RiskMetrics Group today announced its sixth annual Global ESG 100. The Global ESG 100 companies are selected from a pool of 2,000 firms in more than 50 countries for their effective management of environmental, social and governance (ESG) risks and opportunities.
This year's list welcomed 35 companies, 20 of which have never been listed, including Sharp Corporation, which has strengthened its environmental performance and ramped up solar cell production. Other newcomers included Safeway Inc., Discovery Communications Inc., Abertis Infraestructuras, Danske Bank A/S, and Osaka Gas Company.
18 companies have been on the list since its inception in 2005: NTT Docomo, SCA AB, Novo Nordisk, Alcoa, British Land Company, United Technologies, Fresenius Medical Care, Ricoh Company, FPL Group, Hewlett-Packard, Kuraray Company, Royal Bank of Canada, Diageo, SAP, Adidas, Swiss Reinsurance, Smith & Nephew, and Land Securities.
Global ESG 100 firms are not ranked 1 through 100; instead, all are rated "AAA" by RiskMetrics' Intangible Value Assessment (IVA). Each company is also a constituent of the FTSE All World Developed (AWD) Index. In 2010, 154 companies met these base criteria. RiskMetrics then balanced the list according to the industry and super-sector distribution of the benchmark FTSE AWD.
To calculate performance, RiskMetrics analyzes the Global ESG 100 as an equal-weighted portfolio. This means each firm contributes equally to the Global ESG 100's performance; firms with larger market capitalizations do not have a larger impact on the portfolio's performance.
From its inception in February 2005, the Global ESG 100 has outperformed its benchmark FTSE AWD Index by 116 basis points per annum at the end of 2009. For a full list of the Global ESG 100 companies, please visit http://www.riskmetrics.com/docs/global-esg-100-2010.
Leave a comment