Methodology: How TIME and Statista Determined the World’s Most Sustainable Companies of 2024
It’s one thing for a company to give lip service to helping the environment; it’s another for its leaders to make trackable, public commitments to doing better for the planet—and follow through on them. For the first time, TIME and data firm Statista have created a rigorous methodology with which to measure the world’s most sustainable companies for 2024. The companies at the top of the list have signed on to some of the most respected climate programs, including the 1.5°C target from the Science Based Targets initiative (SBTi), and receive high scores from CDP (formerly the Carbon Disclosure Project). TIME and Statista further held companies to high standards for their Scope 1 and 2 emissions and energy consumption relative to company size, emissions reductions in 2021 and 2022 (the most recent years fully reported), and proportion of renewable energy used by the company’s operations. (Scope 1 emissions are directly caused by a company; Scope 2 are indirectly created when a company purchases power.) And, perhaps most importantly, many of the top companies have incorporated sustainability into their business models.
Schneider Electric, for instance, which is based in France and tops the list, creates software and services for energy management. It has not only set ambitious targets to reduce its own emissions—carbon neutral by 2025—but also helps its customers reduce emissions and become more energy efficient through its Sustainability Business. It has its own sustainability impact program to track its performance, and has also reduced emissions across its supply chain. Schneider has received a climate score of “A” from the CDP for 12 years in a row. “We’ve positioned the company to be an impact company,” CEO Peter W. Herweck said on a recent earnings call.
While many companies that ranked highly are in industries that don’t make many physical products—like banking, tech, and consulting—there were companies that showed sustainability is possible even if you make things. Illumina, the U.S. biotechnology company that’s fifth on the list, recently debuted its most powerful gene sequencer while also reducing packaging waste by 90% from the previous model. Moncler, the Italian luxury fashion house, ranked third on the list by using recycled materials, recycling more than 80% of its nylon scraps in 2023, and using 100% renewable energy at its directly managed offices, stores, factories, and logistics hubs. “While we take pride in this achievement, we are aware much remains to be done,” said Remo Ruffini, chairman and CEO of Moncler S.p.A, when the company was named to the Dow Jones Sustainability Indices in 2023.