Recently As You Sow and Corporate Knights released the inaugural version of the Carbon Clean 200TM (Clean200TM), a list of 200 clean energy companies.
The shift from fossil fuels to green energy makes environmental sense, but does it make economic sense? They asked the question: which companies currently are profiting from making the decision to participate in the clean transition and what is the best way to spot them?
Who is on the list?
Here is the top 20. You can see the full list here.
|Short Name||Country HQ||Total Rev. (USD)||Est. Clean Rev. (USD)||Clean Energy product/service examples|
|TOYOTA MOTOR||Japan||$236,785,844,094||$40,253,593,496||Hybrid, electric, fuel cell vehicles|
|SIEMENS AG-REG||Germany||$86,893,708,535||$14,771,930,451||Renewable energies, transmission, smart grids, energy storage, public transport|
|JOHNSON CONTROLS||US||$37,179,000,000||$13,756,230,000||Building energy efficiency systems and batteries|
|SCHNEIDER ELECTR||France||$29,570,624,562||$10,941,131,088||Energy management|
|PANASONIC CORP||Japan||$62,972,426,333||$10,705,312,477||Renewable energies and batteries|
|EMERSON ELEC CO||US||$22,304,000,000||$8,252,480,000||Energy management|
|VESTAS WIND SYST||Denmark||$9,349,601,002||$7,012,200,751||Wind power|
|PHILIPS LIGHTING||Netherlands||$8,286,212,926||$6,214,659,695||LED lights|
|ABB LTD-REG||Switzerland||$35,481,000,000||$6,031,770,000||Renewable energies, transmission, smart grids, energy storage, public transport|
|KONINKLIJKE PHIL||Netherlands||$26,911,044,364||$4,574,877,542||Energy efficient lighting|
|DONG ENERGY A/S||Denmark||$11,070,372,627||$4,096,037,872||Wind power|
|XINJIANG GOLD-A||China||$4,750,100,957||$3,562,575,718||Wind plants|
|EATON CORP PLC||Ireland||$20,855,000,000||$3,545,350,000||Energy management and superchargers|
|SHARP CORP||Japan||$20,521,318,440||$3,488,624,135||Solar cells|
|BOMBARDIER INC-B||Canada||$18,172,000,000||$3,089,240,000||Rail transportation|
|TESLA MOTORS||US||$4,046,025,000||$3,034,518,750||Electric vehicles|
|FIRST SOLAR INC||US||$3,578,995,000||$2,684,246,250||Solar modules|
|HELLA KGAA HUECK||Germany||$7,131,215,443||$2,638,549,714||Lighting, electronics for electric cars|
How do you get there?
The authors by their own admission think the index has some way to go, but it provides us with a start. To get on the list in the first place you must earn more than 10% of your revenues from New Energy Sources and have a market capitalisation of over $1bn. They relied on the Bloomberg New Energy Finance database, referenced to a company’s revenues to come up with their estimated clean revenue.
They took out a group that included all oil and gas companies and utilities that generate less than 50% of their power from green sources, as well as some socially undesirable companies including weapons producers and child or forced labour and companies who engage in negative climate lobbying.
What did they find?
It is good news for Investors: “The Clean200 nearly tripled the performance of its fossil fuel reserve-heavy counterpart over the past ten years, showing that clean energy companies are providing concrete and measurable rewards to investors,” said Toby Heaps, CEO of Corporate Knights and report co-author. “What’s more, the outstanding performance of this list shows that the notion that investors must sacrifice returns when investing in clean energy is outdated. Many clean energy investments are profitable now, and we anticipate that over the long-term their appeal will only go up as technologies improve and more investors move away from underperforming fossil fuel companies.”
Clearly the shift to green energy, based on this report is driving home the returns to investors in the top companies. Over time as technologies continue to improve in the green energy space and prices drop, making smart decisions about energy consumption and the funding of it will make not only environmental sense but economic sense to organisations of all sizes.