This is the 8th year for the SB20, the World's Top Sustainable Stocks. As in past years, we worked with a group of judges who are leading green stock analysts to select the companies.
The Judges
Our judges are some of the most respected green analysts in the world:
Rafael Coven, Managing Partner, Cleantech Indices LLC
Matt Patsky, Managing Partner, Winslow Management Company
Elizabeth Levy, Research Analyst, Winslow Management Company
Jules Frieder, Environmental Analyst, Calvert Group
Ton Rennen, Senior Sustainability Analyst, Triodos Bank NV
Arthur van Mansvelt, Sustainability Analyst, Triodos Bank
The purpose of the SB20 - the Sustainable Business 20 - is to showcase innovative, model companies that are leading us toward our ultimate goal of reaching a green economy.
The challenge we give our judges is to nominate, discuss and then vote on 20 companies that, through their products or initiatives, have made substantial contributions over the past year.
This year, the judges were tasked with the proposition of selecting companies that are progressing even during this recession.
To be on the list, companies must be strong on both the sustainable and financial sides. It is not a "buy" list, but because the companies are strong financially, their stock may well be worth be buying at some point based on stock market positioning. We strive to choose companies of various sizes, industries and parts of the world, but the list isn't meant to constitute a diversified portfolio.
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Our judges selected the 20 companies on this year's list based on the following
Sustainability and Financial criteria:
Sustainability Criteria:
The most exciting companies in terms of how they are conducting their business, or in the disruptive green technologies they are advancing that solve our environmental problems and lead us to a sustainable society. In particular, they have a very strong GREEN story, with the ability to have widespread influence.
Companies must have made major announcements and/or significant progress in meeting targets over the past year.
Financial Criteria:
Companies are profitable with strong management and balance sheets. Development stage companies must have revenue and be on track to profitablity. Each company would enhance an investment portfolio although it may not be in buying position today.
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If it's not a "Buy" List, then why do we do it?
Although there's no shortage of information on the environmental performance of companies, it remains scattered and difficult to find. Few people have the time or interest to plow through sustainability reports of thousands of companies, yet we receive requests from the media, financial advisors and individual investors, NGOs, research firms and others asking us which are the top companies and how to differentiate among them.
It's hugely important that companies that stick their necks out feel appreciated for their work. While it's easy to make small improvements and send out press releases, it's exceedingly difficult to literally transform the way a business operates - the products they make, how they distribute them and how they dispose of them - which is what we're asking them to do.
Many of the "corporate pioneers" depend on us to get the word out on what they do on an-going basis - the really tough work of measuring and reducing carbon emissions, using lifecycle analysis to design products, working with suppliers to meet their green criteria, reducing toxics in products, etc. Much of this work isn't "newsworthy" and doesn't get covered by the press, who often doesn't have a good grasp of its importance.
