Top 10 global sustainability leaders
On the eve of Rio +20, EIRIS has applied its Sustainability Ratings research methodology to measure the Sustainability performance of 2,063 global companies from the FTSE AWD Index. Our analysis identifies the following Top 10 global sustainability leaders:
Sector: Personal Goods | Country: Germany
Puma demonstrates strong performance in several key ESG areas which help mitigate the risks associated with its involvement in the personal goods sector. This sector is known for significant ESG-related risks including legal, regulatory and reputational concerns associated with environmental impacts, brand perception and human rights risks particularly with respect to supply chain practices. The Company has exceptional environmental management systems and reporting practices in place, which are bolstered by its significant improvements in environmental performance. The Company has industry leading supply chain policies, systems, and disclosure in place. Although it has encountered issues related to the use of excessive working hours in its supply chain, a violation of key conventions of the International Labour Organisation (ILO), Puma has taken steps to address these issues and improve its internal monitoring systems in order to prevent similar occurrences in the future. The company also provides meaningful disclosure regarding its stakeholder engagement practices, has a comprehensive policy on equal opportunities for its employees, provides information about workplace health and safety risk management systems, and has programmes designed to train and develop its workforce.
Sector: Travel & Leisure | Country: UK
FirstGroup derives over 90% of sales from rail and bus services. Key ESG risks associated with transportation services stem from environmental impacts, stakeholder relationships, particularly employee relationships, and workforce health and safety issues. The Company scores well on ESG issues across the board and has demonstrated significant improvements in its environmental performance, thereby mitigating risks associated with its environmental impacts.
3) National Australia Bank
Sector: Banks | Country: Australia
As a bank, National Australia Bank’s operations carry relatively minor ESG risks compared to companies in other sectors. However, it is exposed to risks through project finance operations. The Company has committed to the Equator Principles and has programmes in place to train employees on how to understand and identify possible environmental and social risks when evaluating projects and monitoring its loan agreements to ensure that environmental and social stipulations are met. The Company also has exceptional policies and management systems in place to manage and assuage the environmental impact of its operations. It demonstrates evidence of supporting and engaging employees, and fostering effective relationships with customers and suppliers. In addition, the Company is transparent regarding its relationships and engagement with stakeholders.
Sector: Pharmaceuticals | Country: UK
Key issues for pharmaceutical companies stem from the environmental impacts associated with producing pharmaceuticals, human rights issues particularly in countries where protections are lax, and complex relationships with key stakeholders including employees, regulators, customers, and communities. GlaxoSmithKline is recognized among sustainability leaders largely due to its commitments to offering healthcare products and services which can improve the lives of customers, and to promoting access to medicines in the developing world. The Company offers preferential drug pricing plans for developing countries for certain medicines and issues voluntary licences to generic manufacturers. In addition to these social commitments, the Company demonstrates exceptional environmental practices; most notably it has very strong water risk management practices which are considered unique among large cap companies. The Company also has advanced corporate governance management systems in place which includes comprehensive policies and programmes to moderate bribery risks throughout its operations.
Sector: Pharmaceuticals | Country: Switzerland
Like other pharmaceutical companies, Roche faces ESG risks related to environmental impacts, human rights, stakeholder relationships, and corporate governance issues. Roche’s ESG strengths stem from its positive products and services related to healthcare and its commitment to increasing access to medicines in the developing world. It performs well relative to its peers in corporate governance and stakeholder relationship matters. The Company scores highly on governance factors, with an advanced code of ethics and anti-bribery management system and a comprehensive approach to company-wide
Sector: Pharmaceuticals | Country: Switzerland
Novartis’ key ESG risks relate to its environmental impacts, human rights, stakeholder relationships, and corporate governance issues. Novartis has a comprehensive environmental policy and management system and exceptional disclosure in this area. In addition, the Company has a positive approach to water risk management which is considered a key area of concern for this sector. With regard to corporate governance, the Company has advanced policies and programmes to address bribery risks, as well as advanced practices aimed at identifying and managing company-wide ESG risks. The Company is also recognised for its positive products and services related to healthcare and its efforts to increase access to medicines. Although there have been allegations of gender discrimination at the Company, it has addressed these allegations and taken steps to prevent similar issues in the future
7) Phillips Electronics
Sector: Leisure goods | Country: Netherlands
Phillips Electronics’ key ESG risks stem from the environmental impacts of its operations and products, risks associated with labour practices in its supply chain and bribery issues. The Company offers environmentally and socially beneficial services which include energy management and energy efficiency services and products and services related to healthcare provision. In addition, the Company has positive elements across its ESG profile including an exceptional environmental policy, management system and reporting, advanced systems to mitigate bribery risks, an advanced code of ethics and strong systems to manage company-wide ESG risks. It also has a comprehensive policy, management system and reporting mechanism regarding supply chain labour practices and performance
8) Deutsche Boerse
Sector: Financial services | Country: Germany
Deutsche Boerse operates in the financial services sector which has relatively few direct ESG risks. Despite the low ESG risk profile, the Company has some strong ESG practices in place with regard to environmental issues, corporate governance and stakeholder engagement. The Company has demonstrated significant improvement in its environmental performance, mostly related to decreases in paper consumption. It has advanced policies on bribery and code of ethics and displays reasonable management of stakeholder issues relating to employees.
9) Novo Nordisk
Sector: Pharmaceuticals | Country: Denmark
Like its peers in the pharmaceutical sector, Novo Nordisk has been awarded points as a result of its positive products and services related to healthcare. The Company has exceptional environmental management systems and reporting, and has demonstrated moderate water management systems.
In addition, the Company has an advanced policy and systems to address bribery risk and advanced systems to manage company-wide ESG risks. Notably, the Company