While the CEOs and decision-makers that attended the annual World Economic Forum meeting seemed more worried about things other than climate change (the potential for another Donald Trump presidency and artificial intelligence), they were also more excited about the gathering multitrillion-dollar economic opportunity presented by the transition to a low-carbon sustainable economy. Business is better at playing offence than defence, so I think this may be a good thing.

Corporate Knights’ annual Global 100 ranking of the world’s most sustainable corporations turned 20 this year in Davos. And the corporations that make up the Global 100 are proving that companies that set the standard for sustainability excellence can also outperform the market over time. Now is the time to double down.

These companies show that the climate crisis is far from the back burner for many major players in the business world. Maybe it seems like it has been placed on the back burner simply because it’s becoming ingrained in the way we do business. There isn’t only a moral imperative for corporations to work toward a more sustainable planet; there’s a financial one, too. Here are eight ways the sustainable economy is taking over.

1. In 2024, the average Global 100 company earned 51% of its revenue from sustainable solutions in alignment with the Corporate Knights Sustainable Economy Taxonomy (which measures corporate contributions to the sustainability transition). That’s three times better than the average large publicly traded company with more than US$1 billion in overall revenue, which earned 16% of its revenue from sustainable sources.

2. When it comes to sustainable investments, it’s the same story. Global 100 companies allocated 55% of their total investments (capital expenditure, research and development, and acquisitions) to sustainable themes, versus 17% for the broader universe of companies analyzed.

3. Financially speaking, the Global 100 index has stood the test of time, outperforming its benchmark over the past two decades. It has posted a 295% total return since its inception in February 2005 to the end of 2023 (versus 278% for the MSCI ACWI).

4. The really good news is that the exponential growth of the sustainable economy is not contained to the Global 100 companies; it is now embedded as a dominant macroeconomic growth trend, with large publicly traded companies growing their sustainable revenues and investments at double the rate of general revenues and investments over the past three years. A look inside the Corporate Knights Sustainable Economy Intelligence Database shows that sustainable capital expenditures grew by 56% from 2019 to 2022, compared to 23% for general capital expenditures, while sustainable revenue grew by 84% versus 40% for general revenues over the same period.

5. None of this means we can rest on our laurels. The fossil fuel industry is flush with cash, existentially motivated and ferociously well organized to put up political barriers that delay the inevitable transition to a low-carbon sustainable economy. But fear not: the companies that want swifter climate action in alignment with the Paris Agreement – publicly traded companies signed up to the Science Based Targets initiative (SBTi) – have seven times more economic power (earning US$28 trillion in the most recent fiscal year, according to Corporate Knights calculations) than the US$4 trillion haul made by the fossil fuel industry (itself a huge rise from its recent average of US$1.5 trillion).

6. This economic power must be translated into political power to address barriers to climate action, chief among them unacceptably long permitting times for renewable-energy projects. This is beginning to happen with work led by the Corporate Knights Global 100 Council and others to galvanize the voice of business – not just the green energy companies – as a voice for speeding up climate action. This was demonstrated at COP28 (the first COP agreement to include a renewable-energy target), where business calls spanning all sectors for more clean energy were met with a pledge to triple installed renewable energy to 11,000 gigawatts by 2030.

7. While the fossil fuel industry is more powerful politically, both science and economic power are on the side of companies that want to speed up climate action.

8. While much climate action discussion is devoted to absolute net-zero goals decades away, which can raise hackles and unnecessary existential questions, the current imperative is to focus on speeding up action here and now.

Corporate Knights is here to help organize and provide secretariat support for companies that want to speak out together and ensure that their industry associations are part of the program, so we can make 2024 the year of climate action acceleration.

Our skis are pointed in the right direction, and we’re closing in on the summit (with an electric assist).

Toby Heaps is co-founder and publisher of Corporate Knights. 

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When the World Economic Forum (WEF) released its “Global Risks 2014” report last January in advance of its annual meeting in Davos, Switzerland, it named the “worsening wealth gap” as the year’s biggest risk.

To outside observers, WEF is in many ways the embodiment of that global risk. It is the annual gathering of the world’s super rich, peppered with artists, academics and scientists to boost discussion and enlightenment. About 1,700 private flights are scheduled to swoop down on this Swiss resort town over the next few days, with each return flight costing an estimated $28,000.

Free food will be plentiful, the parties will be lavish, and for those without a hangover, mindfulness guru Jon Kabat-Zinn will lead each morning off with group meditation.

WEF’s “Global Risks 2015” report, released last week, cites international conflict and the world’s growing water crisis as this year’s biggest risks. Income disparity didn’t even make the short list.

Does this mean the wealth gap is narrowing? Quite the contrary. A report released this week by Oxfam International says the problem is getting worse.

Oxfam warns that by 2016 the planet’s wealthiest 1 per cent will control just as much – if not more – of the world’s assets as the 99 per cent combined. Indeed, since 2009 the 1 per cent has expanded its slice of the wealth pie to 48 per cent from 44 per cent. Oxfam contends it will reach, and possibly surpass, 50 per cent sometime next year.

