable investing is still accelerating. Whether it is capital being deployed into new ventures focused on energy innovation, or capital transferring from traditional indexes into more customized portfolios and products, we will see more money in motion. Every company and every industry will be transformed by the transition to a net zero world.”
Primarily based on data from Corporate Knights Research, the Clean200 list shows that “58% of revenues earned by Clean200 companies are classified as clean.” That’s a 19% increase from the equivalent value in 2021.
Additionally, the current list of Clean200 companies has generated a total return of 107.09%. This number is slightly higher than the total return gross figures for the MSCI ACWI broad market index (103.15%). It’s also much higher than the MSCI ACWI/Energy Index fossil fuel index (31.67%).
The Clean200 features companies from 35 nations across the globe. The United States is the most represented country with 52 companies. Canada followed with 18 companies and China came in third with 16 businesses.
While the world’s major financial powerhouses naturally top the list, smaller European markets have joined the roster. Countries like Finland (6), Switzerland (3) and Ireland (6) are represented, along with their bigger counterparts in France (12), Germany (9) and Spain (6). Europe made up a large portion of the Clean200 with 75 companies.
According to industry type, 28.5% (57 firms) of the list’s entries are industrial. Information technology makes up 24% of the list with 48 companies, and utilities make up 14% of the list with 28 companies.
The methodology behind the Clean200 relies on the Corporate Knights Clean Revenue database. This methodology goes beyond just companies that have adopted energy efficiency measures, green energy, and zero-emission and hybrid vehicles. It also includes companies that make ecologically and socially sound investments.
Only businesses with more than 10% in clean energy revenue are on the list. Furthermore, the list also “excludes all oil and gas companies, all utilities that generate less than 50 percent of their power from green sources, the top 100 coal companies measured by reserves, the top 100 oil and gas companies as measured by reserves, as well as all fossil fuel companies, majority fossil-fired utilities, pipeline and oil field services companies, and other fossil fuel-related companies.”
Additionally, the roster excludes manufacturers of weapons, such as handheld guns and nuclear weapons. Certain manufacturers of beef, rubber, timber, soy, paper, pulp and palm oil also don’t qualify for inclusion. Activities that could disqualify a company from inclusion include deforestation, fossil fuel financing and attempts to block climate policy. These screens resulted in the exclusion of 70 organizations.
If massive corporations can uphold green practices, so can your small business. Utilizing clean resources is excellent for your bottom line, as most customers prefer sustainable products.
Here are just a few of the many ways to make your business more sustainable:
Andrew Martins contributed to the writing and reporting in this article.