Rise of Chinese Electric Vehicle Brands in the League of Most Sustainable Global Corporations
In the recently released 2023 Global 100 Index, which ranks the world's largest publicly traded companies based on their impact on people and the planet, France's Schneider Electric has taken the top spot, moving up 7 places from last year.
Schneider Electric, a leading energy management and automation company, has earned all of its revenue and directed all of its investments towards energy efficiency, electrification, and decarbonisation. This shift towards sustainability has solidified its position as a global leader in the sector.
Vestas Wind Systems A/S, the world's most sustainable company in 2022, remained in third spot in this year's index. The Danish wind turbine manufacturer is responsible for almost a fifth of the world's installed wind power capacity, demonstrating its significant role in the global transition towards renewable energy.
Notably, four firms surged in rankings from last year, all deriving 100% of their revenue and investment from sustainable sources. Among these, China's leading electric vehicle manufacturers, NIO Inc, Yadea Group Holdings Ltd, Li Auto Inc, and XPeng Inc, ranked in the top 50 of the Global 100 list. Yadea, in particular, launched its sodium battery technology this year, which does not rely heavily on rare metals and utilizes more renewable energy resources.
However, not all companies in the index fared as well. Singapore real estate firm City Developments Limited (CDL) fell 17 spots from last year, despite scoring well in clean energy and investment ratings. CDL's pay gap widened this year, with top management earning 78 times more than the average worker, compared to 38 in 2024.
The list continues to be dominated by Western companies, with nearly half (44) from Europe and 22 from the United States and Canada. The number of Asia Pacific companies in the index decreased from 24 to 22 this year, with CapitaLand, a rival Singaporean firm, dropping out of the index.
Sims Limited, an Australian metals recycler, is the greenest company in Asia Pacific in the yearly index. Other new entrants to the index this year include MLS Co Ltd, LG Energy Solution, Ltd, Voltronic Power Technology Corp, and Taiwan Cooperative Financial Holding Co Ltd.
The Global 100 ranking assesses companies against 25 sustainability indicators, including revenue and investment derived from sustainable sources, taxes paid, how much value is created with fewer carbon-based fossil resources, and racial and gender diversity. Despite progress, issues such as racial diversity and pay gaps remain challenges for some companies in the index.
The search results do not provide specific information about which Asian companies were included in the 2023 Global 100 list or their rankings within that list. Taiwan High Speed Rail Corp is the second most sustainable company in the region, but scores poorly for racial diversity.
As the world continues to grapple with climate change and social inequality, the Global 100 index serves as a valuable tool for tracking the progress of companies towards sustainability and social responsibility. The index underscores the need for continued efforts to promote sustainable practices and address social issues in the corporate world.
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