Newsweek recently revealed its Green Rankings 2011, a list ranking 500 of America’s largest public companies on environmental performance. They teamed up with two of the leading environmental research firms, Trucost and Sustainalytics, to compare the actual environmental footprints, management, and reporting practices of America’s public companies (Newsweek). Can you guess who ranked in the top 5?
Well, before we start let’s take a quick look at what the data represents:
This score is derived from the three component scores: an Environmental Impact Score, an Environmental Management Score, and an Environmental Disclosure Score; weighted at 45 percent, 45 percent, and 10 percent (Newsweek).
Environmental Impact Score:
Based on data compiled by Trucost, this is a comprehensive, quantitative, and standardized measurement of the overall environmental impact of a company’s global operations. Each company’s footprint was based on 750 metrics including greenhouse gas emissions, water-use and waste disposal (Newsweek).
Environmental Management Score:
Based on an analysis of companies tracked in Sustainalytics’ Global Platform, the Environmental Management Score is an assessment of how a company manages its environmental performance through policies, programs, targets, certifications, controversies, and the like (Newsweek).
Environmental Disclosure Score:
Debuting this year, the environmental disclosure was included as a stand-alone score assessing each company’s transparency with regard to its environmental performance. This score includes key transparency initiatives like the Carbon Disclosure Project (Newsweek).
2011; America’s top 5 Environmental Performing Public Companies
Bringing in the top spot for 2011 was IBM with an overall 82.5 green score. They scored 78.8 in environment impact, 86.2 in environment management, and an 83 in environmental disclosure. IBM’s foundation for green success can be found in their strong corporate responsibility, sustainability stance, and overall positioning on environmental affairs.
Hewlett-Packard came in second, scoring a 75.8 overall green score–nearly 7 points behind IBM. Much of HP’s foundation for green success can be found in their application of life-cycle management techniques. Sprint Nextel ranked third, Baxter ranked fourth, and Dell finished in the top five spot. Each company had an overall green score in the mid-low 70’s. Referring back to my earlier post, Balance Your Business Scorecard, as active stakeholders, we must evaluate environmental performance and support & reward green companies. Choosing corporately responsible companies ensures not only the health of our environment, but also the health of our economy.
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