Corporate Knights and As You Sow have released our 7th Carbon Clean 200 list of publicly traded companies that are leading the way with solutions for the transition to a clean energy future.
Since our first report was launched in the summer of 2016 a great deal has changed in the world.
Larry Fink, the CEO of the largest investment firm in the world, shook up Wall Street this January stating that we are “on the edge of a fundamental reshaping of finance” with climate change as a defining feature, that “climate risk in investing risk…in the near future – and sooner than most anticipate – there will be a significant reallocation of capital.”
In between Fink’s letter, Greta Thunberg’s call for a radical change acceleration on the pace of climate action took over the agenda at Davos during the World Economic Forum, where a new manifesto proclaimed stakeholder capitalism and ESG define the new economy and Larry Fink was spotted wearing a rare-edition 2 degrees scarf around his neck.
Another inflection point in the popular culture realm occurred during halftime at Superbowl 2020, where the company that once “killed the electric car” purchased a prime advertising slot to showcase their new electric Hummer with LeBron James as the pitchman.
The fundamental story is that march from high carbon energy to clean energy is only quickening driven mainly by economics, risk, and increasingly supported by other social forces from Greta to Pope Francis; from Extinction Rebellion to The European Central Bank.
Investors have awoken to this trend, which helps to account for the anomalous direction of oil prices and oil stock values in 2019. Brent Crude Oil prices rose 28% and WTI oil prices rose 30% last year, while the energy sector placed dead last in the Standard & Poor’s 500 index, posting a 7.3% gain, while the index as a whole rose 29% for the year.
Financial markets are driven by two powerful emotions: greed and fear.
As the outgoing governor of the Bank of England, Mark Carney, puts it, “Companies that don’t adapt [to the low-carbon economy] – including companies in the financial system – will go bankrupt without question. [But] there will be great fortunes made along this path aligned with what society wants.”
To wit: the top five coal companies in the U.S. have all declared bankruptcy since 2016, and Apple is now bigger than all the oil and gas companies on the S&P 500 combined, in large part because they have earned negative returns over the last decade, even after accounting for dividends.
Carbon-intensive companies are suffering because the alternatives are not just cleaner but cheaper. Around two-thirds of the world’s population now live in countries in which wind or solar are the lowest-cost ways of generating power. Renewables are now cheaper than coal in two-thirds of the world’s countries, according to Bloomberg New Energy Finance. BNP Paribas estimates that oil needs to come down to US$10 a barrel to be competitive with electricity-driven transport. This does not mean fossil fuels are going away tomorrow, but it does kill the growth story and leads to questions about demand assumptions on big oil’s economic forecast. For oil investors, the market’s realization of this inevitable decline could make the coal horror show look like Mary Poppins.
This increasing speed of the energy transition is part of the reason why investors representing US$12 trillion in assets have made public their divestment from fossil fuels.
Perhaps more telling is that beyond these public declarations, many of the biggest investors in the world are selling off their fossil fuel holdings and loading up on green assets. For example, without any fanfare the C$200 billion Ontario Teachers’ Pension Plan has dialed down its fossil-fuel equity holdings to just 1%. On the upside, the C$306 billion Caisse de dépôt et placement du Québec (CDPQ) has grown its green investment book to C$30 billion, earning commercial returns along the way, according to outgoing chief executive Michael Sabia.
While economics are shifting in favor of clean energy investing, so is public sentiment. Call it the Greta effect if you like, but most people are no longer comfortable with the idea that their retirement investments may be helping to set the world on fire and we are seeing this especially in millennials and women.
Andreas Utermann, chief executive of Allianz Global Investors, which manages US$600 billion, says, “Clients have changed their tune. They have said we need to take this more seriously, and that has sharpened the minds of asset managers.”
With all this action, we hope that the Clean200 can to do two things:
- provide a useful North star for investors looking to pinpoint the companies leading the way to a clean energy future.
- to dispel the myth that clean investing is about sacrificing returns.
Efficient market theorists caution that if you add any non-financial considerations to portfolio selection, you are at a financial disadvantage. The trouble with this theory is that investing in a time of transition is like hitting a curveball. Putting on a clean energy lens gives the batter a better sense of the ball’s trajectory and increases the chance of making solid contact.
