1. Exclusion of Non-Sustainable Businesses: The first step excluded companies involved in non-sustainable industries like fossil fuels or deforestation. Additionally, companies appearing on negative lists related to sustainability issues, such as those identified as carbon majors or associated with environmental catastrophes, were automatically disqualified. These lists include the 2024 Forest 500 Report, the 2024 Carbon Majors, and the 2023 PERI Top 100 Polluter Indexes: Air, Water, Greenhouse, Toxic Greenhouse, Suppliers, Coal. This step also considered significant scandals or controversies related to sustainability.
2. Commitment & Ratings: The second step involved assessing companies based on external sustainability ratings and commitments from reputable organizations. Key criteria included CDP ratings, adherence to the UN Global Compact, alignment with the Science Based Targets initiative (near-term and long-term), inclusion in the S&P Global Sustainability Yearbook, participation in the UNFCCC Race to Zero campaign, and MSCI ESG & SRI evaluations.
TIME Staff
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