Out of the top 500 big businesses in America, Newsweek has awarded computer maker and technology company Hewlett-Packard the title of “Greenest Big Business”. With Dell at number two, Johnson & Johnson at number three, Intel at number four and IBM ranked fifth, technology companies take four of the top five spots. While the complete list can be found here, the top ten rounds out as below:
|Company Name||Industry||Overall Score||1*||2*||3*|
|3.||Johnson & Johnson||Pharmaceuticals||98.56||56.70||98.17||75.88|
|6.||State Street||Financial Services||93.62||95.00||84.39||70.69|
|7.||Nike||Consumer Products, Cars||93.28||77.10||78.31||89.90|
|10.||Starbucks||Media, Travel, Leisure||91.63||30.50||82.01||75.|
Newsweek said it decided to start the rankings as the economic case for reducing emissions and doing business sustainably has become more compelling. Environmental regulations are likely even if the cap-and-trade bill is not passed. Smart companies are recognizing that fact and are striving to understand how they pollute and how they can cut their emissions ahead of time. The Green Rankings produced by Newsweek is one one to recognize companies’ efforts.
It is tough enough to accurately calculate a company’s environmental impact, never mind trying to compare environmental performance across industries. Some industries, such as mining and utilities, have a far greater impact on the environment than the financial industry, even if the mining or utility company is run incredibly well. In order to try to best compare apples to oranges, “the magazine worked [for more than a year] with leading environmental researchers KLD Research & Analytics, Trucost, and CorporateRegister.com to rank the 500 largest U.S. companies based on their actual environmental performance, policies, and reputation.” Green scores were based on three components:
*1)The ENVIRONMENTAL IMPACT SCORE, based on data compiled by Trucost, is a comprehensive and standardized quantitative performance measurement that captures the total cost of all environmental impacts of a corporation’s global operations. *2) The GREEN POLICIES SCORE, derived from data collected by KLD, reflects an analytical assessment of a company’s environmental policies and performance. *3) The REPUTATION SCORE is based on an opinion survey of corporate social responsibility (CSR) professionals, academics, and other environmental experts.
Click here for detailed notes on the methodology.
Indeed, simply the fact that Newsweek decided to begin an annual ranking demonstrates the new importance consumers, companies, and regulators are placing on environmental policy and sustainable business practices. This first list of the greenest big businesses may stir arguments about why certain companies ranked high while others did not. Newsweek understands this saying, “rankings inevitably provoke controversy—and we welcome that. Our hope is to open a conversation on measuring environmental performance—an essential first step toward improving it.”