To make things easier, Corporate Knights and As You Sow are proud to present the latest edition of the Clean200.
While we’re not promising any home runs, we are happy to report that the Clean200 now has more than a three-year track record of outperforming its high-carbon global counterparts.
Clean 200 returns
Since inception (July 1, 2016), the Clean200 has generally been ahead of the MSCI ACWI Energy Index.
Source: S&P IQ Capital, Corporate Knights
Overall, the model presented in the form of the Clean200 continues to indicate that demand and market forces are driving growth for low carbon companies. Since its inception two and a half years ago, the Clean200 has generally outperformed the MSCI ACWI Energy Index. It will be interesting to see how the trends unfold over the next few months.
The Clean200 list
| Rank | Company | Sector | Country |
|---|---|---|---|
| 1 | Taiwan Semiconductor Manufacturing Co | Information Technology | Taiwan |
| 2 | Alphabet Inc | Communication Services | United States |
| 3 | Siemens AG | Industrials | Germany |
| 4 | Toyota Motor Corp | Consumer Discretionary | Japan |
| 5 | HP Inc | Information Technology | United States |
| 6 | Iberdrola SA | Utilities | Spain |
| 7 | Cisco Systems Inc | Information Technology | United States |
| 8 | Tesla Inc | Consumer Discretionary | United States |
| 9 | Schneider Electric SE | Industrials | France |
| 10 | Unilever PLC | Consumer Staples | United Kingdom |
| 11 | Lenovo Group Ltd | Information Technology | China |
| 12 | Abb Ltd | Industrials | Switzerland |
| 13 | Vestas Wind Systems A/S | Industrials | Denmark |
| 14 | Umicore SA | Materials | Belgium |
| 15 | Valeo SA | Consumer Discretionary | France |
| 16 | Intel Corp | Information Technology | United States |
| 17 | Banco do Brasil SA | Financials | Brazil |
| 18 | Air Liquide SA | Materials | France |
| 19 | Compagnie de Saint Gobain SA | Industrials | France |
| 20 | Companhia Energetica de Minas Gerais CEMIG | Utilities | Brazil |
| 21 | Hitachi Ltd | Information Technology | Japan |
| 22 | Sanofi SA | Health Care | France |
| 23 | Canadian National Railway Co | Industrials | Canada |
| 24 | Accenture PLC | Information Technology | Ireland |
| 25 | Telefonaktiebolaget LM Ericsson | Information Technology | Sweden |
| 26 | Byd Co Ltd | Consumer Discretionary | China |
| 27 | Kimberly-Clark Corp | Consumer Staples | United States |
| 28 | Kering SA | Consumer Discretionary | France |
| 29 | Panasonic Corp | Consumer Discretionary | Japan |
| 30 | Alstom SA | Industrials | France |
| 31 | Samsung SDI Co Ltd | Information Technology | South Korea |
| 32 | Aisin Seiki Co Ltd | Consumer Discretionary | Japan |
| 33 | BT Group PLC | Communication Services | United Kingdom |
| 34 | Nokia Oyj | Information Technology | Finland |
| 35 | Johnson Controls International PLC | Industrials | Ireland |
| 36 | Orsted A/S | Utilities | Denmark |
| 37 | Hewlett Packard Enterprise Co | Information Technology | United States |
| 38 | SAP SE | Information Technology | Germany |
| 39 | Konica Minolta Inc | Information Technology | Japan |
| 40 | Kone Oyj | Industrials | Finland |
| 41 | Adidas AG | Consumer Discretionary | Germany |
| 42 | Siemens Gamesa Renewable Energy SA | Industrials | Spain |
| 43 | Sumitomo Electric Industries Ltd | Consumer Discretionary | Japan |
| 44 | Koninklijke KPN NV | Communication Services | Netherlands |
| 45 | Smurfit Kappa Group PLC | Materials | Ireland |
