German car manufacturer BMW has topped Corporate Knights’ ‘Global 100 Most Sustainable Corporations’ list while nine UK-headquartered firms made the grade.
Media and investment advisory firm Corporate Knights compiles the list each year, measuring major international firms on a series of sustainability indicators, pitting companies falling under particular GICS industries against each other.
An initial list is whittled down by excluding companies which fall foul of four screens. Firstly companies failing to reveal at least 75% of ‘priority indicators’ related to sustainability disclosures are excluded, and businesses failing to score at least five on the Piotroski F-Score, which measures financial footing, are also removed.
The list also excludes companies with GICS sub-industry classifications equal to tobacco as well as those deriving the majority of their income from the defence sector, and finally historic sanctions are taken into account.
The remaining companies are then scored out of 100% and ranked by German index provider Solactive.
While BMW topped the list with a score of 80.1%, a total of nine UK-headquartered firms featured. Consumer goods manufacturer Reckitt Benckiser was the top-ranked UK firm finishing ninth overall with a score of 71.7%, however utilities giant Centrica was not far behind in 11th with a score of 70.9%.
The remaining UK firms and their positions are Marks & Spencer Group (21), Diageo (26), BT Group (27), BG Group (36), Unilever (47), Aviva (79) and Pearson (82).
