In this article, we will be looking at the 25 most environmentally friendly companies in the world. If you don't want to get into details, feel free to skip and directly head to the 5 Most Environmentally Friendly Companies in The World.
Climate change is undeniably one of the most pressing issues of the 21st century, with the global market economy playing a significant role in exacerbating the crisis. The relentless pursuit of economic growth, coupled with industrialization and globalization, has led to an unprecedented increase in greenhouse gas emissions, deforestation, and pollution. These factors have resulted in alarming shifts in our planet's climate system, manifesting in more frequent and severe weather events, rising sea levels, and disrupted ecosystems. The scale and urgency of the problem have necessitated collective action from governments, businesses, and individuals alike.
The recent much-anticipated UN Climate Change 2023: Synthesis Report serves as a stark reminder of the pressing need for bold action to curb the catastrophic effects of global warming that have led to serious weather events, and caused serious problems worldwide for humans and the planet as a whole. With temperatures already having risen 1.1 degrees Celsius since the 19th century, limiting the increase to below 2 degrees, this century seems like an uphill battle. Nonetheless, a path towards a hopeful future exists, provided we are all committed to embarking on this journey together.
The Need of Adapting Environmental Friendly Practices for Companies
Amid the growing urgency to address climate change, consumers and employees are increasingly expecting corporations to contribute by reducing their carbon footprint, and embracing sustainable operations. The newer concept of “corporate sustainability” is gaining traction, companies across sectors have and are transforming their business models in a way to forge a sustainable future to a one that protects planet, people, and profits.
The Role of ESG in Corporate Sustainability
In response to these growing concerns, many companies are now focusing on Environmental, Social, and Governance (ESG) criteria, a framework for evaluation of their impact on the environment, society, and corporate governance practices. By incorporating ESG criteria into their strategies, companies can better address climate change, meet the expectations of stakeholders, and ensure long-term financial benefits. ESG performance has become increasingly significant for investors, as it offers valuable insights into a company's non-financial performance and its potential to succeed in the long run.
According to research conducted by the IBM Institute for Business Value (IBV), 93% of global respondents in 2021 indicated that the pandemic had impacted their perspectives on sustainability. As environmental concerns have grown more pressing, a February 2022 survey of 16,000 global consumers revealed that 51% of respondents now view environmental sustainability as more important than they did a year prior. This change in priorities is further evident in the way consumers make their choices.
IBM's research in 2021 showed that 50% of consumers were open to paying a premium for sustainable brands or products. In the 2022 survey, 49% of respondents reported having actually paid such a premium—an average of 59% more—for products marketed as sustainable, or socially responsible within the past year.
Additionally, in a 2021 Gallup survey of 1,010 U.S. adults, 43% expressed a great deal of worry about global warming, while 22% were fairly worried. Only a small percentage were less concerned, with 18% and 17% worrying just a little or not at all, respectively.
These concerns have a tangible impact on consumer behavior. A 2021 study by consulting firm Simon-Kucher & Partners, which surveyed over 10,000 people across 17 countries, found that 65% of respondents were concerned about global warming, 85% had shifted to buying more sustainable products in the past five years, and 34% were willing to pay a premium for environmentally friendly products.
25 Most Environmentally Friendly Companies In The World
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Our Methodology
We adopted a consensus-based approach to gather information for this article on the 25 most environmentally friendly companies in the world. Extensive research across multiple sources (such as , Corporate Knights (Global 100 ranings) , CDP (The A List), and Just Capital) was conducted to identify prevalent themes and trends related to corporate environmental performance. We then ranked the companies based on the grading by Corporate Knights.
25. BT Group PLC
Grade: B+ve
BT Group, a leading telecommunications company based in London, UK, has achieved a B+ rating for its commitment to environmental stewardship. With a carbon productivity of $41,583, the company's board consists of 42% non-male directors which is considerably a great percentage. BT Group is focused on attaining 57% environmentally considerate revenue, and 38% green investment. The company has pledged to meet the 1.5-Degree Science-Based Target to emphasize its dedication to sustainability.