| 46 | Ecolab Inc | Materials | United States |
| 47 | Prysmian SpA | Industrials | Italy |
| 48 | Natura Cosmeticos SA | Consumer Staples | Brazil |
| 49 | Ball Corp | Materials | United States |
| 50 | Sims Metal Management Ltd | Materials | United States |
| 51 | Keppel Corporation Ltd | Industrials | Singapore |
| 52 | Canadian Pacific Railway Ltd | Industrials | Canada |
| 53 | Signify NV | Industrials | Netherlands |
| 54 | Bombardier Inc | Industrials | Canada |
| 55 | Ricoh Co Ltd | Information Technology | Japan |
| 56 | Emerson Electric Co | Industrials | United States |
| 57 | Asahi Kasei Corp | Materials | Japan |
| 58 | Danaher Corp | Health Care | United States |
| 59 | Sekisui House Ltd | Consumer Discretionary | Japan |
| 60 | Avangrid Inc | Utilities | United States |
| 61 | Contemporary Amperex Technology Co Ltd | Industrials | China |
| 62 | Koninklijke DSM NV | Materials | Netherlands |
| 63 | Xinjiang Goldwind Science & Technology Co Ltd | Industrials | China |
| 64 | Dassault Systemes SE | Information Technology | France |
| 65 | Osram Licht AG | Industrials | Germany |
| 66 | Ingersoll-Rand PLC | Industrials | United States |
| 67 | Skanska AB | Industrials | Sweden |
| 68 | Verbund AG | Utilities | Austria |
| 69 | CSX Corp | Industrials | United States |
| 70 | Canadian Solar Inc | Information Technology | Canada |
| 71 | China Longyuan Power Group Corp Ltd | Utilities | China |
| 72 | Akzo Nobel NV | Materials | Netherlands |
| 73 | JinkoSolar Holding Co Ltd | Information Technology | China |
| 74 | Takeda Pharmaceutical Co Ltd | Health Care | Japan |
| 75 | Shimizu Corp | Industrials | Japan |
| 76 | LG Chem Ltd | Materials | South Korea |
| 77 | Sekisui Chemical Co Ltd | Consumer Discretionary | Japan |
| 78 | Solvay SA | Materials | Belgium |
| 79 | Fanuc Corp | Industrials | Japan |
| 80 | Murata Manufacturing Co Ltd | Information Technology | Japan |
| 81 | City Developments Ltd | Real Estate | Singapore |
| 82 | LONGi Green Energy Technology Co Ltd | Information Technology | China |
| 83 | Kingspan Group PLC | Industrials | Ireland |
| 84 | West Japan Railway Co | Industrials | Japan |
| 85 | Cascades Inc | Materials | Canada |
| 86 | American Water Works Company Inc | Utilities | United States |
| 87 | Waste Management Inc | Industrials | United States |
| 88 | Electrolux AB | Consumer Discretionary | Sweden |
| 89 | GCL-Poly Energy Holdings Ltd | Information Technology | Hong Kong |
| 90 | Aptiv PLC | Consumer Discretionary | United Kingdom |
| 91 | SMC Corp | Industrials | Japan |
| 92 | Parker-Hannifin Corp | Industrials | United States |
| 93 | VMware Inc | Information Technology | United States |
| 94 | Biomerieux SA | Health Care | France |
| 95 | McCormick & Company Inc | Consumer Staples | United States |
| 96 | Legrand SA | Industrials | France |
| 97 | Lite-On Technology Corp | Information Technology | Taiwan |
| 98 | Wartsila Oyj Abp | Industrials | Finland |
| 99 | Koninklijke Philips NV | Health Care | Netherlands |
| 100 | MLS Co Ltd | Information Technology | China |
| 101 | Capitaland Ltd | Real Estate | Singapore |
| 102 | Melrose Industries PLC | Industrials | United Kingdom |
| 103 | Rexel SA | Industrials | France |
| 104 | Sino-American Silicon Products Inc | Information Technology | Taiwan |
| 105 | Tianneng Power International Ltd | Consumer Discretionary | China |
| 106 | Air Products and Chemicals Inc | Materials | United States |
