List of Clean 200 companies captures the green transition in full flight

Given the recent backlash against environmental, social and governance (ESG) investing in the U.S., along with ongoing corporate greenwashing and fossil-fuel disinformation, it’s sometimes hard to tell if society is moving forward or slipping back. How do you measure a global transition that is so massive – and yet hard to see with the naked eye?

You follow the money, of course. With the right financial data, the clean economy comes in clear – and the numbers show that it’s developing momentum.

Released by Corporate Knights and California-based shareholder advocates As You Sow on February 15, the 11th Clean200 ranking captures the green transition in full flight, cataloguing those public companies that are earning the most from sustainable sources. Crucially, it also signals to investors – venture capitalists, institutions and individuals alike – that a wide range of companies are capitalizing on new-economy principles without sacrificing annual returns or opportunities for growth.

Between July 1, 2016, and January 15, 2024, Clean200 companies generated a total return of 103.5%. Although they underperformed the MSCI ACWI broad market index, which grew 114.4%, the Clean200 trounced the key index of global fossil fuel companies (the MSCI ACWI/Energy Index), which gained only 64.5% through those years.

And that’s the big deal, says As You Sow CEO Andrew Behar, who co-authored the 2024 study. “In 2016, we created the Clean200 in response to investors saying, ‘If we divest fossil fuels, there is nothing to invest in.’” Eight years later, the message is clear: “Investors who are not tilting their portfolios toward a clean future do so at their own peril.”

Companies from 35 countries made the list this year. In first place again is Apple, with sustainable revenues of US$275 billion – representing 70% of the computer maker’s total revenues of $394 billion. Other blue-chip names on the list include Tesla (number three), HP (five), Microsoft (six), Daimler (12), BMW (16), Nissan (36), Nike (50), Swatch (157) and even the iconic U.S. Steel (177) – which recently committed to being zero-carbon by 2050.

“Our mission is to shine a light on the heroes of the battle against climate change,” notes report co-author Toby Heaps, CEO of Corporate Knights. “The 2024 Clean200 proves there are true sustainability champions out there. The key is to rigorously apply a scientifically inspired method to identify these gems.”

In total, Clean200 companies earned more than $2.2 trillion in sustainable revenue in 2022, deriving on average 54.7% of their revenues from sustainable business activities, versus 13.6% for their MSCI ACWI peers. Researchers calculated company revenues using the Corporate Knights Sustainable Revenue database, which identifies the percentage of sales firms earn from sustainable economy themes such as renewable power, electric vehicles, plant protein and smart buildings. The ranking excludes firms involved in industries such as fossil fuels, deforestation, prisons, weapons and tobacco – as well as companies that engage in blocking climate policies.

Leading the pack is the U.S., with 39 companies making the list this year. Other blooming centres of corporate sustainability are China (23), Japan (18) and France (13), followed by Brazil, Canada and Germany with 10 companies each.

The Canadian firms on the list span an intriguing range of industries: engineering giants WSP Global (113) and Stantec (181), environmental service firms GFL Environmental (122) and Waste Connections (151), telecoms BCE (127) and Telus (144), transportation titan Canadian National Railway (114), electronics manufacturer Celestica (141), packaging producer Cascades (168) and Ontario utility Hydro One (198).

More evidence that the future belongs to anyone who will put in the work.

METHODOLOGY

The Clean200 are the largest 200 public companies ranked by clean revenue. The ranking was first calculated on July 1, 2016, and publicly released on August 15, 2016, by Corporate Knights and As You Sow. The current list has been updated with data through January 15, 2024.

The Clean200 companies are ranked by their clean revenues in U.S. dollars. The data set is developed through assessment of a company’s revenue that aligns with the definitions laid out in the Corporate Knights Sustainable Economy Taxonomy, sourced from Corporate Knights research. To be eligible, a company must earn more than 10% of total revenues from clean sources.

The Clean200 uses negative screens. It excludes all oil and gas companies, all utilities that generate less than 50% of their power from green sources, the top 100 coal companies as 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 screened on As You Sow’s Fossil Free Funds. In addition, the Clean200 excludes weapons companies, including major military arms manufacturers found on the Stockholm International Peace Research Institute’s top 100 arms-producing and military-services list, as well as cluster munitions, nuclear weapons and civilian firearm manufacturers screened on As You Sow’s Weapon Free Funds. The Clean200 also excludes palm oil, paper/pulp, rubber, timber, cattle and soy producers that are screened on As You Sow’s Deforestation Free Funds; companies that use child or forced labour, are involved in the manufacture of harmful pesticides and that engage in negative climate lobbying are not included. The full list of exclusionary screens is provided below.