In this article we are going to list the 15 Most Sustainable Companies In the United States. Follow this link to skip ahead and jump to the 5 Most Sustainable Companies In the United States.
Companies are established generally with only one goal in mind: profit. When a company makes money, that profit flows to stakeholders. And fact of the matter is, there is no other method to make as much money as owning a wildly successful business. Take a look at the richest people in the world and you'll see that most of them are founders and/or CEOs of a major company.
However, times change and priorities shift, and simply making profits and recording high revenues are no longer the only indicators of a company's success. One metric that indicates the company's success is sustainability. For a company to remain competitive and attractive to both customers and investors, sustainability is now a core issue to focus on.
So what exactly makes a company sustainable? Well, a sustainable company refers to an enterprise which addresses the impact that the business has on the environment and society. A company which is sustainable doesn't just focus on making profits, but also works for the betterment of society. As we are consuming more and more resources, and in a way this has a very negative impact on the environment, such as climate change and global warming. And even though there are a lot of practices being mentioned on how individuals can lower their carbon footprint, it is important to note that the vast majority of greenhouse gases, which are responsible for climate change, are being emitted by major companies. Hence, it is very important that companies also take actions to reduce their carbon footprint.
Depending on countries, there is strict action being taken by governments as well to ensure that green initiatives are given priority and precedence. For example, the European Union has pledged at least 550 billion euros over the next seven years, while the new US President Joe Biden recently rejoined the Paris Climate Accord, as well as committing $2 trillion to fight climate change. Countries such as Japan, China and South Korea have made serious commitments towards carbon neutrality as well. Many regulations have also been put through which ensure that listed companies in their annual reports have to show how they are promoting sustainability and helping society in addition to their core business.
In this way, executives of major companies have realized that incorporating sustainability is integral to the success of a company, even though not many companies have actually been able to implement the same properly. But why are companies moving towards sustainability, other than because of regulations? Well, that's because of the fact that many investors have developed environment, social and governance (ESG) metrics based on which they decide in which companies to invest in. There is further research which shows that high ESG ratings result in lower cost of equity and lower cost of debt, and hence, is actually even more beneficial for such companies.
Take Cisco Systems Inc (NASDAQ:CSCO) for example. Not only does Cisco Systems Inc (NASDAQ:CSCO) rank as one of the top employers, according to Fortune, but it's also one of the most sustainable companies in the United States. In 2020, Cisco Systems Inc (NASDAQ:CSCO) got more than 80% of its electricity from renewable sources. Additionally, Cisco Systems Inc (NASDAQ:CSCO) has a $100 million fund under its Cisco Foundation aimed at grants and projects for reducing climate change. In addition, some companies are setting ambitious long-term goals. Intel Corporation (NASDAQ:INTC), another entrant in our list of most sustainable companies in the United States, aims to use 100% of electricity from renewable sources across all of its manufacturing operations around the world by 2030, as well as to achieve a net positive water use and zero waste. So far, Intel Corporation (NASDAQ:INTC) managed to obtain more than 80% of energy use from renewable sources, conserved 7.1 billion gallons of water (vs a 2030 target of 60 billion) and sent 5% of its waste to landfills in 2020. Cisco Systems Inc (NASDAQ:CSCO) and Intel Corporation (NASDAQ:INTC) are just two examples of companies that have made sustainability a major part of their activity and of their corporate social responsibility. Corporate Knights has compiled a list of most sustainable companies in 2021, with Schneider Electric, a French electric company, ranking at the top. And while it was a bit surprising to find out that none of the top 5 most sustainable companies globally were in the United States, the top 100 still included 20 entrants from the United States. From this ranking we have selected 15 most sustainable companies in the United States.
15. Prologis Inc (NYSE:PLD)
Sustainability score of the company for 2021: 59.3%
Prologis Inc (NYSE:PLD) is a real estate investment trust (REIT) and is headquartered in the city of San Francisco in California. Being an industrial REIT that focuses on logistics facilities, Prologis Inc (NYSE:PLD) has many opportunities to focus on sustainability. Prologis Inc (NYSE:PLD) uses sustainable design for its warehouses that make use of solar energy, efficient lighting, onsite recycling, as well as cool roofs that aim to reduce the urban heat island effect.
14. Analog Devices, Inc. (NASDAQ:ADI)
Sustainability score of the company for 2021: 60.2%
Analog Devices, Inc. (NASDAQ:ADI) is one of the biggest semiconductor companies in America and also specializes in signal processing, power management technology and data conversion. As part of its long-term sustainability strategy, Analog Devices, Inc. (NASDAQ:ADI) aims to become carbon neutral by 2030 and to achieve net zero emissions by 2050. In addition, Analog Devices, Inc. (NASDAQ:ADI) designs its products in such a way so that they can serve longer and to minimize the usage of materials for manufacturing and packaging.
