In today's corporate landscape, Environmental, Social, and Governance (ESG) criteria have become crucial benchmarks for assessing a company's sustainability and societal impact.
This is because the world is increasingly prioritising ethical practices. As a result, companies are under scrutiny to demonstrate their commitment to ESG principles. This way, companies are not only compelled to reduce their waste, which makes up 25% of the world’s annual waste; they're also made to create suitable labour conditions while adopting proper governance principles.
As a way of highlighting companies already adopting ESG policies and motivating more to do the same, we ranked 500 companies across the globe based on their ESG impact. Here are the top-ranked on our list:
1. Hanwha Corp:
Hanwha is a South Korean conglomerate with operations in a diverse range of industries such as explosives, energy, construction, aerospace, mechatronics, and more. It has been proactive in developing eco-friendly solutions to environmental problems and promoting social welfare. By constructing renewable energy facilities, utilising advanced eco-friendly technology in water treatment, and much more, this multi-industrial conglomerate has undoubtedly succeeded in upholding ESG principles. From renewable energy investments to eco-friendly manufacturing processes, Hanwha is making strides in all ESG dimensions. This is why it continuously received an all-inclusive A rating from KCGS from 2021 to 2023 and also takes the top spot on our list.
2. BYD:
BYD is a Chinese electric vehicle (EV) manufacturer. As a fierce competitor to Tesla, the company is also a leader in sustainable transportation. By ending its production of combustion-powered vehicles to fully focus on electric vehicles in 2022, BYD was able to not only become the world's third largest EV battery producer but also surpass Tesla as the world's top-selling EV manufacturer in 2023. With an ESG score of 67.34 from ESGbook,it's clear that its focus on EVs, energy storage solutions, and green technologies, as well as its commitment to corporate social responsibility, are why it excels in its ESG performance.
3. Ceer:
Operating in Saudi Arabia, Ceer is another EV manufacturer, considered the first of its kind in Saudi Arabia. It focuses on offsetting carbon emissions through its innovative projects. By utilising renewable energy and implementing sustainable practices, Ceer contributes positively to the environment while also improving societal welfare through the creation of new and valuable job opportunities.
4. Tesla:
Well known for its electric vehicles and renewable energy endeavours, this American company remains a frontrunner in ESG rankings. Tesla's innovative technologies, commitment to clean energy, and transparent governance practices have propelled it to the top, despite occasional controversies.
5. Quadrofoil:
Quadrofoil is a Slovenian company that builds electric boats, bringing sustainability to the maritime industry. It uses hydrofoil technology to create futuristic battery-powered watercraft that are noiseless and can seamlessly navigate waters. In this manner, Quadrofoil helps reduce water pollution and reliance on fossil fuels while also promoting eco-tourism and marine conservation efforts, earning it a top spot on our list.
6. Zenrin:
Zenrin is a Japanese map publishing company specialising in digital mapping systems for cars. By partnering with Pioneer to develop excellent navigation systems for EVs to make them more convenient and easier to drive, it helps accelerate the shift to new energy vehicles, thereby reducing carbon emissions and the reliance on fossil fuels. Zenrin's efforts to make EVs a more appealing option as a way of achieving carbon neutrality, as well as its societal contributions, make it a high-ranking ESG company.
7. Tetra Aviation:
Pioneering electric plane models, Tetra Aviation is a Japanese start-up revolutionising air travel with its eVTOL aircraft. Its ESG ranking is elevated by its efforts to promote sustainable aviation, address environmental concerns associated with traditional aircraft, and make air travel more convenient and comfortable.
8. The Catalyst Fund:
The Catalyst Fund is a global VC fund provider and start-up accelerator primarily investing in Africa. It provides venture capital (VC) funds for eco-conscious projects that drive positive social and environmental change. By supporting sustainable businesses and initiatives across the continent, The Catalyst Fund contributes to inclusive growth and development, thereby promoting ESG principles.
9. Triconti ECC:
Triconti ECC is a female-owned company based in the Philippines that focuses on providing clean energy solutions to the country. Established in 2014, the company's ESG efforts are witnessed through its use of wind energy as a renewable power source to not only reduce carbon emissions but also provide cheaper energy alternatives to members of society. To further drive its ESG efforts, Triconti also delivers project development and technical assistance to wind projects within and outside the Philippines.
10. Volocopter:
Similar to Tetra Aviation, this German aircraft manufacturer specialises in designing electric helicopters, or eVTOL aircrafts, as air taxis for urban cities. Volocopter stands at the forefront of urban air mobility innovations, ensuring zero in-flight emissions as well as a silent and safe transport alternative for consumers. Because of this, its ESG ranking reflects contributions to reducing traffic congestion, carbon emissions, and noise pollution in urban environments.
11. JéGO:
Another high-ranking ESG company worth mentioning is JéGO Technologies, Inc. JéGO is the first black-owned autonomous vehicle manufacturer based in the US. Established by Nigerian-born engineer Frederick Akpoghene, the company specialises in developing self-driving pods and buses. JéGO aims to "save lives, drive businesses forward, and empower individuals to embrace clean, shared, and innovative e-mobility opportunities." This way, it addresses both environmental and social needs. Its ESG ranking comes from its provision of clean transportation solutions while connecting consumers to mobile healthcare and other business services with its innovative self-driving technology.
Essentially, the ESG rankings of these companies reflect their efforts to integrate sustainability, social responsibility, and ethical governance into their business practices. While each company has strengths in different areas, a persistent commitment to ESG principles is crucial for long-term success and positive societal impact. Additionally, with constant increases in fines and penalties for ESG violations, adhering to ESG principles is becoming increasingly important.
Learn more about our ESG ranking here and see where you compare. To also learn how you can improve your ESG score, check out this short guide to ESG.
What did you think about the top-ranked companies on Redcity's Global 500 ESG ranking? Comment below.