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By Calvert Research and Management

Washington - For the fifth consecutive year, Calvert identified companies showing leadership in addressing the environmental, social and governance (ESG) issues relevant to their operations and to key stakeholder groups for Barron's annual list of the 100 most sustainable companies.

You can read the full article here.

While information from the Calvert Research System is incorporated into the scoring system used to compile the Barron's list, the methodology and scoring system were created specifically in response to the publication's needs. Here's some information about how we created the Barron's list:

The Top 100 List: Methodology

Calvert analyzed the 1,000 largest publicly held companies, as measured by market capitalization that are incorporated and headquartered in the United States. Each company was rated on its demonstrated responsibility in five key stakeholder categories: shareholders, employees, customers, community and planet.

To calculate the ratings, Calvert considered more than 230 key performance indicators from seven primary vendors (CDP, ISS, MSCI, Sustainalytics, Thomson Reuters Asset4, and TruValue), supplemented by other data sources and Calvert Research, where relevant.This data was organized into 28 distinct topics, which were then sorted into the five key stakeholder categories. Each company received a rating of 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 if that data were available.

An overall rating for each company was calculated using a weighted average of the five key stakeholder categories. The 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 weight for each category in each of more than 200 distinct industry peer groups.

In addition, to be considered among the 100 most sustainable companies, a firm needed to be rated above the bottom quartile in all financially material stakeholder categories. In other words, a company's poor performance with any key stakeholder group determined to be financially material disqualified that company from consideration.

Bottom line: This marks the fifth year in a row that Barron's has leveraged Calvert's proprietary ESG research as the basis for identifying companies demonstrating ESG leadership in their operations and industries as well as positive impacts on communities and the planet. Examining how companies perform on material ESG issues in comparison to their peers can help investors get a better idea of what leading companies are doing well and what others can do to accelerate the process of positive change.