13. Xerox Holding Corp. (NYSE:XRX)
Sustainability score of the company for 2021: 61.1%
Next in line in our list of most sustainable companies in the United States is Xerox Holdings Corp (NYSE:XRX). Xerox Holdings Corp (NYSE:XRX) is one of those companies where you associate the name of the company with the product, such as Velcro. Among Xerox Holdings Corp (NYSE:XRX)'s sustainability initiatives are responsible paper sourcing and use, lowering carbon footprint of its products, as well as reducing use and emissions of toxic chemicals and heavy metals across its supply chain.
Copyright: smileus / 123RF Stock Photo
12. Intel Corporation (NASDAQ:INTC)
Sustainability score of the company for 2021: 64.1%
As mentioned earlier, Intel Corporation (NASDAQ:INTC), one of the biggest semiconductor company in the world, also has a number of initiatives aimed towards sustainability. Moreover, to emphasize its commitment, Intel Corporation (NASDAQ:INTC) linked its executive and employee compensation to corporate social responsibility factors, including sustainability. Intel Corporation (NASDAQ:INTC) has also partnered with governments, businesses, and nonprofits to help reduce their environmental impact.
11. Sims Limited
Sustainability score of the company for 2021: 64.5%
It is no surprise that Sims Metal Management is among the most sustainable companies in the United States, as it is the leading metals and electronics recycling company in the world. The company has specialized in both ferrous and non ferrous metals in addition to waste recycling. One of Sims Limited's goals is to be the safest and most responsible recycling company in the world.
10. Comerica Incorporated (NYSE:CMA)
Sustainability score of the company for 2021: 66.5%
Financial services company Comerica Incorporated (NYSE:CMA) is a major player in the industry and has operations in multiple states including California, Arizona, Michigan and Florida and it is also the biggest commercial bank in the state of Texas as well as among the biggest banking companies in the US. It's worth mentioning that Comerica Incorporated (NYSE:CMA) is the only financial company in our list of most sustainable companies in the US. In 2020 alone, Comerica Incorporated (NYSE:CMA) managed to cut by 20% its greenhouse gases emissions and waste to landfill. In addition, it decreased by 30% its water consumption and obtained a 50% reduction in paper usage compared to 2019.
Copyright: kritchanut / 123RF Stock Photo
9. HP Inc (NYSE:HPQ)
Sustainability score of the company for 2021: 67.2%
HP Inc (NYSE:HPQ) is most famous for its production of laptops and printers, which are used not just in America, but across the world and for six years from 2007 to 2013, was the leading PC manufacturer in the world. In 2020, HP Inc (NYSE:HPQ) reported revenues of at least $56 billion while its operating income was $3.46 billion, in addition to having 53,000 employees. HP Inc (NYSE:HPQ) has committed to using its technology, expertise and influence to create a positive impact globally, in different fields such as healthcare, sanitation and drinking water among others.
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8. Ball Corporation (NYSE:BLL)
Sustainability score of the company for 2021: 67.5%
The eighth spot in our list of most sustainable companies in the United States is Ball Corporation (NYSE:BLL). Headquartered in Colorado, Ball Corporation (NYSE:BLL) has revenues of more than $11 billion annually and started off as lids as well as glass jars, before venturing into other industries, such as the aerospace technology industry. Ball Corporation (NYSE:BLL) also became the biggest manufacturer in the world for food containers as well as recyclable metal beverage containers. The aluminum produced by Ball Corporation (NYSE:BLL) is sustainable, and the company also provides financial support to non-governmental organizations and have sustainability goals reviewed by third parties.
7. Autodesk, Inc. (NASDAQ:ADSK)
Sustainability score of the company for 2021: 67.8%
Autodesk, Inc. (NASDAQ:ADSK) is one of the biggest software companies in America, and is headquartered in California. The company was founded 39 years ago in 1982 and is responsible for AutoCAD, or computer-aided design software which is used across the world, especially in 3D applications. Autodesk, Inc. (NASDAQ:ADSK) is completely committed to improving energy and material productivity and provides financial grants and software donations.
6. Hewlett Packard Enterprise Co (NYSE:HPE)
Sustainability score of the company for 2021: 71.5%
Hewlett Packard Enterprise Co (NYSE:HPE) is an information technology company was formed 5 years ago as a spin-off of HP, and provides services in servers, networking, storage and consulting, as well as financial services. The company had revenues of $27 billion in 2020. Hewlett Packard Enterprise Co (NYSE:HPE) has committed to ensure that they have a sustainable plan to ensure technology demands are met over the next few decades, while also operating a renewal energy laboratory.
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Disclosure: None. 15 most sustainable companies in the United States is originally published at Insider Monkey.