Davos, Switzerland – Recently recognized as the world’s most credible corporate sustainability ranking, the Global 100 consists of the 100 top-performing stocks worldwide on a range of sector-specific “sustainability” metrics.
“The Global 100 are leading a resource productivity revolution, transforming waste into treasure and doing more with less,” said Corporate Knights CEO Toby Heaps. “They are steering our civilization away from ecological overshoot and back to a place of balance with our planet.”
Canada and the United States led the way in country representation, each with 10 constituents, followed by Australia, Britain and France, each with 9 constituents. Overall, the Global 100 drew companies from 22 countries on six continents.
Corporate Knights uses its flagship Global 100 ranking and the underlying research methodology to explore sustainable investment strategies with investors.
Data for the project was primarily collected from Bloomberg and through direct engagement with the 350 companies that made the project’s shortlist, selected from the project’s starting universe of all global mid and large cap stocks (numbering approximately 4,000).
The Global 100 uses a two-step methodology: First, companies from the starting universe are screened according to their sustainability disclosure practices, financial health, product types and recent legal payouts. Those companies that remain are then scored, relative to their same-sector peers, on a set of key performance indicators (KPIs). A different suite of KPIs is used for companies in each industry, depending on recent reporting trends in each industry group.
“We feel that the sustainability data that flows into our Global 100 research model, once properly cleansed, can contain hidden and statistically robust signals about companies’ future financial performance,” said Doug Morrow, VP Research at Corporate Knights. ”It is a vastly underutilized source of competitive information on Wall Street and in the asset management community worldwide.”