In over a few decades, we have seen many companies across the globe choosing to incorporate sustainability into all areas of business and operations. For the business to be sustainable, it must comprise of the following:
- Preserve the environment and conserve natural resources.
- Build social equity, support employee well-being and promote fair trade.
- Maximize long-term profitability and promote growth.
This article focuses on introducing the sustainability companies to watch in 2020. The list is based on the top 20 of Global 100 most sustainable corporations in the world index in 2019. Here is list.
Chr. Hansen Holding A/S (Denmark)
Overview
Chr. Hansen Holding A/S develops and produces natural ingredients such as cultures, enzymes, probiotics, and natural colors. The Company offers products for the food, nutritional, pharmaceutical, and agricultural industries. Chr. Hansen was founded in 1874 and headquartered in Copenhagen, Denmark.
Where they are now
Social responsibility is an integral part of Chr. Hansen’s vision to improve food and health for current and future generations. In 2019, Chr. Hansen was ranked the world’s most sustainable company by Corporate Knights. Revenue in the 2017/18 financial year was EUR 1,097 million.
Looking to the future
Chr. Hansen is now innovating for a sustainable future! The concept is rather simple – better farming, good health, and less waste. The company is committed to advancing the adoption of natural ingredients and bioscience solutions to help develop a more sustainable agriculture, enhance human and animal welfare and reduce food waste.
Kering S/A (France)
Overview
Kering SA is a France-based company engaged in the fashion industry. It develops an ensemble of houses in fashion, leather goods, jewelry and watches through a portfolio of such brands as Gucci, Bottega Veneta, Saint Laurent, Balenciaga, Alexander McQueen, Stella McCartney, Christopher Kane, and Brioni, Boucheron. In addition, the Company offers sports clothing and accessories through such brands as Puma, Volcom, and Cobra. Kering SA operates worldwide. Kering SA was founded in 1963 and headquartered in Paris, France.
Where they are now
Kering SA is one of the sustainability leaders in 2019. It currently aims to apply sustainability to all the brands in the portfolio, The company now follows an ambitious 2025 Sustainability Strategy in the following:
- CARE about Kering’s impact on the planet, on climate change, on natural resources
- COLLABORATE for the good of Kering’s employees, suppliers, and clients
- CREATE pioneering ideas to safeguard our rich heritage and empower future generations
In 2018, Kering SA brought in approx. EUR 10 billion in total revenue.
Looking to the future
2025 Sustainability Strategy will call for the company to apply a holistic approach, covering both the environmental and social sides. This work encompasses its efforts inside and outside the company, and along the entire supply chain.
Neste Corporation (Finland)
Overview
Neste Oyj is a Finland-based company engaged in the refining and marketing of petroleum and petroleum products. The Oil Retail operates a network of over 1,100 stations in Finland, Russia, the Baltic states and Poland, selling own products as well as lubricants and chemicals. The company was founded in 1948 and headquartered in Espoo, Finland.
Where they are now
Neste is an industry leader in sustainability and climate change combat. Neste makes its greatest sustainability contribution through refining high-quality renewable products, such as Neste MY Renewable Diesel, from low-quality waste and residues. In 2016, replacing fossil products with Neste’s renewable products reduced climate emissions by 6.7 million tons, equaling the removal of 2.4 million passenger cars from the roads for a full year. Neste brought in approx. EUR 14.9 billion in total revenue in 2018.
Looking to the future
In 2016, Neste launched a project called – Pre-Order the Future. The objective of the Pre-Order the Future project is to research alternatives that help build a better future for the planet. EduCycle, an augmented reality game on climate change, was born as a part of this entity. EduCycle enables understanding the causes and effects our choices have on our environment and quality of everyday life.
Orsted (Denmark)
Overview
Orsted A/S is a Denmark-based energy company engaged in procuring, producing, distributing and trading energy and related products in Northwestern Europe. The Company operates through three segments: Wind Power, engaged in the development, construction and operations of wind farms; Bioenergy and Thermal Power, responsible for the generation of electricity and heat from thermal power stations; and Distribution and Customer Solutions, responsible for the purchase, sale, and distribution of energy. The company was founded in 2006 and headquartered in Fredericia, Denmark.