| 107 | H & M Hennes & Mauritz AB | Consumer Discretionary | Sweden |
| 108 | Autodesk Inc | Information Technology | United States |
| 109 | Spie SA | Industrials | France |
| 110 | China Everbright International Ltd | Industrials | Hong Kong |
| 111 | China Railway Signal & Communication Corp Ltd | Information Technology | China |
| 112 | Kao Corp | Consumer Staples | Japan |
| 113 | Eaton Corporation PLC | Industrials | United States |
| 114 | Atlas Copco AB | Industrials | Sweden |
| 115 | Doosan Co Ltd | Industrials | South Korea |
| 116 | Andritz AG | Industrials | Austria |
| 117 | Workday Inc | Information Technology | United States |
| 118 | Norsk Hydro ASA | Materials | Norway |
| 119 | FirstGroup PLC | Industrials | United Kingdom |
| 120 | Analog Devices Inc | Information Technology | United States |
| 121 | United Natural Foods Inc | Consumer Staples | United States |
| 122 | NARI Technology Co Ltd | Industrials | China |
| 123 | NSK Ltd | Industrials | Japan |
| 124 | Aalberts NV | Industrials | Netherlands |
| 125 | Tianjin Zhonghuan Semiconductor Co Ltd | Information Technology | China |
| 126 | AB SKF | Industrials | Sweden |
| 127 | Zhejiang Chint Electrics Co Ltd | Industrials | China |
| 128 | Samsung Electro-Mechanics Co Ltd | Information Technology | South Korea |
| 129 | Green Plains Inc | Energy | United States |
| 130 | LG Innotek Co Ltd | Information Technology | South Korea |
| 131 | Brookfield Renewable Partners LP | Utilities | Canada |
| 132 | Acuity Brands Inc | Industrials | United States |
| 133 | China Agri-Industries Holdings Ltd | Consumer Staples | Hong Kong |
| 134 | Nexans SA | Industrials | France |
| 135 | MTR Corp Ltd | Industrials | Hong Kong |
| 136 | Sandvik AB | Industrials | Sweden |
| 137 | eBay Inc | Consumer Discretionary | United States |
| 138 | Applied Materials Inc | Information Technology | United States |
| 139 | THK Co Ltd | Industrials | Japan |
| 140 | Wacker Chemie AG | Materials | Germany |
| 141 | Nordex SE | Industrials | Germany |
| 142 | Doosan Heavy Industries & Construction Co Ltd | Industrials | South Korea |
| 143 | Omron Corp | Information Technology | Japan |
| 144 | Xinte Energy Co Ltd | Industrials | China |
| 145 | Keikyu Corp | Industrials | Japan |
| 146 | Delta Electronics Inc | Information Technology | Taiwan |
| 147 | Huaneng Renewables Corp Ltd | Utilities | China |
| 148 | Nitto Denko Corp | Materials | Japan |
| 149 | Guodian Technology & Environment Group Corp Ltd | Industrials | China |
| 150 | Essity AB (publ) | Consumer Staples | Sweden |
| 151 | Air Water Inc | Materials | Japan |
| 152 | Kansas City Southern | Industrials | United States |
| 153 | Shin-Etsu Chemical Co Ltd | Materials | Japan |
| 154 | GCL System Integration Technology Co Ltd | Information Technology | China |
| 155 | ASML Holding NV | Information Technology | Netherlands |
| 156 | CIMIC Group Ltd | Industrials | Australia |
| 157 | Nidec Corp | Industrials | Japan |
| 158 | Amcor PLC | Materials | Australia |
| 159 | Weyerhaeuser Co | Real Estate | United States |
| 160 | NTN Corp | Industrials | Japan |
| 161 | Sungrow Power Supply Co Ltd | Industrials | China |
| 162 | Shunfeng International Clean Energy Ltd | Information Technology | China |
| 163 | Metso Oyj | Industrials | Finland |
| 164 | NCC Ltd | Industrials | India |
| 165 | DSV A/S | Industrials | Denmark |
| 166 | Siemens Ltd | Industrials | India |