24. Iberdrola SA
Grade: B+ve
Spanish utility company Iberdrola SA, located in Bilbao, has earned a B+ rating for its dedication to environmentally friendly practices. Focusing on renewable energy, the company has a carbon productivity of $3,712. Iberdrola's board features 43% non-male representation, and the company is devoted to 72% eco-aware revenue, and 85% green investment. Iberdrola has also committed to the 1.5°C target in line with the SBTi.
23. Novozymes A/S
Grade: B+ve
Bagsvaerd-based biotechnology company Novozymes A/S, secures a B+ rating for its environmental commitment. Known for its enzyme and microorganism innovations, the company has a carbon productivity of $8,853. The board comprises 27% non-male directors, and Novozymes A/S is committed to 53% eco-sensitive revenue, and 11% green investment. The company has also made significant climate commitments, including the 1.5°C target and adherence to the SBTi.
McCormick & Company, Incorporated (NYSE:MKC), a global leader in spices and flavor solutions, based in Hunt Valley, U.S., receives a B+ rating for its commitment to eco-aware practices. The company has an impressive carbon productivity of $65,393, and a board with 36% non-male directors. McCormick & Company, Incorporated (NYSE:MKC) is dedicated to generating 49% environmentally responsible revenue, and 7% green investment. To strengthen their climate commitments, the company has pledged to meet the 1.5°C target in line with the SBTi.
Brentford-based, Atlantica Sustainable Infrastructure plc (NASDAQ:AY), a leading operator of renewable energy assets, earns a B+ rating for its environmentally responsible carbon productivity of $596, and its board features 25% non-male representation. Atlantica Sustainable Infrastructure plc (NASDAQ:AY) is focused on achieving 84% environmentally conscious revenue, and 91% eco-friendly investment. The company has made a commitment to the SBTi to further emphasize its dedication to the environment.
20. Cascades Inc
Grade: B+ve
Canadian company, Cascades Inc, based in Kingsey Falls, has acquired a B+ rating for its eco-friendly approach in manufacturing packaging and tissue products. The company has a carbon productivity of $4,198, and a board consisting of 50% non-male directors. Cascades Inc is dedicated to 92% environmentally considerate revenue and 80% green investment, and 1.5 Degree Science-Based Target .
19. Kone Oyj
Grade: B+ve
Kone Oyj, an Espoo-based company specializing in elevators and escalators, holds a B+ rating for its commitment to environmental stewardship. The company showcases a carbon productivity of $734,717, and its board includes 38% non-male representation. Kone Oyj is focused on attaining 67% environmentally mindful revenue and 7% green investment while being a part of the SBTi.
18. Chr Hansen Holding A/S
Grade: B+ve
Danish bioscience company Chr Hansen Holding, headquartered in Horsholm, has earned a B+ rating for its environmentally responsible approach. With a focus on natural solutions, the company has a carbon productivity of $43,041. The board consists of 50% non-male directors, and the company is devoted to 20% eco-aware revenue and 97% green investment. Chr Hansen has made significant climate commitments, including the 1.5°C target and adherence to the SBTi.
An A- rating highlights the dedication of Cork-based Johnson Controls International plc (NYSE:JCI), to responsible practices. As a multinational conglomerate providing building technology solutions, the company has a carbon productivity of $35,632. The board comprises 27% non-male directors, and Johnson Controls International plc (NYSE:JCI) is committed to 54% environmentally responsible revenue and 61% eco-conscious investment. They have also set ambitious climate targets, including the 1.5°C goal and adherence to the SBTi.
16. Rockwool A/S
Grade: A-ve
Rockwool A/S, located in Hedehusene, Denmark, garners an A- rating for its eco-conscious approach. Specializing in stone wool insulation, the company has a carbon productivity of $2,350. Rockwool's board features 50% non-male representation, and they strive for 85% eco-friendly revenue and 70% green investment. The company has joined the SBTi to demonstrate its commitment to the environment.