Where they are now
Orsted’s main goal for sustainability is to combat climate change in order to transform society with CO2 neutral solutions. For this reason, it has made a commitment to fully phase out coal by 2023 and has a focus on green energy such as offshore wind to replace it as an energy source. The company’s resolve was further demonstrated by its 2016 name change which saw it divest itself of former name DONG Energy (Danish Oil and Natural Gas). Orsted brought in approx. EUR 11.55 billion in total revenue in 2018.
Looking to the future
Orsted will continue in the effort to reduce CO2 emissions by investing in R&D for new ways to produce energy in more years ahead.
GlaxoSmithKline plc (United Kingdom)
Overview
GlaxoSmithKline PLC is a global healthcare company. The Company operates through two segments: Pharmaceuticals and Vaccines. The Company focuses on its research across six areas: Respiratory diseases, human immunodeficiency virus (HIV)/infectious diseases, Vaccines, Immuno-inflammation, Oncology, and Rare diseases. GSK was founded in 2000 and headquartered in London, United Kingdom.
Where they are now
In 2018, GSK announced a new set of commitments across three focus areas, to deliver the greatest possible long-term impact in improving health around the world. The main purpose of this initiative is to help people do more, feel better and live longer with the help of the following:
- By using the company’s science and technology to address health needs (i.e. new medical innovation)
- By making the company’s products affordable and available (i.e. pricing, product reach, and healthcare access)
- By being modern employers (i.e. inclusion, diversity, health, well-being, and development)
- Being a responsible business (i.e. reliable supplies, ethics/values, and data & engagement.
GSK brought in approx. GBP 30.821 billion in total revenue in 2018.
Looking to the future
GSK’s future looks very bright. There are a few developing HIV drugs in the pipeline. This will continue to serve as the bread and butter for GSK. The future revenue is forecasted to approx. 15% by 2022.
Prologis, Inc. (USA)
Overview
Prologis, Inc. is a global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of June 30, 2019, the company owned or had investments in, on a wholly-owned basis or through co-investment ventures, properties and development projects expected to total approximately 786 million square feet in 19 countries. The company was founded in 2011 and headquartered in San Francisco, USA.
Where they are now
Prologis focuses on construction projects that are sustainable. Prologis’ objectives continue to focus on:
- High-quality, resilient design and construction
- Innovation in renewable energy and energy efficiency
- Water, waste and carbon emission reduction
- Working with supply chain partners to support sustainability objectives
- Measuring and reporting its carbon footprint
- Tracking and reducing climate risk through building design.
To date, the company’s portfolio has 304 sustainable building certifications in 17 countries. Prologis brought in approx. USD 2.8 billion in total revenue in 2018.
Looking to the future
Prologis is looking for more ways to achieve the goal of efficient warehouses. This can be seen as more solar power systems are added to warehouses. The company is on track to achieve its goal of 200 MW of solar generating capacity within its global portfolio by 2020.
Umicore (Belgium)
Overview
Umicore SA is a Belgium-based global materials technology group. It focuses on application areas, such as materials science, chemistry, and metallurgy. Umicore was founded in 1989 and headquartered in Brussels, Belgium.
Where they are now
Umicore has a strategic focus on clean mobility materials and recycling with the overriding goal of sustainable value creation based on an ambition to develop, produce and recycle materials in a way that fulfills its mission: materials for a better life. The company brought in approx. EUR 3.3 billion in total revenue in 2018.
Looking to the future
Umicore will be focusing on the following agendas in the upcoming years:
- Clear leadership in clean mobility materials and recycling
- Double in size of the business in terms of earning
- Rebalance the portfolio and earnings contributions
- Turn sustainability into a competitive edge
Banco do Brasil S.A. (Brazil)
Overview
Banco do Brasil is a global financial institution with expertise in the rural and agribusiness areas. It is the largest bank by assets in Brazil and all of Latin America. It is also one of the oldest banks in continuous operation in the world. Banco do Brasil was founded in 1808 and headquartered in Brasilia, Brazil.