| 167 | TE Connectivity Ltd | Information Technology | Switzerland |
| 168 | Dover Corp | Industrials | United States |
| 169 | Suzhou Dongshan Precision Manufacturing Co Ltd | Information Technology | China |
| 170 | Suzlon Energy Ltd | Industrials | India |
| 171 | Risen Energy Co Ltd | Information Technology | China |
| 172 | GEA Group AG | Industrials | Germany |
| 173 | Evoqua Water Technologies Corp | Industrials | United States |
| 174 | China Lesso Group Holdings Ltd | Industrials | China |
| 175 | Jindal SAW Ltd | Materials | India |
| 176 | Clariant AG | Materials | Switzerland |
| 177 | Pearson PLC | Communication Services | United Kingdom |
| 178 | Fortive Corp | Industrials | United States |
| 179 | Ebara Corp | Industrials | Japan |
| 180 | Nibe Industrier AB | Industrials | Sweden |
| 181 | Chr Hansen Holding A/S | Materials | Denmark |
| 182 | STMicroelectronics NV | Information Technology | Switzerland |
| 183 | COFCO Biochemical Anhui Co Ltd | Materials | China |
| 184 | Shenzhen Desay Battery Technology Co Ltd | Industrials | China |
| 185 | Sika AG | Materials | Switzerland |
| 186 | Graphic Packaging Holding Co | Materials | United States |
| 187 | SNC-Lavalin Group Inc | Industrials | Canada |
| 188 | EDP Renovaveis SA | Utilities | Spain |
| 189 | Tofas Turk Otomobil Fabrikasi AS | Consumer Discretionary | Turkey |
| 190 | Renewable Energy Group Inc | Energy | United States |
| 191 | Transcontinental Inc | Industrials | Canada |
| 192 | Itron Inc | Information Technology | United States |
| 193 | LS Corp | Industrials | South Korea |
| 194 | Stantec | Industrials | Canada |
| 195 | Peab AB | Industrials | Sweden |
| 196 | Sanan Optoelectronics Co Ltd | Information Technology | China |
| 197 | Jiangsu Zhongli Group Co Ltd | Industrials | CHINA |
| 198 | ON Semiconductor Corp | Information Technology | United States |
| 199 | China Datang Corp Renewable Power Co Ltd | Utilities | China |
| 200 | Xuji Electric Co Ltd | Industrials | China |
For full results, including last year's Clean 200 companies that didn't make the cut this year, this year's new entrants and companies excluded from our 2020 list, click here:
THE CLEAN200 Methodology
The Clean200 are the largest 200 public companies ranked by green energy revenues. It 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 the end of 2019 (December 31, 2019).
The Clean200 companies are listed by their estimated green revenues in USD. The dataset is developed by multiplying a company’s most recent year-end revenues by its clean revenue estimate, primarily sourced from Corporate Knights Research. In order to be eligible, a company must have USD revenue of at least $1 billion (most recent available fiscal year end data) and earn more than 10% of total revenues from clean sources.
The Clean200 uses negative screens. It excludes all oil and gas companies and utilities that generate less than 50 percent of their power from green sources, the top 100 coal companies measured by reserves, the top 100 oil & 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 SIPRI Top 100 arms-producing and military services list, as well 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, beef, and soy producers that are screened on As You Sow’s Deforestation Free Funds, companies using child or forced labor, and companies who engage in negative climate lobbying are not included. The full list of exclusionary screens is provided below.
