It appears in the Progressive Investor, a newsletter published by SustainableBusiness.com that tracks this emerging market. The SB20 list is presented in The Progressive Investor.
SustainableBusiness.com commissioned five leading socio-environmental investment analysts to recommend companies that sit at the top of both the sustainability and financial strength lists.
“SustainableBusiness.com CEO and Editor of The Progressive Investor Rona Fried, Ph.D., says the goal is to select companies leading the way to a sustainable society.
A sustainable business model is integral to each of the business models of Novozymes, Herman Miller, Swiss Re, Electrolux and Triodos Bank. They are acutely aware of the ecological crisis and what they can do to alleviate it. In addition, they each take a public stand for sustainability within their respective industries and assist the industry as a whole in making this transition.
A number of the companies are leading their respective industries to adopt sustainability practices: Henkel in chemical manufacturing; Chiquita in banana production; Philips and Canon in electronics; STMicroelectronics in semiconductors; and Green Mountain Coffee in coffee production.
In terms of sustainability, United Natural and Whole Foods have businesses with an organic mission to integrate natural/organic products into society. Both companies have consistently outperformed the stock market and have become the biggest sustainability success stories in recent years.
In this year’s list, only Vestas (the largest wind company in the world) is profitable, making it the only company in this emerging sector on the list. Having been on the list for the past two years, Ballard and Fuel Cell Energy are hoping to be back next year when they are in a better financial position.
According to Winslow’s Jack Robinson, “From a macro perspective, all of the factors are in place for the renewable energy industry to enjoy sustained growth of over 20% over the next decade. The challenge now is to pick the winning companies, which is difficult right now. I see this industry as where natural/organic foods were 12 years ago..”
There are a variety of companies based in Asia that offer more affordable energy-efficient motors, such as Baldor, East Japan Rail, JM, and Electrolux, Canon, and Philips. When it comes to clean energy, some people invest in Baldor, East Japan Rail, JM, or even Electrolux, Canon and Philips.
In addition to using green procurement and efficient engines to run its trains, East Japan Railway, the world’s largest passenger railroad, also experiments with wind and solar power. In order to design the most efficient products in their respective markets, Electrolux, Canon and Philips use life cycle analysis. Construction work by JM is extensively based on energy-efficient and resource-conserving green building practices.
In many ways, the “green” business sector remains a mystery to many investment information sources today. Research indicates that companies that perform well on the environment outperform financially as well. By creating SB20 and The Progressive Investor to follow companies and news on an ongoing basis, companies that are well-positioned as investments are showcased and rewarded.
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