The number of large global companies reporting at least some details of their environmental performance climbed 20 percent in the past year, according to an environmental ranking of the 500 biggest companies in the world.
The Newsweek Green Rankings, a ranking of the world’s 500 biggest companies by disclosure, performance and improvement in the realm of the environment, also notes a marked increase in environmental transparency by companies from emerging markets countries.
Santander Brasil, the Brazil-based banking unit of Spain’s Santander, placed first in the global rankings this year, followed by Indian IT services company Wipro, according to a press release announcing the results. Bradesco, another Brazilian-based bank, came in third place and IBM of the US placed fourth.
‘Since the launch of Newsweek’s Green Rankings in 2009 we have had thousands of conversations with companies seeking to provide information about their environmental performance,’ says James Salo, the senior vice president of research at Trucost, which helps compile the rankings, in the release.
‘By improving the transparency on their environmental performance, companies are becoming more responsible for its improvement. This is an important step toward reducing environmental impact and risk.’
The Newsweek Green Rankings are compiled yearly by Newsweek, along with advisers from global sustainability research firm Sustainalytics and Trucost, which specializes in quantitative measurement of companies’ environmental performance. The companies are ranked according to three major factors, including environmental impact, disclosure and management.
Trucost assigns the companies an environmental impact score derived from more than 700 metrics, including emissions of various types of gases, water use, solid-waste disposal and more.
Sustainalytics gives the companies an environmental management score based on corporate policies, programs, certifications, and targets for company operations, contractors and suppliers, and products and services.
Trucost and Sustainalytics together assign the companies an environmental disclosure score, based on the company’s willingness to provide environmental performance data.
At the bottom of the list – in 500th place – is Singaporean agribusiness Wilmar, which manufactures palm oil and other products. Ranked 499th is energy company Coal India, which was preceded on the list by US agricultural biotechnology company Monsanto, Indian utilities company NTPC and US food processor and commodities trader Archer Daniels Midland.
The Newsweek Green Rankings keeps a separate ranking of the 500 companies in the US alone. This year, that list was led by IBM, Hewlett-Packard, Sprint Nextel, Dell and CA Technologies.
At the bottom of the list was financials company BlackRock, preceded by Alpha Natural Resources, CF Industries Holdings, T Rowe Price and Monsanto.