| Clean200 Negative Screens | Criteria | Number of Companies Excluded |
| Farm Animal Welfare | Identifies company laggards (Tier 5 or 6) on Farm Animal Welfare practices, based on the Benchmark for Farm Animal Welfare. | 0 |
| Industrial Meat | Identifies meat companies, according to FactSet RBICS. | 0 |
| Corporate Fines, Penalties or Settlements |
Identifies laggard companies (bottom quartile) with high monetary fines, penalties and settlements paid as a percentage of total revenue. | 2 |
| Tobacco | Identifies companies which earn more than 5% of revenue from tobacco using FactSet's RBICS. | 0 |
| Controversial Weapons | The SIPRI Top 100 arms-producing and military services companies in the world (Link); Cluster munitions and landmines, nuclear weapons, gun manufacturers screened by As You Sow Weapon Free Funds tool (Link) | 2 |
| Conventional Weapons | The SIPRI Top 100 arms-producing and military services companies in the world (Link); Cluster munitions and landmines, nuclear weapons, gun manufacturers screened by As You Sow Weapon Free Funds tool (Link) | 2 |
| Farm Animal Welfare | Identifies company laggards (Tier 5 or 6) on Farm Animal Welfare practices, based on the Benchmark for Farm Animal Welfare. | 0 |
| Industrial Meat | Identifies meat companies, according to FactSet RBICS. | 0 |
| Corporate Fines, Penalties or Settlements |
Identifies laggard companies (bottom quartile) with high monetary fines, penalties and settlements paid as a percentage of total revenue. | 2 |
| Tobacco | Identifies companies which earn more than 5% of revenue from tobacco using FactSet's RBICS. | 0 |
| Controversial Weapons | The SIPRI Top 100 arms-producing and military services companies in the world (Link); Cluster munitions and landmines, nuclear weapons, gun manufacturers screened by As You Sow Weapon Free Funds tool (Link) | 2 |
| Conventional Weapons | The SIPRI Top 100 arms-producing and military services companies in the world (Link); Cluster munitions and landmines, nuclear weapons, gun manufacturers screened by As You Sow Weapon Free Funds tool (Link) | 2
|
| Small Arms (Hand Guns) | Identifies companies which earn more than 5% of revenue from sale of handguns using FactSet's RBICS. | 0 |
| Blocking Climate Policy | Identifies laggards (scored less than E) in climate regulation readiness according to InfluenceMap. | 1 |
| Severe Environmental Damage |
Identifies companies which meet NBIM exclusion for "Actions or omissions that constitute an unacceptable risk of the Fund contributing to severe environmental damages". | 1 |
| Thermal Coal | The FFI Carbon Underground Top 100 companies by coal reserves (Link); Morningstar coal industry company industry classification (Link); Companies which derive at least 30% of revenue from thermal coal as provided by Oxford Smith School, supplemented by corporate financial disclosures. | 13 |
| Non-Green Utilities | Any utility that derives less than 50% revenue from green sources; Macroclimate Top 30 public company owners of coal-fired power plants (Link) | 28 |
| Tropical Deforestation | Scores less than 2 on Forest 500 scale; Palm oil, paper/pulp, rubber, timber, beef, and soy screened by the As You Sow/Friends of the Earth Deforestation Free Funds tool (Link) | 8 |
| For-Profit Prison | Identifies companies which own or operate private prisons according to FactSet RBICS and two aggregated private prison divestment lists, from American Friends Service Committee (Quaker) and Enlace International's National Private Prison Divestment Campaign. | 0 |
| Repressive Regime | Identifies companies which derive at least 5% of their revenue from countries listed as "worst of the worst" by Freedom House. | 0 |
| Global Compact Principles Violators |
Companies identified by RepRisk Global Compact database with a “VIOLATOR_OPERATIONS” flag under either of human rights, labour, environment or anti-corruption themes. |
0 |
| Gambling | Identifies companies which earn more than 5% of revenue from gambling using FactSet's RBICS. | 0 |
| Pornography | Companies classified by "Adult Entertainment" by at least one of the cohort of large pension funds with exclusion lists that Corporate Knights monitors. | 0 |
| Excess of conventional over clean energy financing | Based on Bloomberg BNEF data and/or corporate disclosures. Companies who sum of conventional energy financing exceeds new energy financing are removed. | 0 |
| Child/Forced labour | Source: Know the Chain. Companies which scored in bottom half of Know the Chain rating are removed | 2 |
| Oil &Gas | The FFI Carbon Underground Top 100 companies by oil/gas reserves (Link); | 0 |
| Ratio of fossil cap-ex to renewables cap ex is greater than 2:1 | Where an oil& gas company derives a minority of revenue from renewable energy sources, those whose capital expenditure towards renewable energy business to fossil-fuel energy business is less than 25% (or not disclosed) are removed | 0 |