Infosys ranks in top 100 in the Sustainable Investing G1000

Posted on January 25, 2011 by


Factoring in the environmental, social and governance performance of the target companies is becoming a mainstream practise across investors. Given the need for this data, a number of rankings and ratings are becoming available to the investors to determine the long term sustainability, risks and mitigation plans for their portfolios. One such tool is the ‘The Global 1000 Sustainable Performance Leaders’ launched by CRD Analytics. CRD Analytics is a provider of independent sustainability investment analytics. The Global 1000 Sustainable Performance Leaders, is the result of filters, screens, algorithms and forced-ranking of over 5,000 Companies that are publicly traded on major global exchanges, have a minimum market capitalization of $1 billion USD and have published a sustainability report with full year environmental, social, governance (ESG) data.

G1000 Ranking – Features

The ranking is CRD Analytics’ Smartview® proprietary methodology which drives the NASDAQ OMX CRD Global Sustainability 50 Index. It uses 200 individual performance metrics including traditional financials and ESG data as well. This methodology also incorporates the Global Reporting Initiative G3 Indicators, as well as several additional indicators that have been developed over time by CRD.

Noteworthy feature of the ranking is performance by economies – Japan ranks first with 191 reports out of 1000 highest performing sustainable companies. USA ranks second with 163 and UK third with 144. Sector-wise, metal and mining sector (as expected from the sheer environmental impact the class has) leads with 68 companies, chemical companies and commercial banks (again expected given the investor nature and therefore the due diligence on ESG front) come second with 63.

Indian Companies

Significant number of Indian companies does eliminate a large number of companies from being considered for the ranking. However – there are 4 Indian companies from India (or with Indian origin) in the G1000 list. The 4 companies and their details are listed as under

Company Name Sector Rank and movement against last year
Infosys Technologies IT Services 62(+58)
Tata Consultancy Services IT Services 139(+27)
Vedanta Resources PLC Metals & Mining 376(+265)
ITC Tobacco 670(+349)

While the representation of Indian companies in the overall 1000 companies is miniscule, the fact that leading Indian companies such as Infosys are being ranked within first 100 corporations across the globe and the pace rising in the ranks – especially on a difficult to define parameter such as ESG is really appreciable.

With rising awareness of significance of ESG performance to the corporate brand equity and ultimately valuations will lead to dedication of more resources and gain in quality.

Contact Agneya Carbon Ventures for knowing more about GRI based sustainability reporting

 

Reference

1. http://www.csrwire.com

2. http://www.justmeans.com/clientlist?type=insight&page=1

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Posted in: Sustainability