Every year, the Canadian research firm Corporate Knights Inc. unveils the “top 100 sustainable companies of today.” The firm ranks corporations based on their sustainability performance then provides the information to the public to empower markets to foster a healthier world.
The Corporate Knights considers itself ‘the voice for clean capitalism.’ It compiles information on over 8,000 publicly listed companies, which generate annual revenues of over $1bn annually, and makes a green company league table to find the most sustainable businesses.
Last year, the number one company was Danish renewable energy company Ørsted, which held fourth place the year before. It was the first time an energy company received first place. This year, French tech firm Schneider Electric climbed the ladder to first place, and Ørsted got bumped down to second. Last year, Schneider Electric ranked 29th most sustainable corporation on the planet.
The Paris-based company offers technology and energy solutions to help companies meet their climate targets. This year, it assisted hotel group Marriott, retailer Walmart, and steel business ArcelorMittal.
The company is headquartered in France, but it has operations in 100 countries worldwide. There was a surge in the number of companies seeking automated technology to minimize their carbon footprints during the pandemic. Schneider was there.
Jean-Pascal Tricoire, Schneider Electric’s chief executive, said:
At the start of 2020, I feared that people facing a crisis would stop their environmental commitments, but it has been just the contrary. The pandemic has made everyone realize that we are vulnerable to natural events and raised the consciousness around the need to reduce carbon emissions and help fight climate change.
[The second major trend to emerge from the crisis was a shift towards digital technologies and automated systems, which have been the] foundation of Schneider’s business for the last 20 years.
Along with the rising green ambition among the world’s biggest companies, this situation has helped Schneider more than double its market value over the last two years. It’s worth over €70bn (£62bn) now.
According to The Guardian:
Tricoire said the company acts as “doctor and pharmacist” to global companies by diagnosing their sustainability problems and providing the technology to meet their goals.
Tricoire said:
For example, Walmart came to us because they want to be greener. But 90% of the [environmental] footprint of Walmart is with its suppliers. So, they contracted us to work with their thousands of suppliers to help save one gigaton of carbon over the next ten years.
Over 2,000 of Walmart’s suppliers had saved over 230 million tons of carbon by the end of 2020 – nearly 25% of the ten-year target! And it was all thanks to Schneider’s assistance in adopting renewable-based energy systems.
The company now plans to double its current climate commitments between 2021 and 2025. It aims to help its customers save or avoid 800 megatons of carbon emissions. It’s also shooting to generate 80% “green revenues.”
Tricoire said:
[Environmental, social and corporate governance commitments] cannot just be a one-off, and we have reinforced ours every three years. All of us – companies, governments, individuals – can contribute to make the world greener and more inclusive.
The Corporate Knight researchers determine ranking by assessing each company individually using 21 key performance indicators. Factors such as energy productivity, waste generation, water use, carbon emissions, women in senior executive positions, and taxes paid are analyzed and rated.
The firm found that nearly 75% of Schneider’s investment is focused on green innovation and 70% of its revenue comes from sustainable solutions. The company also performs strongly in resource productivity and safety and racial and gender diversity.
Nine of the Global 100 companies (including Schneider) are French. France was the European leader in company rankings. Germany came in second with seven of the top 100 companies. The United States had the most – 20 companies in the index – followed by Canada with 12.
Ironically, the country that claims to be a global leader in climate action, the United Kingdom, had only five companies in the league table – none of them were in the top ten. Atlantica Sustainable Infrastructure was Britain’s highest-ranking company, which took 12th place.