15. Banco do Brasil SA
Grade: A-ve
Banco do Brasil SA, headquartered in Brasília, has achieved an A- rating for its dedication to sustainable banking practices. With an impressive carbon productivity of $623,504, the bank's board consists of 38% non-male directors. Banco do Brasil SA is committed to 24% feasible revenue, and has also pledged to meet the 1.5°C target in line with the SBTi.
14. Sims Ltd
Grade: A-ve
Mascot-based Sims Ltd has earned an A- rating, demonstrating its commitment to sustainability in the metal recycling industry. The company boasts a carbon productivity of $45,238, and has a board composition with 50% non-male directors. Sims Ltd is steadfast in its pursuit of 100% viable revenue and investment.
13. Ørsted A/S
Grade: A-ve
Danish energy company Ørsted A/S, based in Fredericia, holds a strong A- rating for its sustainable practices. With a focus on renewable energy solutions, Ørsted has a carbon productivity of $5,301. The company's board includes 50% non-male directors, and they are dedicated to attaining 66% revenue and 99% sustainable investment. Ørsted has also made significant climate commitments, including the 1.5°C target and adherence to the SBTi.
12. Xinyi Solar Holdings Ltd
Grade: A-ve
Xinyi Solar Holdings, a leading solar glass manufacturer in Wuhu, China, earns an A- rating through its unwavering commitment to sustainability. The company has a carbon productivity of $843 and a board composition featuring 11% non-male directors. Xinyi Solar Holdings is determined to achieve 100% greener revenue and investment.
11. Dassault Systèmes SE
Grade: A-ve
With an A- rating, the Vélizy-Villacoublay-based Dassault Systèmes SE, showcases its dedication to sustainability. Renowned for developing 3D design software and product lifecycle management solutions, this French company exhibits a remarkable carbon productivity of $498,736. Dassault Systèmes' board comprises 50% non-male directors, and the company is focused on attaining 68% sustainable revenue and 40% sustainable investment. They have also committed to the ambitious 1.5°C target through the SBTi.
10. Taiwan High Speed Rail Corporation
Grade: A-ve
Taipei-based Taiwan High Speed Rail Corp earns a well-deserved A- rating for its commitment to transportation. This company has a carbon productivity of $7,051, and boasts a board with 23% non-male representation. Taiwan High Speed Rail Corp maintains a steadfast commitment to attain 100% eco-friendly revenue and investment.
9. Siemens Gamesa Renewable Energy SA
Grade: A-ve
Originating from Zamudio, Spain, Siemens Gamesa Renewable Energy has made its mark on the sustainability front, acquiring an A- rating. This trailblazing organization, focused on wind energy technology, has achieved an outstanding carbon productivity of $514,578. The composition of its board features 30% non-male directors, and the company is devoted to 100% sustainable revenue and investment. Moreover, Siemens Gamesa has pledged to meet the 1.5°C target in line with the SBTi.
8. Schneider Electric SE
Grade: A-ve
Sharing the seventh spot with Stantec Inc is Schneider Electric SE, a French company based in Rueil-Malmaison. Specializing in energy management and automation solutions, Schneider Electric has a carbon productivity of $142,877. The company's board comprises 50% non-male directors, and they are dedicated to 71% sustainable revenue and 68% sustainable investment.
Edmonton's Stantec Inc. (NYSE:STN), shares the seventh position with an A- grade. As a global design and consulting firm, Stantec has a respectable carbon productivity of $95,950. The company's board includes 33% non-male directors, and they have committed to 53% sustainable revenue and 94% sustainable investment. Stantec Inc. (NYSE:STN) has made significant climate commitments, including the 1.5°C target and adherence to the SBTi.
Evoqua Water Technologies Corp. (NYSE:AQUA), a Pittsburgh-based company, earns its A rating through its dedication to sustainable water solutions. With a carbon productivity of $25,868, Evoqua Water Technologies Corp. (NYSE:AQUA)'s board features 33% non-male directors. The company is committed to achieving 100% environmentally considerate revenue and investment, and it has also joined the SBTi.