Where they are now
Banco do Brasil has formed the sustainability policies in the following areas: value generation, eco-efficiency, climate changes, codes of ethics & standards of conduct, publications and sustainability institutional presentation. In 2019, it also positions itself in the sector called – green economy. The company gives away loans for renewable energy, energy efficiency, sustainable construction, sustainable transport, sustainable tourism, water, fishing, forest, sustainable agriculture, and waste management. In 2017, Banco do Brasil brought in USD 53 billion in total revenue.
Looking to the future
The company will continue to advocate for sustainability policies for more years to come.
Shinhan Financial Group Co. (South Korea)
Overview
Shinhan Financial Group Co., Ltd. provides commercial and consumer banking related financial and investment services. It operates through the following divisions: retail, corporate and investment banking, credit card, wealth management, brokerage, and insurance. The company was founded on September 1, 2001, and is headquartered in Seoul, South Korea.
Where they are now
Shinhan emphasizes the role of compassionate finance in the way it does business. This is a proven commitment by Shinhan Financial to join global efforts toward a more sustainable financial system. It’s also a company’s mission of creating a virtuous cycle of shared prosperity. Shinhan brought in $18.79 billion in total revenue in 2018.
Looking to the future
Shinhan is hoping to become the leader in the financial sector, especially in strong advocacy for the sustainable financial system across the globe.
Taiwan Semiconductor (Taiwan)
Overview
Taiwan Semiconductor Manufacturing Company Limited engages in the computer-aided designing, manufacturing, packaging, testing, and selling integrated circuits and other semiconductor devices. It was founded in 1987 and headquartered Hsinchu Science and Industrial Park, Taiwan
Where they are now
For sustainability, Taiwan Semiconductor focuses on green manufacturing, the management of energy, waste, air pollution, innovation & service, and responsible supply chain. The company brought in $32.891 billion in total revenue in 2017.
Looking to the future
In addition to pursuing business growth and breakthroughs, Taiwan Semiconductor aims to become a practitioner of green power to raise environmental and social value. The main goal is to facilitate coexistence and mutual prosperity between the business and the environment.
Pearson PLC (United Kingdom)
Overview
Pearson Plc is an education company, which engages in the business of education, business information, and consumer publishing markets. It operates through the following segments: North America, Core, Growth, Penguin Random House, and Corporate. The company was founded by Pearson Samuel in 1844 and is headquartered in London, United Kingdom.
Where they are now
Pearson has decided to use its platform to address the issue of education inequality. By following the UN Sustainable Development Goals, Pearson has instituted the following pillars to address this issue: being a trusted partner, reaching more learners, and shaping the future of education: innovation, inspiration, overall impacts, business benefits, and social & environment benefits. The company brought in $1.2 billion in total revenue in 2018.
Looking to the future
In 2020, the is the sustainability plan Pearson will be focusing on:
- Reach more learner (improve access to and affordability of products and services and Collaborate to reach underserved learners)
- Shape the future of learning (Promote education for sustainable development)
- Be a trusted partner (protect the natural environment and build a sustainable supply chain)
Outotec Oyj (Finland)
Overview
Outotec Oyj is a Finland-based company active within the mineral industry. It provides process solutions, technologies, and services for the mining and metallurgical industries. Additionally, the Company provides development and life cycle services. The company was founded in 2006 and is headquartered in Espoo, Finland.
Where they are now
Outotec focuses on the sustainable use of Earth’s natural resources and helps consumers meet their sustainability goals. Outotec’s core competencies across the minerals and metals processing value chains have been built up over more than 100 years of continuous business operation. Outotec further expanded its handprint by developing innovative applications for renewable energy, water management, and recycling. The company brought in EUR 1,276.5 billion in total revenue in 2018.
