His Royal Highness The Prince of Wales participating in today's release of annual ranking of World's 100 Most Sustainable Corporations

TORONTO, Jan. 25, 2021 /CNW/ - Corporate Knights 17^th annual ranking of the world's 100 most sustainable corporations is being released this morning, at a virtual event opening with live remarks from His Royal Highness The Prince of Wales. The ranking is based on a rigorous assessment of 8,080 companies with more than US$1 billion in revenues. According to the Toronto-based sustainable-business research company's latest analysis, the world's most sustainable corporation in 2021 is Schneider Electric SE, a French company providing digital energy and automation solutions. 

In recent decades, Schneider has shifted its focus to data centers; storage and other distributed energy resources; and smart solutions that advance electrification, energy efficiency and renewability. It now earns 70% of its revenue from, and directs 73% of its investments toward, sustainable solutions. Schneider also performs strongly in racial and gender diversity and in resource productivity and safety.

The collective performance of this year's ranked companies further demonstrates the reality that forward-looking companies have maintained (if not enhanced) their sustainability commitment in the face of the daunting challenge of building back from the disruption of the pandemic.

"We are honoured and grateful to be ranked number one by Corporate Knights," said Jean-Pascal Tricoire, Schneider Electric's Chairman and Chief Executive Officer. "It is a major encouragement for our teams and partners, and a great recognition of more than 15 years of engagement to make our company and the world greener and more inclusive. Sustainability is a journey that we accomplish with our people, partners, suppliers, customers and communities where we operate. This recognition goes also to all of them."

Analysis of financial performance and corporate longevity continues to demonstrate that the most sustainable companies tend to both outperform and outlast. From its inception on February 1, 2005, to December 31, 2020, the Global 100 Index¹ has generated a total investment return of 263% compared to 220% for the MSCI ACWI (see Appendix A below for long-term trend). The average age of a Global 100 company in 2021 is 74 years, while the average age of a company in the MSCI ACWI is 53 years.

"This year's analysis and results strongly suggest that the world's leading companies learned a lesson from the aftermath of the 2008/09 financial crisis," says Toby Heaps, CEO of Corporate Knights. "Rather than de-prioritizing sustainability when confronted with a major shock, they've recognized that it will drive the success of recovery strategies."

This year's ranking was based on several new performance indicators that reflect social concerns highlighted by both the pandemic and the Black Lives Matter movement. They include paid sick leave, executive and board racial diversity, and clean investments (capital expenditures, R&D and acquisitions). On average, one-third of investments on the part of Global 100 companies are clean, in contrast to less than one-quarter for their peers, while the percentage of Global 100 companies that offer at least 10 days of paid sick leave (86%) is more than double that of their peers on the MSCI ACWI (41%).

Global 100 companies earn on average 41% of their revenues from products or services aligned with the UN Sustainable Development Goals, compared to just 8% for their peers.

The 20 American and 13 Canadian companies were the largest national contingents in the 2021 Global 100, although in regional terms Europe dominated, occupying 41 positions in this year's ranking. The Nordic countries in particular continued to punch notably above their weight. New entrants on the Global 100 from Turkey and India reflect a growing and potentially transformative Asian presence among the world's most sustainable companies.

Normally announced at an event concurrent with the World Economic Forum in Davos, this year's Global 100 launch include a virtual CEO roundtable discussion, focusing on the imperative for businesses to speed up the race to a net-zero-emission economy. This event takes place 2–3PM Central European Time with opening remarks from Prince Charles, and the involvement of Sanda Ojiambo (head of the United Nations Global Compact) and the CEOs of four perennial Global 100 companies: McCormick & Co, Natura & Co, Ørsted and Schneider Electric. Free registration is available at tinyurl.com/2021G100.

Twenty-eight of the Global 100 companies have signed the Business Ambition for 1.5°C commitment, an initiative by a global coalition of UN agencies and business leaders to prevent the worst impacts of climate change.

For full Global 100 rankings and methodology details, please see corporateknights.com/global100

About Corporate Knights: Corporate Knights Inc. includes the sustainable-business magazine Corporate Knights and a research division that produces rankings and financial product ratings based on corporate sustainability performance.

 Appendix I: 2021 Global 100 Most Sustainable Corporations in the World

¹ Calculated by Solactive and available via Bloomberg and Refinitiv, this index is composed of Global 100–ranked companies. It is equally weighted and mirrors the sector composition of the MSCI ACWI on a percentage basis.

SOURCE Corporate Knights Inc.