In association with Barron's, Calvert compiled a list of the 100 Most Sustainable Companies

Calvert's research was used to identify companies that are showing leadership in addressing the environmental, social, and governance (ESG) risks that are most material to the company in the 100 Most Sustainable Companies list. To create the list, we rated the 1,000 largest (by market capitalization) publicly held companies headquartered in the United States on their responsibility in 5 key stakeholder categories:

  • Shareholders
  • Workplace
  • Customers
  • Planet
  • Community

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Each company was assessed using a weighting scheme for the five stakeholder categories unique to its sub-industry peer group that reflects financial materiality. The overall rating for each company reflects the weighted average of its rating in each of the 5 key stakeholder categories.

Companies who did not meet the Calvert Principles of Responsible Investing, or who did not rank within the top 75% of firms in every material category, were excluded from the Top 100. In addition, stock performance was not considered as a criterion in this ranking.

Methodology

Calvert analyzed the 1,000 largest publicly held companies, measured by market capitalization, with headquarters in the United States.

  • Analysis excluded REITs and MLPs
  • Analysis is based on latest data available as of December 31, 2017

Each of these 1,000 companies was rated on its demonstrated responsibility in 5 key stakeholder categories: shareholders, workplace, customers, planet and community.

  • To calculate the ratings, Calvert considered more than 300 key performance indicators from six primary vendors (see accompanying list), supplemented by other data sources where relevant.
  • This data was organized into 28 distinct issues, ranging from greenhouse gas emissions to business ethics to workplace diversity. These 28 distinct issues were sorted into the 5 key stakeholder categories.
  • Each company received a rating of 0-100 in each stakeholder category, based upon Calvert’s proprietary analysis and scoring methodology.

An overall rating for each company was calculated using a weighted average of the 5 key stakeholder categories.

  • The stakeholder weightings were based on Calvert’s assessment of the financial materiality of each stakeholder category within the company’s industry peer group.
  • Calvert determined a unique weighting for each stakeholder category in each of more than 200 distinct industry peer groups.
  • For simplicity, overall weighted scores have been rounded to the nearest whole number. Companies are ranked based upon the underlying non-rounded score.
  • The lowest overall score of a company in the universe is 27; the median score is 55.

Companies who did not meet the Calvert Principles of Responsible Investing, or who did not rank within the top 75% of firms in every material category, were excluded from the Top 100.

Stock performance was not considered as a criterion in this ranking.

  • 1-year performance is included in the table for informational purposes only.

Primary Vendors

  • CDP Worldwide (formerly the Carbon Disclosure Project)
  • Institutional Shareholder Services Inc. (ISS)
  • MSCI Inc.
  • Sustainalytics
  • Thomson Reuters Asset4
  • TruValue Labs

 


 

Important Disclosures: The list of Barron’s 100 Most Sustainable Companies was compiled according to a methodology developed by Calvert Research and Management (Calvert). The list does not represent any investment strategy offered by Calvert or its affiliates. References to specific companies and securities in the list and accompanying article do not constitute a recommendation to buy, sell, or hold such securities, or an indication that Calvert or its affiliates have recommended such securities for any product or service based on the Barron’s methodology. The performance of the securities discussed in the article is not representative of any Calvert strategy and is not a guarantee of future results.

This material is solely for informational purposes. The opinions expressed in the article represent the good faith views of the author and other persons cited therein at the time of publication, and are not investment advice and should not be relied on as such. Opinions and other information contained in the article are subject to change, without notice of any kind, and may no longer be accurate after the date indicated. Any forward-looking statements speak only as of the date they are made, and Calvert assumes no duty to and does not undertake to update forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time.

Additional information regarding the ranking methodology for the Barron’s 100 Most Sustainable Companies is available here.