Looking to the future
The company will continue its sustainability efforts to protect the environment and combat climate change.
McCormick & Company (USA)
Overview
McCormick & Company, Incorporated is engaged in manufacturing, marketing and distributing spices, seasoning mixes, condiments, and other flavorful products to the food industry, including retailers, food manufacturers, and foodservice businesses. The Company’s sales, distribution and production facilities are located in North America, Europe, and China. McCormick & Company was founded in 1889 and headquartered in Hunt Valley, Maryland, USA
Where they are now
McCormick’s dedication to sustainability is articulated in its Purpose-led Performance (PLP) Report, which emphasizes the company’s work to do what’s right for the long-term vitality of people, communities and the planet while delivering top-tier financial results. The company continues to make progress on its commitments to source its iconic ingredients sustainably, improve the resilience and map the contributions of small farmers, especially women, and reduce the company’s environmental impact by lowering its carbon footprint and reducing solid waste. The company brought in $5.41 billion in annual revenue in 2018.
Looking to the future
McCormick & Company has set its environmental goals for 2025 and they are the following:
- 20% reduction of greenhouse gas (CO2)
- 20% reduction of packaging
- 20% reduction of water usage
- 80% reduction of solid waste
- 100% reused, recycled, or repurposed of plastic packaging
Cisco Systems, Inc. (USA)
Overview
Cisco Systems, Inc. designs, manufactures and sells Internet Protocol (IP)-based networking and other products related to the communications and information technology (IT) industry and provide services associated with these products and their use. The Company provides products for transporting data, voice, and video within buildings, across campuses, and globally. Cisco Systems, Inc, was founded in 1984 and headquartered in San Jose, California, USA.
Where they are now
Cisco Systems receives great results from its sustainability initiatives in 2018:
- Giving away $383 million from Cisco Foundation
- Committed to 40% renewable energy
- Supply chain ranked #3 of the top 25
- 45% of greenhouse gas reduction
Looking to the future
By FY2025, Cisco is committing:
- To reduce our foam packaging use by 75%, as measured by weight
- To improve product packaging efficiency by 50%, as measured by package volume per weight of product
- That 70% of Cisco’s manufacturing suppliers by spend will achieve a “zero waste” one or more site(s)
Natura Cosmeticos S.A. (Brazil)
Overview
Natura Cosmeticos SA is engaged in the development, manufacture, distribution, and sale of cosmetics, producing a full range of cosmetic products. The company products include deodorants, sunscreens, lotions, creams, lipsticks, and perfumes. The company was founded by Antônio Luiz da Cunha Seabra and Guilherme Peirão Leal in 1969 and is headquartered in Sao Paulo, Brazil.
Where they are now
Natura Cosmeticos brought in $10.9 billion in total revenue in 2018. The company also took the issues of sustainability to its heart since its inception 50 years ago. Here is what they have achieved:
- Preserving the Amazon rainforest. The revenue from its products helps support more than 2000 Brazilian farmers and preserve 18,000 sq km of the Amazonian rain forest.
- Protect the climate. Natura products are 100% carbon neutral since 2007.
- Reduce waste. Now committed to 100% recycled plastic or green plastic for packaging.
- Against animal testing.
Looking to the future
The company will continue on the success on the sustainability efforts leading into the future. Natura has recently become the Certified B Corp. CBCs are a new kind of business that balances purpose and profit. They are legally required to consider the impact of their decisions on their workers, customers, suppliers, community, and the environment.
ERG S.p.A. (Italy)
Overview
ERG SpA is an Italy-based independent power producer active in the renewable energy sector, which generates energy mostly from wind, solar, hydroelectric and thermoelectric sources. The Company operates through its subsidiaries in Europe, mainly in Italy, France, and Germany. ERG was founded in 1938 and is headquartered in Genoa, Italy.
Where they are now
ERG is committed to the UN’s Sustainable Development Goals (SDGs). The company designed its sustainability initiatives by focusing on the development of renewable sources of energy such as solar, environmental responsibilities, and supplier screening. ERG brought in EUR 1,027 million in total revenue in 2018.
