January 21, 2016
BMW 6 Series
BMW and Kering are among the companies included in the 2016 Global 100 Most Sustainable Corporations in the World report released by media and research firm Corporate Knights.
Now in its 12th year, the rankings represent the top sustainable companies in their respective fields. Increasingly, consumers want to buy from brands whose practices they can stand behind, making an appearance on this list a potential selling point for the included brands.
Beginning in October, all companies with a market capitalization of at least $2 billion, 4,353 total, are put through four screens. Those that are not eliminated during the screening are then given scores that reflect an average across 12 key performance indicators of sustainability, including how much revenue is generated per energy unit used and the percent of taxes paid.
If a company decides not to disclose the KPIs, they are given a score of zero on that category, thereby creating an incentive for disclosure.
Ranking responsibility
BMW outperformed its peers in the automotive sector through its environmental and organizational endeavors. The company showed water efficiency, energy conservation and low wastefulness.
Other responsible tactics of the brand include its tax payments, investments in innovation, low turnover among employees and a low ratio between the salary of its CEO to the average worker.
“Sustainability is part of our identity. We have accomplished a great deal and set ourselves further goals for the future," said Harald Krüger, chairman of the Board of Management of BMW AG, in a statement. "Of course, winning ratings and rankings is not our main priority – but it shows that our activities continue to have an impact and that we are on the right track."
Kering, ranked 43rd, is one of 11 French companies to make the list. This is the first time Kering has made the list.
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“Kering is very honored to be named one of the Global 100 most sustainable corporations in the world here in Davos today," Marie-Claire Daveu, chief sustainability officer and head of international institutional affairs of Kering, said in a statement. "With 2016 to mark the redefinition of Kering’s current sustainability targets, and the beginning of our strategy’s next chapter, we are entering a crucial period of evaluation and analysis.
"Such cross-industry benchmarks are thus of heightened importance, motivating us to drive our group toward even greater economic and environmental efficiency."
In general, companies are becoming more transparent about their practices.
Waterford Wedgwood Royal Doulton and Jaguar Land Rover are among the brands being transparent about their corporate responsibility through participation in Business in the Community’s 2015 CR Index.
The thirteenth annual list from the charity organization serves as a benchmark for brands to measure their sustainability progress. As Responsible Business Week runs from April 20-26, the brands that shared their efforts publicly will act as examples of companies making a contribution to something greater (see story).
"Global 100 companies demonstrate ambition and achievement on a broad spectrum of indicators. Striving to make the world a better place, they are where people want to work, firms we want to buy from and invest in for the long term," said Toby Heaps, CEO of Corporate Knights, in a brand statement.
The full rankings can be viewed here.
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