World's 100 Most Sustainable Companies Announced at Davos

World's 100 Most Sustainable Companies Announced at Davos

The 2006 "Global 100 Most Sustainable Corporations in the World" were announced at the annual meeting of the World Economic Forum in Davos. The annual list, compiled by Corporate Knights and Innovest Strategic Value Advisors, was accompanied by a benchmarking study demonstrating Global 100 outperformance of 7.11% against the MSCI World Index.

Innovest chief executive Dr. Matthew Kiernan, said: "Global companies' performance on ESG (environmental, social, and governance) issues is rapidly becoming more critical to their competitiveness, profitability, and share price. The Global 100 companies showcased here today have already demonstrated that sustainability premium, and we believe that they are positioned to reward their investors even more heavily in the future."

Toby Heaps, founder and editor of Corporate Knights Magazine, announced the 2006 results, adding, "By whittling down over 1800 firms from around the world to just the top 100 sustainability performers, the Global 100 helps to separate the sustainability pretenders from the sustainability contenders."

The Global 100 is a listing of the 100 large blue chip companies around the world that demonstrated the strongest sustainability performance among their peers. The list was first published in 2005.

This year, 28 of the 100 companies on the list were first-time entries, including Canon Inc., Nike Inc. and General Electric Company. Great Britain (30), the United States (17) and Japan (10) had the most companies among the 2006 Global 100. Notably, Sweden, with a population of 9 million (one thirtieth that of the U.S.), scored 8 companies on this year's Global 100.

The benchmarking study constructed a hypothetical portfolio that would have invested evenly in the 100 firms over the period running from December 1999 to December 2005. The study back-tested the hypothetical portfolio against the MSCI World Index and found that, after taking account of total return and rebalancing the portfolio quarterly to avoid excessive stock weights, the Global 100 outperformed the broader index by 7.11% over the five year period.

The top 100 sustainability performers in The Global 100 are chosen from the universe of publicly-traded companies on the MSCI World Index, based on research and analysis by Innovest Strategic Value Advisors. The analysis evaluates which companies had the best-developed ability -- relative to their industry peers -- to manage the environmental, social and governance (ESG) risks and opportunities they face. All of the companies included in the Global 100 are "best of class" in their respective industries.

View the Global 100 online.