Looking to the future
ERG has come up with the new sustainability blueprint for 2018-2022:
- The development of renewable electricity production, which fully symbolises the commitment to combating climate change and which will contribute to clean energy, responsible consumption and production and climate action.
- The environment, work conditions and welfare which will impact on quality education and decent work and economic growth.
- The implementation, at Group level, of the new Anti-Corruption Policy and the new supplier selection procedures, which will impact on peace, justice and strong institutions and partnerships for the goals.
Analog Devices, Inc. (USA)
Overview
Analog Devices, Inc. (Analog Devices) designs, manufactures and markets a portfolio of solutions that leverage high-performance analog, mixed-signal and digital signal processing technology, including integrated circuits (ICs), algorithms, software, and subsystems. The Company operates in the United States, the Rest of North/South America, Europe, Japan, and China. Analog Devices, Inc. was founded in 1965 and headquartered in Norwood, Massachusetts, USA.
Where they are now
Analog Devices brought in approx. $6 billion in total revenue in 2018. For ADI, sustainability means being aware of the larger role in those environments and ecosystems, pursuing a business model and practices that enable innovation-driven growth. ADI strives for sustainability in four primary areas:
- Economic – a business model that is smart, proven, and solid, yet adaptive to meet the evolving needs of the end markets and customers
- Governance – consistency between the company’s values and actions
- Environmental – reducing waste and limiting any negative impact on the environment
- Social – giving back to the many communities in which ADI operates and lives and from which the future employees, customers, and investors will come from
Looking to the future
The company will continue to focus in the sustainability areas mentioned above.
Novartis AG (Switzerland)
Overview
Novartis AG provides healthcare solutions for consumers. The Company is engaged in the research, development, manufacturing, and marketing of a range of healthcare products led by pharmaceuticals. The Company’s segments include Innovative Medicines, Sandoz, Alcon, and Corporate activities. Novartis was founded in 1996 and is headquartered in Basel, Switzerland.
Where they are now
Novartis AGhas emphasized its focus on environmental sustainability, expanding access to healthcare and disclosing its sustainability practices through reporting. The company brought in $51.9 billion in total revenue in 2018
Looking to the future
35% reduction in absolute emissions across the company’s value chain by 2025. It also aims to be water neutral in all areas of operations by 2030.
CEMIG (Brazil)
Overview
Companhia Energética de Minas Gerais SA engages in the generation, transmission, distribution and sale of electricity, gas distribution, telecommunications and the provision of energy solutions. It operates through the following segments: Generation, Transmission, Distribution, and Other Businesses. The Generation segment engages in the generation of electricity through hydroelectric plants, thermoelectric plants, and wind farms. The company was founded by Juscelino Kubitschek de Oliveira on May 22, 1952, and is headquartered in Belo Horizonte, Brazil.
Where they are now
To Cemig, sustainable development means the search for a better quality of life for the current generation and for future generations. It means ethics, transparency, and profitability in its businesses, respect for the environment and social responsibility in its actions. By working this way, Cemig creates value for its shareholders, consumers, and society as a whole. The company brought in $6.5 billion in total revenue in 2018.
Looking to the future
The company will continue to focus in the sustainability areas mentioned above.
Sanofi (France)
Overview
Sanofi engages in the research, production, and distribution of pharmaceutical products. It operates through the following segments: Pharmaceuticals, Human Vaccines, and Animal Health. The Pharmaceuticals segment includes research, development, production and sales activities relating to pharmaceutical products, including prescription, consumer health care, and generic products. The company was founded on April 28, 1994, and is headquartered in Paris, France.
Where they are now
Sanofi’s sustainability initiatives can be seen in the following areas:
- Access to healthcare for the underserved
- Developing communities and employee engagement
- Addressing the environmental challenges
- Upholding ethics and transparency
Looking to the future
Water consumption is expected to reduce in all areas of operations by 25% in 2020.
