Newsweek Green Rankings 2015
After the complete refurbishment of methodology Newsweek’s Green Rankings contained one considerable flaw last year in the highest weighed KPI. The news this year is: Newsweek and its provider of the ranking – Corporate Knights Capital – did their homework and succeeded to improve the methodology.
Newsweek’s Green Ranking could be considered as one of the most important rankings on environmental sustainability. It consists of eight KPIs covering e.g. energy-, green house gas-, waste- and water productivity each weighted 15 %. Three corporate governance indicators sum up to a weight of 20 %. The highest weighed single indicator now measures the “Green Revenue Score” which is the portion of a company’s revenue that is derived from products and services that contribute positively to environmental sustainability. The data is provided by HIP Investor, a company specialized in sustainability metrics. While this KPI still could contain errors as it relies on data delivered by the companies reviewed it is a much better metric than the KPI applied last year. All other KPIs and data sources remain unchanged.
Newsweek Green Rankings covers the 500 largest US and the 500 largest publicly traded companies worldwide. The global list is headed by three health care companies: Biogen, Shire and Allergan followed by Reckitt Benckiser, Adobe, Swisscom, and Unilever. All in all we see quite a few changes among the top 50. Unfortunately the presentation of detailed data has changed since last year so that a comparison is not as easy as it should by. It is likely that the high presence of companies belonging to the health care, information and telecommunication, and the consumer goods sector is due to the new introduced green revenue score KPI.
Newsweek’s Green Rankings is still provided by a well known player in the sustainability ranking business: Corporate Knights Capital, which is also compiling and publishing the “Global 100 Most Sustainable Corporations in the World“ ranking every year at the WEF summit in Davos. We already remarked last year that Corporate Knights providing two of the most relevant sustainability rankings worldwide has become a pretty powerful player in the sustainability ranking business. The result is also a certain monotony among indicators in two major sustainability rankings as half of the KPIs in the Green Rankings are similar to the (twelve) KPIs of the “Global 100” ranking.
The results can be accessed here.
– 15 points –
– 11 points –
– 15 points –
– 13 points –
– 54 (out of 60) –