The Global 100 Methodology

Methodology

The Global 100 is a list of publicly-traded, MSCI World-listed companies that, based on research and analysis by Innovest Strategic Value Advisors, have the best developed abilities, relative to their industry peers, to manage the environmental, social and governance (ESG) risks and opportunities they face. The companies were selected from the Innovest universe of around 1,800 securities.

Innovest singles out all companies in its universe that obtained a combined AAA score as of December 31. Secondly, it eliminates all AAA-rated securities that were not listed on the MSCI World, as well as all companies that had been acquired or whose operations were so integrated with those of a parent company as to not warrant having them stand as independent entities. The third step entails determining each Innovest Category’s weight within the MSCI World in terms of number of companies, and then allocating those Categories the same weight within the Global 100. Finally, the resulting set of companies is reviewed by Innovest’s Director of Research and certain analysts were queried one final time about their choices. The finalized list of Global 100 Most Sustainable Corporations in the World is then sent to Corporate Knights for publication and dissemination.

You may notice that the Global 100 are not arranged in any particular order except alphabetically. That is because we do not believe that it is particularly insightful, or even methodologically possible, to give companies absolute sustainability ratings, as different industries face vastly different sets of social and environmental dynamics. Comparing an integrated oil & gas company directly to a food retailer essentially equates to, in our opinion, comparing apples and oranges. Companies on the Global 100 list are thus Category leaders in terms of ESG risk and opportunity management for each of Innovest’s 71 Categories.

For more on the company selection process, see also the FAQ section.