To be fair, if the WEF picked the same No. 1 global risk every year the headline-framing press release would quickly get stale. The reality is that there are, in any given year, many global risks competing for international attention and most of them get discussed in Davos. In fact, the WEF did address the wealth gap ahead of its meeting this week with the release of a 14-point plan of action that tackles everything from minimum wage to corruption.

Elitist as it is, WEF is effective at getting the planet’s wealthiest, brainiest and most politically powerful under one roof for a few days. Bill Gates, John Kerry and happy guy Pharrell Williams won’t solve the world’s problems in one week, but the occasion shines a light on these problems and allows for a sharing of information and commitment that can inspire action, hard as it may be to measure.

WEF is also an occasion that others can piggyback, drawing attention to their own research and causes. The Oxfam report is one of dozens expected to be released during the week. The United Nations Environment Programme, for example, will release a report called “Pathways to Scale,” part of an inquiry into designing a more sustainable financial system. The report will outline how banks, bond markets, and institutional investors can, with the right tools and policy, help redirect the flow of capital to achieve long-term sustainable development.

For 10 years now Corporate Knights has launched the annual Global 100 Most Sustainable Companies in the World ranking from Davos, where we also host an executive roundtable dinner. The dinner is an opportunity for leading business, finance and economic minds – from George Soros to Sir Nicholas Stern – to discuss ways of making capitalism more sustainable. This year’s topic is how to create a favourable investment climate to price carbon.

On Friday morning, Corporate Knights and the Schulich School of Business at York University will host the final round of the second-annual CK-Schulich Business for a Better World MBA case competition, which this year is aimed at making pharmaceutical giant Novartis a sustainable leader among its peers.

Teams from the University of Victoria, Simon Fraser University and Schulich have travelled to Davos to present their business plans in front of a live judging panel. The winning team will take home a $6,000 prize.

Throughout the week, Corporate Knights will file reports from WEF on issues that fall within our sustainable business mandate. We will pay particular interest to discussions around climate action, including a Thursday morning session titled “Closing the Climate Deal,” which is expected to build consensus and momentum toward reaching a global emission-reduction plan in Paris this December.

Many of the WEF sessions will be webcast live, including those with a focus on environmental and social issues. We’ve listed some of those sessions below in case you’d like to tune in. You can search for these on the WEF website, put them in your online calendar and schedule email reminders:

Wednesday 21 January

09.00 – 10.00 (3 a.m. EST)

The New Energy Context

How are technological, economic and geopolitical changes shaping the future energy landscape?

10.00 – 10.30 (4 a.m. EST)

What’s Next? A Climate for Action

Through a powerful visual narrative, Nobel Laureate Al Gore reveals what’s next for climate in 2015.

14.30 – 15.45 (8:30 a.m. EST)

The Geo-Economics of Energy

How are energy producers and consumers adapting to increasing uncertainty?

Dimensions to be addressed: Demand and supply uncertainty; Market volatility; Geo-economic shifts

Thursday 22 January

16.30 – 17.30 (10:30 EST)

Closing the Climate Deal

How can a comprehensive global climate deal be achieved in 2015?

Friday 23 January

09.00 – 10.00 (3 a.m. EST)

The BBC World Debate: A Richer World, but for Whom?

Are existing growth models failing to deliver jobs and address income inequality?

10.30 – 11.30 (4:30 a.m. EST)

Tackling Climate, Development and Growth

What resources and commitments are needed now to tackle climate change, development and growth?

12.30 – 14.00 (6:30 a.m. EST)

Employment: Mind the Gap?

Remuneration for top jobs continues to increase while mechanization and offshoring have eroded middle-wage jobs. Inequality in capital and income are on the rise and the trend shows no signs of abating. With 42 million people striving to join the workforce every year, is this trend reversible?

– What are the long-term concerns for youth in this tough market?

– What solutions could alleviate this trend in the short term?

– How can the labour market be re-organized? – Is globalization driving inequality?

18.00 – 18.15 (noon EST)

Sustainable Development: Demystifying the Facts

A thought-provoking presentation by Professor Hans Rosling that reveals the surprising trends shaping today’s world.

18.15 – 18.45 (12:15 p.m. EST)

Sustainable Development: A Vision for the Future

A discussion with Bill and Melinda Gates on catalysing action on the new Sustainable Development Goals

18.30 – 20.00 (12:30 EST)

Should Business Lead the Social Agenda?

Complex global problems are often left for international organizations and government to solve. As a result, we have failed to meet challenges such as the Millennial Development Goals. Businesses play an increasingly important role in the global system, and face growing pressure from millennial consumers and employees to align core operations with social impact. Can businesses help to find a solution to global challenges, and should these challenges really be tackled by businesses?

– Is business doing enough?

– Can business solve social problems and make a profit? What models exist?

– Do other stakeholder groups need to rethink their traditional roles?

Saturday 24 January

11.00 – 11.30 (5 a.m. EST)

An Insight, An Idea with Mario Molina

A conversation with Nobel Laureate Mario Molina on communicating the science behind climate change

15.30 – 16.30 (9:30 a.m. EST)

The Diversity Dividend

How can organizations embrace diversity to drive innovation and sharpen their competitive edge? Dimensions to be addressed: Paths for women in power; Ensuring LGBT inclusion; Diversity beyond borders

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