Three key questions guide the analysis: To what extent are a company’s investments geared toward sustainability? Where does its sustainable revenue come from? And how fast is its sustainable revenue growing?
To answer these questions, the Corporate Knights research group assesses eligible companies and scores them using three equally weighted indicators:
- The share of revenue from sustainable products and services
- The share of investments directed toward sustainable projects
- The sustainable revenue momentum, which is the compound annual growth rate in sustainable revenue from 2022 to 2024
Companies can also earn a bonus of up to 5% for linking CEO pay to sustainability targets. Additionally, they face deductions of up to 5% each for legal sanctions and workplace fatalities. Companies are benchmarked against industry peers across 64 groupings.
