Impact Blog
How Calvert's research produced Barron's 100 Most Sustainable Companies list

The views expressed in these posts are those of the authors and are current only through the date stated. These views are subject to change at any time based upon market or other conditions, and Calvert disclaims any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions for Calvert are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Calvert fund. References to individual companies for Engagement or Research purposes are provided for illustrative purposes only and may not be representative of the results of all of Calvert’s engagement efforts. The discussion herein is general in nature and is provided for informational purposes only. There is no guarantee as to its accuracy or completeness. Past performance is no guarantee of future results.

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      By Calvert Research and Management

      Washington - For the third consecutive year, Barron's asked Calvert to identify companies showing leadership in addressing the environmental, social, and governance (ESG) risks relevant to their operations.

      The resulting list of "The 100 Most Sustainable Companies" is available on the Barron's website, but here's some information about how we created it.

      To begin, Calvert analyzed the 1,000 largest publicly held companies incorporated and headquartered in the United States, measured by market capitalization. We rated each on its demonstrated responsibility in five key stakeholder categories:

      • Shareholders (e.g., board structure, business ethics, executive compensation)
      • Employees (e.g., workplace diversity, labor relations, workplace safety)
      • Customers (e.g., data security, product safety, product quality)
      • Community (e.g., human rights along the supply chain, Indigenous Peoples rights, animal welfare )
      • Planet (e.g., greenhouse gas emissions, water use/stress, energy use and efficiency)

      In doing so, Calvert considered more than 230 key performance indicators (KPIs), organized into 28 distinct topics. Each company was rated between 0-100 in each stakeholder category, based on Calvert's proprietary analysis and scoring methodology, which included taking an average of indicator-level scores over two years when that data was available. More details about the methodology are available on Barron's website.

      Once we had the ratings for each of the five stakeholder categories, we calculated each company's overall rating based on our assessment of the financial materiality that each category represented within the company's industry peer group. In addition, we did not consider any company that ranked in the bottom quartile of any of its financially material stakeholder category.

      Beyond the list

      Calvert is able to take a leadership position on efforts like this based on the deep, proprietary research we conduct every day on material ESG issues.

      To help enhance shareholder value and improve societal outcomes, our research team examines companies' environmental and social exposures, as well as their governance structures. We parse thousands of ever-evolving data points to differentiate companies' management teams on financially material ESG issues, informing both our investment decisions and our corporate engagement efforts.

      Ultimately, the goal of our processes is twofold: to help investors manage risks and opportunities and to influence outcomes that create positive change.

      Bottom line: For the third consecutive year, Barron's has leveraged Calvert's proprietary ESG research to identify the top 100 U.S. public companies demonstrating ESG leadership in their operations and industries. This reflects the rigor with which Calvert conducts research on how companies are responding to material ESG issues.